Section 33 has been big news in the NDIS space recently, starting its second phase on the 19th of May. First introduced in the Getting the NDIS back on track bill on October 3rd with 12-month-only plans, Section 33 brought in funding periods for participants. This means that participants funds are released at set points throughout their plan, rather than all at once. When looking at a plan created after the 19th of May, you’ll find three components:
- Total funding amounts
- Funding component amounts
- Funding periods
While October’s stage brought in a maximum of 12-month funding periods (through 12-month only plans), the second stage allows the NDIS to restrict funding periods further, to a minimum of 1 month funding period. The maximum funding period is still 12 months. In this second stage, plans are now able to be approved for longer durations (e.g. 24 months), while still working within legislative frameworks.
The Three Components of Section 33
The new three components align to different parts of the plan. Total funding amounts is the total funding granted to a participant’s plan; it covers all support categories and can be found at the very start of your plan. This amount is for the duration of your plan and the whole amount won’t be able to be accessed straight away.
Funding component amounts are the disability supports categorised into four groups. These groups are Core Supports, Capacity Building Supports, Capital Supports and Recurring Supports. Each group of supports will have its own, separated funding component amount.
Funding periods are the points when funding will be released for you to utilise. If you haven’t used all the funding available in a funding period, it will roll over into the next. But beware – funding not used in a plan period will not roll over into your next plan. The typical length of funding periods will be 3 months; however, some home and living supports like Supported Independent Living (SIL) or Specialist Disability Accommodation (SDA) are set to default at 1-month intervals.
The Future of Section 33
As mentioned earlier, section 33 has been introduced in parts, from October 3rd when the bill first took effect to May now with default 3-month funding periods in most cases. But where do we go from here? The NDIS has been tight lipped on part 3, but we know the new framework planning stage will progress from late 2025. As usual, the NDIS has not released further information on the new framework planning and how it will look. We expect an update around the time of when it comes in, later this year.
New Rejection Messages for Providers
Four new bulk upload rejection messages have been created in regard to total funding amounts, funding component amounts and funding periods. They apply to both flexible and stated supports
Important Recent Revelations
- Home and Living supports can have funding periods longer than 1 month, however the 1 month is default. We have already seen some new plans that include home and living supports with funding periods up to 6 months.
- With Section 33’s PACE enhancement stage, the NDIS has also written in NDIS planner check in calls into their guidelines. You may have already noticed this, however now it’s in the guidelines released to the public. This means that a call from the NDIS can mean a unprompted plan review. If you’re a participant, remember to hold your ground and not conduct the phone call without your supports.
There are many reasons why participants and their supports are feeling nervous about Section 33, particularly for those who have varying needs at different times. If a participant has higher needs at the start of their plan that are restricted by funding periods, they have two options:
- Request emergency funds from later in the plan be brought forward. The NDIS have stated this can happen in limited and extenuating circumstances. The NDIS has not shared what those limited and extenuating circumstances are or developed any guidance around this. Remember, requesting emergency funds does not “top up” the plan, instead it takes the funds from a later funding period.
- You can request a plan review/ change of circumstances.
Plan Reviews and extending funding periods
If you know that restricting your funding periods into 3 months might put you at risk, you can speak to your planner about longer funding periods or having certain supports in your plan available on day one. The planner doesn’t have to honour this request, but you are still able to request a review.
If you’re a support coordinator or participant with one, you might need more support hours to help you understand the light breaking speed the NDIS moves at. Remember to request this from your planner and provide why it could be dangerous if you don’t get increased support coordination.
Q & A
Have any more questions? Here’s some questions and answers from the recent Section 33 webinar held by the NDIS:
Q) Can you please explain the process for having money from a future funding period released early due to an exceptional circumstance? Also, what qualifies as an exceptional circumstance?
A) There isn’t a list of exceptional circumstances answers that we have developed and the processes a participant will need to contact the NDIA, explain their situation and request that their funding from 1 funding period be brought forward. This will not increase funding, only move it around.
Q) Are there any tools available for customers or participants on how to manage their funding now there are smaller amounts and people having multiple providers?
A) There are some budgeting tools available on the NDIS website for participants to access, which can help them manage their budget. You can find them here.
Q) Do providers require a new service agreement for each funding period?
A) It’s up to providers to determine the length of service agreements based on funding periods. Service agreements can continue to be for the entire plan duration. In this case, you would list the separate funding periods and the schedule of supports which fit into each funding period. This is a provider’s decision to develop service agreements for each individual funding period or for the whole plan.
Q) Will the funding periods be updated automatically when indexation occurs and if so, will customers see these new amounts on their portal or will it always reflect what was written in the plan?
A) Indexation will occur as it is now, so participants plans will be indexed whenever they need to be indexed. Only the remaining amount in a plan will be indexed. The amount that’s printed on a plan will not be be changed, however, participants will be able to see those updated amounts in the participant portal.
Q) Can you confirm when we claim still weekly funding covering 2 funding periods? Do we need to split the weekly funding into two funding periods?
A) No providers do have to submit two claims if the claim crosses 2 funding period. It doesn’t need to be broken down into each individual funding period, just the one claim which crosses the two funding periods will be fine.
Q) How should specialist behaviour support providers proceed when there is insufficient funding allocated within the participants current funding period to complete the legislated requirements such as functional behaviour assessments, behaviour, support plans and reporting obligations?
A) The recommended pathway for addressing this gap is with the NDIA or the Commission, ensuring compliance while managing service delivery constraints. If a participant has a requirement for a larger amount of funding to be allocated at the beginning of their plan because they require a behaviour support assessment to be completed then they can request that in their planning meeting. Participants can request a review of the planners decision.
Q) Where a participant’s plan begins with public holidays in the first funding period. How will this work if funding is divided into equal funding periods?
A) Participants can negotiate the amounts allocated to each funding period. If you’re a participant, you’ll need to have this discussion with your planner. Participants can also have a discussion with their planner around having longer funding periods. It will be up to the planner or NDIS delegate to decide whether to go ahead with the suggestion. If a participant doesn’t agree with the decision that is made, they can request that decision to be reviewed.