In-kind funding arrangements
In-kind arrangements are interim funding arrangements, which were put in place when the National Disability Insurance Scheme (NDIS) started rolling out across Australia.
Under these arrangements, providers of some disability support programs continued to be paid in advance by state/territory and/or Commonwealth governments to deliver these service.
When used by NDIS participants, these pre-paid supports are called ‘in-kind’.
Providers who deliver in-kind supports should not claim for payment from participants’ plans for these supports. It's because governments have already paid providers in advance to deliver these supports.
State/territory and Commonwealth governments will have previously advised providers of their status as a provider of in-kind supports.
If you are a provider of in-kind supports, the following information will help you understand:
- planned changes to in-kind arrangements;
- how you can prepare for and adapt to these changes; and
- key points regarding service bookings and payment.
In-kind arrangements will be progressively phased out. This means providers of in-kind services will no longer be paid in advance by governments.
Under the new funding arrangements, participants will be able to purchase reasonable and necessary supports directly from providers using funds in their NDIS plan.
This change in funding arrangements is known as ‘cashing out’.
Timeframe for changes
Not all in-kind supports will transition to the NDIS at the same time, the transition will be gradual.
If you deliver any supports to NDIS participants on a pre-paid (in-kind) basis, your government program manager will advise you when and how these in-kind arrangements will finish. Please contact them if you have any questions regarding these changes.
Key changes for providers
Participants can choose their provider
Under the NDIS (Plan Management) Rules 2016, participants must continue to access in-kind supports through their existing provider. Once the in-kind arrangement finishes, the participant will have choice and control over what, when, where and by whom, their reasonable and necessary supports are provided.
This means a participant may choose to continue purchasing supports from their existing provider or engage a new one.
Participants may receive different supports
Participants will receive funding for reasonable and necessary supports. This may mean the supports they purchase from you could be more, less or different than the supports they received through the in-kind arrangement.
Providers may need to register
If you haven’t already, you will need to become an NDIS registered provider to continue providing supports to NDIS participants who have their plans managed by the NDIA. Providers can access the Provider toolkit (external) for information regarding provider registration.
The NDIS Quality and Safeguards Commission (NDIS Commission) now registers and regulates providers in New South Wales and South Australia. Please access NDIS Commission (external) (External website) for more information.
Providers will need to claim to be paid
From the date the pre-paid arrangements cease, the NDIS funding model will apply to the supports you deliver to NDIS participants. You will need to claim for all supports you provide to NDIS participants after this date.
In most cases, a participant’s plan will be managed by the NDIA. For all supports delivered to NDIA-managed participants, you will need to make service bookings and claim for supports provided using the myplace Provider Portal (External website).
If a participant is self-managing funding under their NDIS plan, you will claim payment directly from the participant.
If a participant has a plan manager, managing funding for their supports, you will claim payment directly from the plan manager.
Pricing for supports after in-kind funding arrangements cease
Providers cannot charge above the prices listed in the NDIS catalogue for supports provided to participants with an Agency-managed plan. The amounts in the NDIS catalogue include provision for overheads and other costs.
More information regarding pricing, can be found on the Price guides and information page.
The NDIS changes the way disability supports are funded so it's more flexible for participants and providers. Most providers have already changed over to the new funding model. The change makes it fairer for all providers.
Service bookings and payment
Even when the date your in-kind arrangements end is known, providers must not claim cash payments for in-kind supports.
You should keep providing the same supports to participants in the same way you do now, until the date funding arrangements change. You have been pre-paid to deliver supports up until that date.
The NDIA will review all claims to make sure providers have not claimed for supports provided before the date the new funding arrangements start.
Talk to participants before setting up any service bookings for after in-kind funding arrangements cease
You must check with each participant if they want to continue receiving supports. It is the participant’s choice whether to keep using your services. It is also possible some participants might purchase more, different or less supports than they received before.
Setting up service bookings in advance
You may have confirmed with a participant they want to continue receiving supports from you. In this case, you may want to set up a service booking in advance for the cash supports you will provide to the participant after in-kind arrangements finish.
You must make sure the period covered by the cash service booking starts after the date the in-kind funding arrangements end.
For example, if the in-kind program the participant is using is due to cash out on 30 June 2019, the cash service booking to continue providing supports must start on 1 July 2019 or later.
This will make sure you do not claim cash payment for supports provided before your pre-paid arrangements end.
The Provider toolkit will show you how to become an NDIS registered provider; how to make a service booking and how to claim using the myplace provider portal.
You can also contact your government program manager for more information.