🖤 This article provides advice on understand the risks of not spending in-line with your NDIS plan.
It's important to note that Item 75 Subsection 46(1) of the NDIS Act (2013) identifies that there is a requirement to spend money in accordance with a plan, which means that any specifications or limitations set out in a plan must be complied with. For example, if funding periods are specified in a participant's plan, they are required to comply with those and not exceed the funding allocated in those funding periods. If these conditions are not met, there is a personal and financial risk related to spending outside the law.
Misusing NDIS funds can lead to serious consequences. Here's a breakdown of some potential risks:
- being liable for the return of funds (debt collection from Plan Manager or NDIS)
- plan becomes Agency Managed and the only have access to NDIS Registered Providers
- plan funds are reduced
- Legal action.
The NDIS actively monitor and investigate potential misuse. The NDIS can support you to spend within your Plan. A NDIS Plan Manager can support you to know when to gain further advice to avoid becoming personally liable.
The NDIS aims to ensure funds are used to support participants in achieving their goals. Anyone who is intentionally dishonest and commits fraud to gain a benefit is placing themselves in a significant position of risk. This can include such actions as getting a service provider to write different supports on an invoice which were provided or having a financial gain. Fraud is a crime and can lead to criminal charges, including fines and imprisonment. Civil penalties may also apply.
Tips for Spending Your Plan Safely
You do need to ensure the plan is spent how your plan was intended to be used. Here are some tips to keep you on track:
1. Follow Your Plan
A Plan Manager will only be able to process supports which are in line with your goals and approved in your NDIS plan. The supports much be written into your plan, or you will need NDIS Delegate consent to continue this support, e.g. Alternative therapies (such as massage), linen service, equipment rental and taxi use without the Transport budget. Funding period budgets must also be adhered within.
2. Seek Advice
Please contact the NDIS to gain advice about how to spend within your plan correctly. Your best contact is your 'My NDIS Contact'.
Through following these steps, you can avoid any serious consequences.