How the NDIS works
A clear, plain English explainer for participants, families and carers. What the NDIS is, how plans are funded, and how to actually use providers.
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What the NDIS actually is
The National Disability Insurance Scheme (NDIS) is an Australian Government programme that funds reasonable and necessary supports for people with permanent and significant disability. It is run by the National Disability Insurance Agency (NDIA).
The scheme is built on the idea of choice and control. Instead of governments deciding which services you receive, the NDIS gives you a budget and lets you choose providers, workers and supports that suit your goals.
The NDIS is not Centrelink, it is not a pension, and it is not means tested. It is a separate scheme that funds disability support, regardless of income.
Who is eligible
You may be eligible for the NDIS if you are aged under 65, are an Australian citizen, permanent resident or hold a Protected Special Category Visa, and have a permanent disability that significantly affects your ability to take part in everyday activities.
Children under 9 can access early intervention support through the NDIS even without a formal diagnosis, if a developmental delay is identified.
You apply by making an Access Request to the NDIA. The Access Request form asks for information about your disability and how it affects you, plus evidence from your treating professionals.
How an NDIS plan works
Once you are accepted into the NDIS, you sit down with an NDIA planner or partner to build your first plan. The plan lists your goals and the funding you receive to work toward them.
Funding sits in three main categories. Core supports cover everyday assistance like personal care, social participation and consumables. Capacity Building covers therapies, skill development and support coordination. Capital covers larger one-off purchases like equipment or home modifications.
Plans usually last 12 to 24 months. You can ask for a plan review if your circumstances change, or wait for the regular reassessment near the end of your plan period.
The three funding types
How your plan is managed decides which providers you can use. There are three options and you can mix them across different categories.
NDIA-managed means the NDIA pays your registered providers directly. You can only use NDIS registered providers under this arrangement.
Plan-managed means a plan manager handles your invoices for you. You can use registered or unregistered providers. The plan management fee is funded on top of your plan.
Self-managed means you receive the funds and pay providers yourself. You have the most flexibility, including the ability to negotiate rates and use independent support workers.
Finding and using providers
A provider is anyone you pay using your NDIS funds. That includes large registered organisations, smaller unregistered providers, sole traders and independent support workers.
You are not locked in to any provider. You can change providers, use multiple providers at once, or pause a service if it is not working out. You should sign a service agreement with each ongoing provider that sets out what they will deliver and how billing works.
Providers cannot legally use your funds without your authorisation. If a provider asks you to sign a blank agreement or pressures you into a long contract, that is a red flag.
What it costs you
Approved supports are paid from your NDIS plan, not from your own pocket. There is no co-payment for participants.
Things outside your plan, like everyday living costs, holidays for non-disability reasons, or supports a family member would normally provide, are not funded by the NDIS.
The NDIS Pricing Arrangements set the maximum hourly rates that registered providers can charge. Self-managed and plan-managed participants can negotiate rates with unregistered providers.
Plan reviews and reassessments
Near the end of your plan, the NDIA will reach out to do a reassessment. This is the chance to talk about what worked, what did not, and what you need next.
Bring evidence to your reassessment. Reports from therapists, notes from support coordinators and a list of what you actually used can all help shape the next plan.
If you think your plan is wrong before the reassessment, you can request a Section 100 review. There is a strict 3 month window from when you receive the plan decision.
Ready to find providers?
Now that you know how the NDIS works, the next step is finding providers in your area. Supportd lists registered providers, unregistered providers and independent support workers in one place.