Self-Managed vs Plan-Managed vs NDIA-Managed NDIS Funds: What’s the Difference?

Choosing how your NDIS funding is managed is one of the most important decisions you'll make in your NDIS journey. The way your funding is managed affects how you engage providers, who handles financial administration, and how much flexibility you have in using your supports.

For people with disability and their families, understanding the differences between self-managed, plan-managed, and NDIA-managed funding options helps ensure your plan works best for your needs and goals. Here’s what you need to know.

Self-Managed Funding

Self-managed funding gives you full control over your NDIS budget. You choose your providers, manage payments, and take care of all related financial tasks yourself or with the help of a trusted nominee. According to a 2021 NDIS research, self-management can lead to beneficial outcomes, including improved quality of life, health, and social participation. However, participants have noted challenges such as the time commitment required and the need for clear information on allowable expenditures.

Responsibilities:

When you self-manage your funding, you're responsible for selecting and paying your service providers, claiming reimbursements through the NDIS myplace portal, and keeping accurate records of your spending. You must ensure that all purchases align with the goals outlined in your plan and meet the NDIS definition of ‘reasonable and necessary’ supports. You’ll need to track your budget carefully to avoid overspending, and you're expected to keep invoices and receipts for five years in case of an audit.

If you’ve appointed a nominee to help, they can assist with these tasks, but the ultimate responsibility remains with you. Providers in this model must supply invoices, but they are not responsible for making claims or managing your budget.

Benefits:

• Maximum flexibility and choice, including using both registered and unregistered providers.
• Ability to negotiate rates and build a support team that suits your preferences.
• Greater control and visibility over how your funds are used.

Challenges:

• High administrative burden, including tracking expenses, submitting claims, and keeping records.
• Must understand and follow NDIS price limits and guidelines.
• Potential risk of mismanagement if not properly supported.

To explore self-managed funding in more detail, the NDIS offers helpful tools and resources, including:

• The Self-Management Guide – a practical step-by-step guide to managing your own plan.
• A range of self-management resources to help you build confidence and stay on track.

These resources are a great starting point if you're considering taking more control over how your supports are delivered.

Plan-Managed Funding

Plan-managed funding involves a registered NDIS Plan Manager who handles your financial administration. You maintain choice and control but without the hands-on task of managing invoices and claims. The NDIS provides resources to help participants understand plan management, including how to find and connect with a Plan Manager, and what to expect from the arrangement.

Responsibilities:

Under plan-managed funding, you are still responsible for choosing your providers and ensuring their services support your goals. However, the financial administration including paying invoices, claiming funds from the NDIS, and keeping detailed financial records is managed by your appointed Plan Manager.

Most Plan Managers will consult with you before paying invoices, ensuring you approve services before funds are released. They also provide regular budget reports and can assist you in understanding different support categories and how to use your funds efficiently. You retain the ability to choose both registered and unregistered providers, and the Plan Manager ensures compliance with NDIS rules on your behalf.

Benefits:

• Freedom to use both registered and unregistered providers.
• Expert support in navigating NDIS financial rules and categories.
• Reduced administrative workload for you or your nominee.

Challenges:

• Slight delay in payment as invoices go through the Plan Manager.
• Reliance on your Plan Manager’s responsiveness and accuracy.
• Less direct control over the day-to-day financial tracking.

NDIA-Managed (Agency-Managed) Funding

NDIA-managed funding means the National Disability Insurance Agency handles all payments. The NDIS outlines that with NDIA-managed funding, participants can choose from a range of registered providers, and the agency manages the book-keeping and records of spending.

Responsibilities:

With NDIA-managed funding, your main responsibility is to choose from NDIS-registered providers and coordinate your supports in line with your plan goals. The NDIA takes care of paying providers directly through the myplace portal and ensures all transactions meet compliance and quality standards. You’re not required to manage invoices or keep financial records. However, you’re still responsible for ensuring the services you receive are helping you work toward your plan goals. Registered providers claim payments directly from the NDIA and must meet national NDIS quality and safeguard standards.

Benefits:

• No financial administration or record-keeping on your end.
• Assurance that all providers meet NDIS safety and quality requirements.
• Simple setup, especially for new participants or those with limited support networks.

Challenges:

• Limited choice as you can only use NDIS-registered providers.
• Less flexibility in tailoring services or negotiating pricing.
• Less real-time visibility into your plan spending.

How Can You Make the Right Choice?

There’s no universally “best” way to manage NDIS funding, each option offers different levels of control, responsibility, and support. Some participants choose a combination of management types for different support categories, which is also allowed under the NDIS.

Think about how much time and energy you want to spend on managing your plan, how confident you are with budgeting and paperwork, and the types of providers you want to work with.

McArthur Community Care is Here to Support You

No matter how you choose to manage your NDIS funding, McArthur Community Care is here to support you with high-quality core supports and expert support coordination. As a registered NDIS provider, our dedicated team is ready to answer your questions and work alongside you to ensure your supports are delivered in a way that meets your needs and goals.

Reach out to McArthur Community Care today because your goals deserve the right support.