1. What is the purpose of this operational guideline?
This Operational Guideline is intended to provide guidance in relation to the compensation provisions of the National Disability Insurance Scheme Act 2013 and the National Disability Insurance Scheme (Supports for Participants – Accounting for Compensation) Rules 2013.
Refer to the Road map for Operational Guideline to work out which section of this Guideline applies.
2. What is the relevant legislation?
- Sections 3–5, 11, 34, 35, 104 – 116 and 182 – 195 of the National Disability Insurance Scheme Act 2013 (External website) (NDIS Act); and
- National Disability Insurance Scheme (Supports for Participants – Accounting for Compensation) Rules 2013 (External website) (Compensation Rules).
The National Disability Insurance Scheme (NDIS) is designed to complement, not replace, existing compensation arrangements for personal injury.
The compensation provisions of the NDIS Act and the Compensation Rules (External website) are about ensuring that when a person receives, or is entitled to receive, compensation payments, the National Disability Insurance Agency (NDIA):
- recovers NDIS amounts (External website) paid to a participant where compensation has been paid, or will be paid, for the same supports; and
- ensures that the reasonable and necessary supports stated in a participant’s plan are reduced to take account of the compensation payments received, or given up, by a person.
Sections 8 – 10 of this Operational Guideline relate to recovery actions the NDIA can take where a participant is entitled to receive compensation, has commenced action to take compensation or received compensation in respect of a personal injury where the NDIA had provided supports before the compensation was assessed and made available.
Where compensation is intended to cover some or all of the NDIS-type supports for the participant the NDIA can recover the cost of supports it has previously provided from the participant’s compensation award.
Sections 11 – 13 of this Operational Guideline relate to revising a participant’s plan where the participant has received compensation or agreed to give up compensation, in respect of a personal injury, which reduces the reasonable and necessary supports the participant receives under the NDIS. To the extent that funding for reasonable and necessary supports is reduced the participant is expected to fund supports from their compensation award.