Self-managing means that you, a family member or trusted person takes care of the day-to-day organisation of your NDIS funds.
The nominated person pays bills out of their NDIS budget, chooses how much to spend and organises paperwork and administration. The NDIA will decide whether the nominated person is suitable to self-manage.
This option gives you a lot of flexibility and control. If you are self-managing, you can choose any provider you like to deliver supports. This includes both NDIS registered providers but you can also receive services from providers who are not registered with NDIS.
With this flexibility comes a lot of responsibility. Self-management means keeping on top of your budgets while maintaining records and receipts for supports provided, claimed and paid.
It is strongly advised that self-managed participants set up an NDIS-specific bank account in the participant or plan nominee’s name. You will be responsible for paying any bank or transaction fees incurred as part of this bank account, so you will need to select the account that is right for you.
You will be in charge of requesting invoices from service providers and processing payments through the NDIS participant portal. Self-managed participants can also choose to pay a service provider upfront and have the money deposited into the nominated NDIS bank account. The account holder is exempt from paying income tax on any funds received directly from the NDIA and held in this bank account. You need to keep all invoices and receipts for five years.
It is important to keep in mind the the funding that is included in your budget will be based on NDIA pricing. This means that the money you receive to pay for example for a speech therapy session will be capped according to NDIA pricing. Some providers that are not registered with NDIA may charge more than this amount per session. If you choose an unregistered provider to deliver support services you may run out of money quicker.
Is it for me?
Choosing to self-manage means taking on the role of financial manager, support advocate, administrator and director. If you have the capacity and resources to fill these roles, and want complete control of your or your loved one’s NDIS plan, then self-management could suit you.
If you would like to self-manage, but feel you are lacking in certain skill areas or would like extra assistance, you may be able to receive support from the NDIS. If you think about your strengths and weaknesses during the pre-planning process, you can identify areas where you might be able to ask for Capacity building funds to increase your ability to self-manage.
For example, if you are happy to self-manage but would like to receive ongoing advice from a financial professional, then you can ask for this support to be included in your plan.
- Total choice and control
- Freedom to choose any provider
- Opportunity to develop or refine financial, organisational and admin skills
- Can apply for assistance through NDIS Capacity building funds
- Time consuming
- A lot of responsibility
- Need to meet with lots of people and providers
- Need to resolve billing issues yourself
- Might need to pay for services upfront and wait for reimbursement