12/04/2023
When the Plan money runs out!
What happens if you accidentally (or even deliberately!) spend more money than is in your NDIS plan?
If your plan is Agency Managed, there should never be an overspend, because your providers will have service bookings (not service agreements) on the NDIS portal which can never add up to more than the dollar amount in your NDIS plan. If you use providers who are not Agency registered, or you ask for service without a service booking in place first, YOU will be responsible for that bill.
If your plan is Self or Plan Managed, there is nothing that prevents you from overspending, or overcommitting, and if you do run out of NDIS plan funds, **YOU** will be responsible for paying any extra bills.
While your Plan Manager can (and SHOULD) help you keep track of your NDIS budgets, they're not responsible if you overspend, so you'll need to track your spending and manage your budgets carefully. Also, be aware that many providers do not bill in a timely manner, and some Plan Managers do not pay in a timely manner, so your budget levels as listed with the Plan Manager might NOT be all that accurate.
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Here are just a few ways to help you stay "safe" and prevent overspending.
1. Always request and require a copy of the invoices from your provider yourself - never have them "just send to the Plan Manager".
2. If you are getting near to the end of your plan and you think you'll be "cutting it close", request and require up to date invoices from your providers a month before the plan ends.
3. At the beginning of your plan, if possible (and it won't always be), set aside 5-10% of your NDIS plan budgets as "emergency funds" to be used through the year if a crisis or awesome opportunity arises that means you need extra support for a period (if it's an ongoing situation, be sure to ask for a "Change of Circumstances" reassessment review). That way, you should have a buffer at the end of your plan in case you overspend a little, and you also have extra funds to use to stock up on consumables or low cost assistive technologies, or some extra support for trips out and about or whatever, in that final month of your plan.
IDEA: Can I also suggest that you send an email to the NDIS feedback people, and to your local MP, and the NDIS Review (https://www.ndisreview.gov.au/) which asks them to change the NDIS to allow for a 5% over OR underspend to be able to carried over to new plans.
If you want to know more about what happens at the end of NDIS Plans, check out this video series (or read the transcripts and use the handouts) at https://www.thegrowingspace.com.au/plan-reviews-1/ - it’s FREE info presented directly by our own Sam Paior!!
Pic desc: a man wearing a white t'shirt, frowning, holding out the insides of his empty jeans pockets
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