How the NDIS works

What the NDIS is

The National Disability Insurance Scheme (NDIS) is a publicly funded program administered by the National Disability Insurance Agency (NDIA) that provides individualised funding for people with significant and permanent disability official source (opens in a new tab) . Rather than funding a system of services, it funds the person: eligible Australians receive a plan specifying what supports they can buy, giving them genuine choice over how and from whom they receive help.

The scheme covers supports that are reasonable and necessary , meaning they relate to a person’s disability, represent value for money, and are not better provided through other systems such as health or education official source (opens in a new tab) . Everyday health costs continue to be funded through Medicare and state or territory services; the NDIS focuses on the additional, disability-related supports a person needs to live an ordinary life.

Who can access it

To be eligible for the NDIS, a person generally needs to meet three criteria official source (opens in a new tab) :

• Age: under 65 years old at the time of first applying.
• Residency: an Australian citizen, permanent resident, or holder of a Protected Special Category Visa who lives in Australia.
• Disability: a significant and permanent impairment that substantially reduces functional capacity in one or more areas of daily life, such as communication, mobility, self-care, or social interaction.

People who acquire a significant disability after turning 65 are generally supported through aged care pathways rather than the NDIS. Early intervention criteria also exist for children and for people whose condition, if left unsupported early, would likely result in greater need later official source (opens in a new tab) .

How a plan works

Once a person is approved, the NDIA works with them to develop a personalised NDIS plan. The plan records the participant’s goals and sets out a budget across three broad support categories: Core Supports (everyday assistance and participation), Capacity Building (skill development and independence), and Capital Supports (assistive technology and home modifications) official source (opens in a new tab) .

Participants use their plan budget to purchase supports from providers or individuals they choose. Plans are reviewed regularly, typically every twelve months, or sooner if circumstances change. Detailed guidance on plan types, budgets, and review processes is covered in the plans and funding guides in this resource hub.

Who delivers supports

Supports under the NDIS are delivered by providers, which can be organisations or sole traders. Providers fall into two broad categories official source (opens in a new tab) :

• Registered providers have been audited against the NDIS Practice Standards and approved by the NDIS Quality and Safeguards Commission. They can work with all participants regardless of how a plan is managed.
• Unregistered providers have not gone through the registration audit. They can still deliver many types of NDIS supports, but only to participants who self-manage or plan-manage their funding.

How a participant manages their plan also shapes the provider relationship. Agency-managed participants have their funds administered directly by the NDIA and must use registered providers. Plan-managed participants have a registered plan manager handle payments on their behalf and can use both registered and unregistered providers. Self-managed participants handle their own funds and have the broadest provider choice. The registration guide in this hub covers what registration involves and whether it is right for your organisation.

Where to go next

The basics category has several guides that build on this overview:

• Eligibility in depth covers the NDIS access request process and what evidence is typically needed.
• Understanding NDIS plans walks through plan types, budget categories, and what participants can and cannot use their funding for.
• Provider registration explains the audit and approval process for organisations wanting to become registered NDIS providers.
• Plan management options compares self-management, plan management, and agency management from both participant and provider perspectives.