Connect and Grow Magazine Issue 15: November - December 2024
With all the changes to the NDIS since October 3rd, 2024, we have seen so many changes occur, and people—and I mean all people—are confused, and many are even angry. We are seeing this in posts on social media and the aggression that comes when people hear that what used to be okay for their services is no longer allowed or okay or a business hearing they may have to spend even more money or stop providing services they have been providing for a few years.
So what is going on, and how can it become worse?
· Funding decreased in plans for participants.
· Over 4,000 people to date have had their access to NDIS revoked, which means they have lost their support and services.
· Payment locks are occurring, all businesses are slowly being reviewed, and many companies have to close their doors.
· Business closing their doors due to payment locks.
· The cost of audits is rising to a price businesses struggle to afford.
· There are currently over 160,000 businesses offering services to those with an NDIS plan, but only 19,000 are NDIS registered. Just over 670,000 people are on the NDIS, which is slowly being reduced.
· The growth of the people on NDIS has been reduced to 8% from 28% previously.
· Changes in STA, who can access that service, and what NDIS will and won't pay for as part of it.
· Music and potentially art therapy are to be removed from NDIS, which means people currently accessing those services will not be able to continue.
· Emergency management updates.
· Provider Registration – becoming mandatory
The roadmap is that the registration process will become mandatory from July 1st, 2025, and it is highly likely to apply to all businesses, including sole traders/independents. The process remains to be seen; as you can see, buying the numbers will take a long time with the registration process.
· Eligibility Reassessment
We have also heard that an average of 1,200 eligibility reassessments are completed each week, and many people's access to the NDIS is being revoked. Others are being asked for more supporting evidence to be provided within 28 days, and if they do not offer it, their access will be withdrawn. This leaves people needing support, some unsure what to do next, as foundational support still needs to be set up.
· Payment Locks
Payment locks are occurring increasingly, and businesses—including sole traders—are not being paid for services they have provided. Many independent and smaller companies are not being paid, and getting a lawyer and fighting it costs more than they can afford.
I have heard from several businesses that owed $5,000 to $500,000 or more. Some companies are NDIS registered, while others are sole traders.
The payment integrity team will ask for certain documents, such as a support log - preferably signed; if not signed, they will check progress/shift notes for any reference to why it is not signed. They will also ask for service agreements, case/shift/progress notes, care plans and sometimes your risk assessments, in addition to the support logs. They seek evidence of how your business operates and if you are providing a safe service and doing the work you are invoicing for.
Now, having said all of that, many businesses do all of that and are still struggling to get paid, and it can be the end of a business not being paid for several months after service delivery.
STA changes. These changes mean that people who live independently can no longer access STA and that there are changes to what NDIS will and will not pay for. You can read more about it here: https://www.ndis.gov.au/changes-ndis-legislation/frequently-asked-questions-about-legislation. Scroll down to the STA and SIL area, which will provide more information.
Music and, potentially, Art Therapy will be run differently from February 2024. It will be at a different rate and for a group setting of a minimum of 4 people. The 1:1 rate will also be different and lower than the current rate. The recently released information has mentioned a registered provider; this could be an NDIS registered provider.
These changes are just the beginning. A lot more is coming, and the challenging part is that only some people know about them once an invoice is declined or an issue occurs. This is challenging for all people concerned. It also impacts businesses and people's jobs, especially at this time of the year.
With all these changes and businesses having to be flexible, I have two products and coaching services available that can help.
The Connect Empower Soar Business Membership is open to all businesses, not just those focused on disability. For just $88, you will receive weekly emails for an entire year and enjoy 14 months of access to exclusive content. Membership includes discounts on events and products and a Connect & Grow Magazine subscription.
Connect & Grow Magazine is a fantastic health, fitness, and well-being resource. If you're reading this article online, you should realise that by subscribing to the magazine, you can access the entire publication and discounts on some of our other programs. Subscribing is also an integral part of your business well-being plan, ensuring care for both yourself and potentially your staff. This excellent value is available for just $99.00 for the year.
If you are a business owner in the NDIS landscape, staying up-to-date on the latest changes and considering your options is crucial. Here are some points to keep in mind regarding potential challenges:
1. Non-Payment for Services: If clients are not paying for services rendered, it's vital to have a transparent process for managing debts. This could include sending reminders, establishing payment terms upfront, and planning when to escalate matters, like seeking legal support.
2. Changes in Client Funding or NDIS Plans: Clients could lose their NDIS plans or see a decrease in funding. Regular communication with clients about their plans can help you anticipate these changes. Consider diversifying your client base or services to reduce reliance on NDIS participants alone.
3. Contingency Planning: Developing a business contingency plan is essential. This plan might include strategies like:
- Building an emergency savings fund to cover operational costs during lean times.
- Exploring alternative funding sources or service models to sustain your business.
- Identifying partnerships with other service providers that can help you share resources.
4. Adaptability and Resilience: Be prepared to adapt your services based on the ongoing changes in the NDIS framework. This might mean upskilling your staff or exploring new services that align with current and future market demands.
5. Engagement with the NDIS: Stay actively engaged with NDIS updates and discussions within the community. This will help you understand the landscape better and advocate for the needs of your business and clients.
By proactively addressing these areas, you can better position your business to navigate the challenges posed by changes in the NDIS and maintain your support for clients.
If you need help with that, contact us! We also offer staff team-building and services for your business’s long-term success.
Written by Jacqui Grant
(c) 2024 Break Free Consultancy
Disclaimer: All information is accurate at the time of publication and is subject to change. Always check the NDIS website for the most up to date information as things are changing.