A simpler, easier to use catalogue for funded NDIS supports and services, changes for the 2015/16 indexation for services and the introduction of an establishment fee to be applicable for personal support and community participation services will be introduced by the National Disability Insurance Agency from 1 August 2015.
With the application of indexation, the NDIA is providing more time for service providers in personal support and community participation to make the transition to the full scheme pricing arrangements.
1. New catalogue
The new catalogue follows an extensive redesign of the construct of plans based on participant and provider experiences in the trial sites, which will enable greater flexibility in purchasing. The catalogue redesign is also supported by a simpler and shorter price list, which will make it easier for providers to claim funds. The new catalogue also aims to reduce confusion amongst participants and providers about the array of supports that can be funded through the NDIS.
The new, simpler catalogue will help ensure that NDIS planning is better aligned to participant outcomes, focusing on core supports, and investments by the Agency in capacity building and purchase of assistive technology to increase participants independence and reduce long term costs.
This approach will encourage the development of innovative support options for NDIS participants, enabling greater choice and flexibility in support arrangements that participants can work out with providers. This approach is preferable to plans being limited by fixed line items based on outputs such as hours of service delivered.
2. Indexation 2015-16
The new indexation arrangements reflect the NDIA’s commitment to supporting service providers to make the transition to the NDIS over coming years, ensuring a strong supply of services and a competitive, diverse market providing real choice and high quality services for NDIS participants.
Under the arrangements to come in place from 1 August 2015, the NDIA is increasing the transition period for personal support and community participation by increasing the current pricing by 1.9% for all states bringing forward the December Equal Remuneration Order (ERO) increase.
On top of this 1.9% increase, the NDIA will apply the annual indexation of 2.3% to prices in NSW, Tasmania and Victoria for personal support and community participation to help bring the current transition prices in line with those already established in WA, SA and NT.
All other services subject to indexation, outside of personal support and community participation, will be indexed by 2.3%.
This means that from 1 August 2015, the increases are:
- Personal support and Community participation Victoria, NSW and Tasmania: wage indexation and ERO, resulting in a 4.2% increase for all supports related to these services, boosting the rate for daytime support from $39.52 per hour to $41.18 per hour.
- Personal support and Community participation WA, SA, ACT and NT: narrowing the different pricing arrangements with an ERO increase of 1.9%, resulting in an increase in the rate for daytime support from $41.97 per hour to $42.77 per hour.
- All other pricing subject to indexation an increase of 2.3%. Higher prices will continue to be paid for participants requiring higher intensity supports and for services delivered after hours, and will be indexed for 2015-16 commensurate to day rates.
3. Establishment fee allowance
Following the completion of the pricing review for personal support and community participation in 2014, the Agency will be introducing an establishment fee allowance within the plans for participants who utilise more than 20 hours per month of these services.
These new pricing arrangements follow extensive consultation with service providers and will provide more time for the sector to adapt to the target efficient price for personal and community supports.
The Agency remains committed to achieving an efficient price for the delivery of disability supports as part of a longer term transition towards a deregulated pricing environment around the time of full scheme implementation.
The NDIA continues to actively engage with current and potential providers to understand business models, major challenges (including market structure and pricing) and opportunities presenting themselves in the market.