RSM warns NDIS providers on evolving guidelines
Tighter restrictions on NDIS support inclusions mean providers will be under increased scrutiny, and some may lose revenue, RSM has warned.
A new definition of National Disability Insurance Scheme (NDIS) supports took effect on 3 October 2024. NDIS providers will need to manage the impacts of this change on their businesses’ revenue, operations and compliance, RSM said.
“Some may lose revenue from participants no longer being able to purchase or limits to the purchase of some supports, or non-compliant invoices being rejected, and all providers will need to comply with the fair pricing rules and changing compliance and regulatory requirements,” RSM warned.
The government has announced reforms to the NDIS that aim to moderate its cost growth, which has ballooned since the scheme was first introduced in 2013.
In 2015–16, the NDIS cost the government $2.4 billion. The program cost $44.3 billion in the 2023–24 financial year.
Under the changes, disability supports in the NDIS will be defined based on a list of approved supports, alongside a list of services and supports that are clearly not disability supports. There will be a limited process to apply for replacement supports.
“Understanding what qualifies as NDIS support is crucial for accurate service delivery, invoicing, and compliance,” RSM said.
Under the updated system, providers must use transparent pricing to show the true cost of services to ensure that NDIS participants are receiving value for money.
This means that providers cannot charge the NDIS more than is deemed necessary for a support or service, unless there is a reasonable circumstance to explain higher incurred costs.
RSM advised that clear and accurate invoicing would be paramount for NDIS providers in order to receive payments promptly.
Providers must now include total budget amounts, funding component details, and funding periods in their invoices. This has offered transparency to participants and the NDIS regarding fund allocation.
The NDIS are imposing a strict 90-day claiming period in certain circumstances, RSM noted.
“Providers need to manage invoicing and claim processing promptly, and carefully manage debtors to minimise the administration load of chasing long-term outstanding claims,” RSM said.
The Australian government is also closely monitoring the quality and service standards of NDIS providers, leading to penalties for non-compliance. RSM noted a marked increase in regulatory action against NDIS providers, with a legislated penalty amount in excess of $15 million.
“Providers will need to stay informed, undergo relevant training, and foster a culture of improvements. Demonstrating a commitment to quality ensures compliance, fosters trust, and instils confidence in NDIS participants,” RSM said.
