Changes in NDIA Pace System, Your Funding Might Be Affected

The new announcement regarding the budget system changes by the NDIA should be one of the top things to look at this week. Here, we talk all about the updates done to the NDIA Pace System. Keep in mind the date 19th of May, as things change from here. These changes are part of an update to Section 33 of the NDIS Act, and they will affect all new NDIS plans created or reviewed through the PACE system.

While it may seem like a small update, it will have a big impact on how participants access funding and how support is delivered. Let us know in detail how. 

About Section 33 and how it affects the NDIA Pace System

Before we jump the gun to tell you more about what and how to go about it, let us brief you on section 33. Section 33 of the NDIS Act outlines what a participant’s plan should include. If you are not aware, then know that in 2024, it was updated to allow “funding periods”.

Now, what are these “funding periods”?

They control how frequently and how much of your total NDIS funding can be used at a time. In general, what was practiced was receiving the entire amount of your plan at once. The change is that you’ll now get access to smaller amounts spread over time.

For example, if you have a 2-year plan, you may only be able to access 3 months of funding at a time.

Why were these changes brought in NDIA Pace System?

There were a few goals that were kept in mind while making this NDIA PACE system changes. This change is supposed to do the following:

• Improve budgeting and reduce overspending.
• Provide a better structure to plan spending.
• Offer clearer guidance for participants and providers.

The NDIA says they consulted many stakeholders, including carers, disability groups, and advisory councils, before making these changes. However, there is still very limited public information available. The Disability Intermediaries Australia (DIA) will continue to work with the NDIA to support everyone affected.

In the recent development, the PACE had already gone offline. Now, the following will be seen by the participants. 

• Participants will see their funding broken down into smaller timeframes.
• This doesn’t reduce your total funding, it just changes how it’s accessed.

Who will/will not be affected by the changes?

A fair question is who will be affected form the changes being made to the NDIA Pace System. See below to know more. 

You WILL be affected if:

• You are new to the NDIS and are getting your first-ever plan after 19 May 2025.
• You are an existing participant going through a plan reassessment (also known as a plan review) after this date.

What does this mean for you?

Your plan will include funding periods, which set how much of your total funding you can access at a time. You’ll need to manage your supports and spending within this period.

Your Support Coordinator at Gencare and the best Plan Manager will help you understand and adjust to this new structure.

You will NOT be affected (for now) if:

• Your current NDIS plan is still active and hasn’t been changed or reviewed.
• Your plan is being extended, without any updates or changes 
• What does this mean for you?

Your plan will continue to operate as it currently does, with the full funding amount available upfront

Role of Support Coordinator Under the NDIA Pace System Change

It is very important to know that participants will need their Support coordinators to understand changes to the NDIA Pace System. So what role do they have to get to? The following points will help: 

• Explain to participants what funding periods are.
• Keep track of which participants have funding periods.
• Help set up supports that match the funding periods.
• Let participants know there might be some delays, as this is new for everyone.
• Tell providers they may not get paid if supports are delivered outside the funding periods.
• Tell the providers to adjust invoicing to match the new system.
• Let participants know that using services outside funding periods might cost them out-of-pocket.
• Prepare participants for their next plan review, especially considering times they may need more support. 

Do not worry, it is in good of every participant! 

These changes aim to improve the long-term management of NDIS plans. While there may be some confusion at first, Support Coordinators and Plan Managers play a vital role in guiding participants through this transition. At Gencare, we respond quickly to such changes. We make sure that participants remain well informed with the updates and have no issues going ahead with the plan. If you are still in doubt and confusion about the NDIA Pace System Change, reach out to us!