Updated: Jun 30
The NDIS has released the new pricing arrangements and price limits that will come into effect from 1st July 2023. Get to know more about the importance of the Pricing Arrangements and what the key changes are below.
Understanding the importance of the Pricing Arrangements
The NDIS pricing arrangements and price limits are designed to ensure that people with disability have access to high-quality services and supports. It outlines the maximum price for supports, how providers should invoice, if a quote is required, and any rules and regulations that apply for the year ahead.
Although this may seem like a document just for providers, it holds a lot of benefit for participants as well. The guide can help participants to better understand their plan funding, the different support categories they can use, and what the price limits are for supports and services.
What are the key changes?
The 2023/24 pricing arrangements aims to improve flexibility and choice for participants, while also ensuring that providers receive fair payment for the services they provide. That being said, compared to the changes made to the 2022/23 pricing arrangements, this latest update is quite subdued.
One of the major changes in the pricing arrangements is a 5.3% increase in the pricing limits for disability support workers. There are several reasons the NDIA have shared regarding this change, including:
The Fair Work Commissions National Minimum Wage decision to increase minimum award wages by 5.75% (this includes support coordination level 1)
An extension of temporary loading at 1% for another year
Inclusion of paid family and domestic violence leave in the Disability Support Worker Cost Model (0.1% increase)
Passing on the increase in Superannuation Guarantee Charge of 0.5% in full.
It’s important for participants to note that this 5.3% increase down not necessarily mean that supports will cost more. However, to adjust for any pricing changes, funding for NDIS participants will be indexed from July onwards.
Price limits for therapy, plan management, and support coordination levels 2 and 3 will remain the same.
The outcome of the NDIA's Specialist Disability Accommodation (SDA) Pricing Review 2022-23 has also been released, with (evidently) significant increases across the board.
Top tip: It’s a good idea for both participants and providers to review service agreements prior to the new billing arrangements. This is a good opportunity to discuss what’s working and what’s not, negotiating prices and ensuring that both parties are on the same page moving forward.
For more information on how to navigate the Pricing Arrangements and Price Limits, click here.
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