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Getting the NDIS Back on Track: Update Oct 2024

October 2024

This week, two major announcements were made that will affect NDIS providers — The NDIS Bill No.2. and NDIS Commission’s new Regulatory Reform Roadmap.  Some changes are being put into play and the ground is being prepared for more. So, what are the main points providers need to know? What are the timeframes? And how can you get involved in the process?

The NDIS Act Bill No.2

Bill No.2 will strengthen the NDIS Commission’s role. Penalties for providers responsible for participant injury or harm will increase from $400,000 to over $15 million. This brings the maximum penalty in line with the penalties under the Workplace Health and Safety legislation.

The NDIS Commission will have the power to:

  • Impose stricter regulatory requirements and stronger penalties and criminal offences.
  • Strengthen information gathering powers to improve monitoring and compliance of NDIS providers and others; and
  • Expand the scope and application of banning orders —including to people operating in other critical areas of the NDIS, such as auditing and consulting activities.

Timeframe

  • Step 1: Consultation (October 2024 – December 2024)
  • Step 2: Proposed NDIS Bill No.2 considered by Parliament no earlier than March 2025
  • Step 3: Implementation will commence after the Bill is passed by the Parliament.

The Regulatory Reform Roadmap

Mandatory Registration for which NDIS Providers?

The Roadmap prioritises mandatory registration for unregistered Supported Independent Living (SIL) providers, Platform Providers and Support Coordinators.

No changes will happen before 1 July 2025 and a transition period will apply. Other providers will be required to be registered further down the track.

Timeframe

  • Step 1: Consultation (October 2024 – March 2025)
  • Step 2: Decisions and Transition Plans (April 2025 – June 2025)
  • Step 3: Commence Transition to Mandatory Registration (not before 1 July 2025)

Changes to the NDIS Practice Standards and Rules?

The NDIS Practice Standards will be reviewed — although, it’s not clear how far the review will go. It could mean simplifying general standards for the lower risk supports or revising the Core Module.

We do know that there’ll be new NDIS Practice Standards for shared supports in a group living arrangement (mostly relating to SIL). We also know that there will be a practical and legal separation of SIL and Specialist Disability Accommodation (SDA).

A draft of the changes is set to be circulated shortly after March 2025. Consultations will continue until then.

Registered NDIS providers should expect changes to affect audits after 1 July 2025. We’ll keep you informed of any changes and how we can assist.

What about Self-Directed Supports?

Participants with self-directed supports be consulted to develop the most appropriate registration method for them.

This category of registration would apply where both the following apply:

  • The participant, their guardian or legal representative contract all their supports directly, including through direct employment, independent contractors, or Services for One.
  • The supports DO NOT fall into the proposed Advanced Registration category (e.g. behaviour support, restrictive practices, or a group home) — these supports would be subject to Advanced Registration, regardless of self-direction. 

You can read more about the proposed registration categories in our blog here

Consultation is commencing in October 2024, with outcomes to be shared in July 2025.

How would the NDIS Provider Definition change?

The definition of an NDIS provider is also under review to fit the proposed registration system. Where the current definition includes any business that provides goods or services to an NDIS participant, the revised definition may exclude some retail businesses.

CONCLUSION

The NDIS Commission’s Regulatory Reform Roadmap shows the NDIS Commission’s priorities for the next 12 months. There’s more to come. Not all the recommended changes to the NDIS provider registration process are included.

But the Minister’s timeline is still on track. Supported Independent Living (SIL) providers, Platform Providers and Support Coordinators will transition after July 2025. And if the timeline stays on track, 2026 will see registration for all NDIS providers.

To get involved with the consultation process, email the NDIS Commission at rii@ndiscommission.gov.au to receive a notification when consultation opens.

If you’re an unregistered provider thinking about the upcoming changes and what they could mean for you, we discuss a range of strategies in another blog. If you want to register now, and want to start out right, then get in touch for a free 15-minute consultation.

PQplus will keep helping providers stay in touch with the requirements as things develop.

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