In-kind funding arrangements
In-kind arrangements are temporary funding arrangements, put in place when the NDIS started rolling out across Australia.
Under these arrangements, state, territory and/or Commonwealth governments continue to pre-pay providers to deliver some disability-related programs.
When NDIS participants use these programs we call the pre-paid supports they get ‘in-kind’.
Providers who deliver in-kind supports must not claim payments for these supports from participants because governments have already paid these providers in advance to deliver the supports.
If you are a disability support provider, your state, territory and/or Commonwealth government will have previously told you if you deliver in-kind supports.
If you are an in-kind supports provider, the following information will help you understand:
- planned changes to in-kind arrangements
- how you can prepare for and adapt to these changes
- key points regarding service bookings and payment.
In-kind arrangements will gradually phase out.
After this change participants will be able to purchase reasonable and necessary supports directly from providers using their NDIS plan funds.
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 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.
Participants can choose their provider
Currently, participants access in-kind supports through their existing provider.
Once the in-kind arrangement stops, 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 purchase supports from their existing provider or engage a new one.
Participants may receive different supports
Participants will receive funding for reasonable and necessary supports. When in-kind arrangements cease this means the supports they purchase could be more, less or different from the supports they get through the in-kind arrangement now.
Providers may need to register
If you haven’t already, you will need to become an NDIS registered provider so you can continue to provide supports to NDIS participants who have NDIA-managed plans.
The NDIS Commission (external) now registers and regulates providers in all states except Western Australia (WA).
Providers will need to claim to be paid
From the date the pre-paid in-kind arrangements stop, you will need to claim for all supports you provide to NDIS participants.
For all supports delivered to NDIA-managed participants, you will need to make service bookings and claim for supports delivered using the myplace Provider Portal.
If a participant is self-managing their NDIS plan funding, you will claim payment directly from the participant.
If a participant has a plan manager managing their support funding, you will claim payment directly from their plan manager.
Pricing for supports after in-kind funding arrangements cease
Providers can’t charge above NDIS catalogue listed prices for supports they deliver to participants with an NDIA-managed plan. The NDIS catalogue amounts include provision for overheads and other costs.
For more information on pricing, visit the Price Guides and Information page.
The NDIS changes the way governments fund disability supports, making it more flexible for participants and providers. Most providers have already changed over to the new funding model.
Service bookings and payment
Until the date your in-kind arrangement ends, you should keep delivering the same supports to participants in the same way you do now. You have been pre-paid to deliver in-kind supports up until this date.
To make sure providers don’t claim for pre-paid supports delivered before their in-kind funding arrangements stop, the NDIA will be monitoring payment claims.
Service bookings after in-kind funding arrangements cease
You must check with each participant if they still want to get supports from you after the date the in-kind arrangement stops. It’s the participant’s choice to keep using your services or not. It is also possible some participants may use more, different or less supports than what they have had before.
Setting up service bookings in advance
If a participant is going to start paying for your supports after the in-kind arrangements stop, you may want to get ready by setting up a new service booking.
You must make sure the service booking period starts after the date the in-kind funding arrangement ends.
For example, if the participant’s in-kind arrangements end on 30 June 2019, you must set up the service booking to start on 1 July 2019 or later.
This helps you to make sure you don’t claim payment for supports delivered before your pre-paid arrangement ends.
For more information on your in-kind funding arrangement, contact your government program manager.