Reduction of funding during NDIS transition - Disability Services, Department of Communities, Child Safety and Disability Services (Queensland Government)

Reduction of funding during NDIS transition

The Bilateral Agreement between the Commonwealth and Queensland for the transition to a National Disability Insurance Scheme (NDIS) sets out, amongst other requirements, the participant phasing schedule that will result in Queensland no longer providing disability services to those people whose needs are intended to be met by the NDIS. As such, departmental funding of specialist disability services and community care services will cease for existing clients who are eligible for the Scheme.

Cessation of funded support by the department will occur as part of a planned step-down reduction in line with the agreed phasing arrangements for transition to full Scheme from 1 July 2016 to 30 June 2019. Information regarding the progressive roll out of the NDIS in Queensland from July 2016 is available on the NDIS website.

As people transition to the NDIS and have an approved plan, the departments’ funding will reduce. Variations to reduce funding and services will be made in line with the Framework for the Reduction of Funding and Services through a Service Agreement (PDF, 142 KB) Framework for the Reduction of Funding and Services through a Service Agreement (DOCX, 17 KB) (the Framework).

An understanding of how the funding reduction will be applied can assist with the assessment of potential cash flow impacts for organisations as the source and timing of revenue changes. An organisations business practices may also need to be adjusted as the department ceases funding and services and there is an introduction of short payment provisions to recover overpayments.

Overpayments will occur as the department is continuing to provide funding payments quarterly in advance, and, people will transition out of state arrangements into the NDIS at different times throughout a quarter.

There are four different treatments in the Framework to manage the reduction across a variety of service delivery models and funding arrangements. The application of the Framework by the department and the calculations to determine the reduction and recoupment amounts will be based on the contracted funding and services.

As reductions are effected the department will give formal notice under the Service Agreement including specific information about;

  • the service user/s whose state funded service delivery has ceased and the date of cessation
  • the value of funding reduction
  • the type and quantity of output reduction
  • payment summary details (including short payment amounts and related funding cessation)

During May and June 2016 the department held information sessions for funded organisations regarding the Framework. Following on from the sessions a questions and answers guide (PDF, 529 KB) questions and answers guide (DOCX, 494 KB) has been developed as an information source to assist with understanding how the funding and service reduction will occur. If your organisation was unable to attend an information session or you have any queries regarding the funding and service reduction please contact your regional contract manager at a Regional Disability Services Office.

Disability Services Recourse

As the Framework for the reduction of funding and services is automatically applied based on the contractual information the department holds pro-active management by both the department and organisations is essential to make sure the information held by the department is always reflective of the service delivery arrangements agreed throughout the NDIS transition. 

If there are reasonable circumstances where, despite pro-active management, a reduction is not reflective of the service delivery which has occurred, an organisation can request the department reconsider the amount of service or funding reduced in their Agreement and/or the amount of funding recouped due NDIS arrangements.

To be eligible for consideration an organisation will need to evidence that there was a true and reasonable basis for the service provision and use of funding. Recourse is only available for situations where:

  • the information held by the department was not reflective of the service delivery arrangement; or
  • the application of a daily pro-rata reduction of funding was not reflective of service delivery which has occurred.

recourse request form must be submitted along with supporting evidence within 20 business days of Notification being given.

 

Is your feedback

Please submit your comments on the department's Compliments and Complaints section.

Please submit your comments on the Queensland Government website Contacts form.