Once funding for the NDIS has been approved, a participant can choose to manage their plan in one of three ways: agency managed, self-managed and plan managed.
According to the NDIS's Annual Pricing Review Report 2024-25, the proportion of NDIS participants using plan management has been steadily increasing. In the six months to December 2024, 65% of all active participants used plan management to process NDIS payments, which is an annual increaser of 12.1% and a 46% increase since early 2022.
There are benefits and drawbacks to each of the funding management approaches.
If you’re considering using the plan managed option, this guide is designed to help you understand all the aspects of using an NDIS plan manager to help with your NDIS plan.
What is NDIS plan management?
Plan management is when a provider supports you to manage funding in your NDIS plan. These providers are known as plan managers.
This means that your plan manager can purchase supports on your behalf. They will receive funds from the NDIA and disburse those funds as required.
They will monitor and manage your NDIS budget, manage your claims and pay providers for their services, and give you regular statements about how your NDIS funds are being spent.
Plan management is different from having the NDIA manage funding in your plan (agency managed) or choosing to self-manage. Plan Managers are funded through the NDIS, and they exist to support and provide guidance and support to NDIS participants.
Plan managers can offer two types of services to an NDIS participant: financial administration of their plan, and capacity building support for NDIS plan and financial management. This helps support people looking to become more independent as part of their NDIS plan.
Why choose a plan manager?
The NDIS is designed to help make day-to-day living easier for those who experience permanent disability.
But managing the financial requirements of an NDIS plan can be overwhelming and confusing.
Having a plan manager helps to offload some admin-related tasks around an NDIS plan. Things like keeping track of financial records and invoices, lodging claims with NDIS, and navigating the NDIS can all be handled by a NDIS Plan manager on your behalf.
There are plenty of benefits to using plan management. Here are some of the biggest reasons to choose a plan manager.
Registered and unregistered providers
Plan management providers are themselves required to be registered NDIS providers through the independent NDIS Quality and Safeguards Commission. They also must be approved under the ‘Management of funding for supports in participants plans’ registration group.
Where agency-managed plans are required to use NDIS registered providers for all aspects of their plan, people using plan managers (or self-managed plans) can also use unregistered providers to access supports for their plan.
It’s worth pointing out that unregistered NDIS providers are still bound by the NDIS code of conduct, and must adhere to NDIS price control arrangements.
For NDIS participants, this means that having a plan managed NDIS plan offers a broader range of access to service providers, without having to monitor the finer details of their plans’ administration.
Manage your NDIS funds
Managing a budget isn’t always the easiest process. Having a plan manager take care of things like paying service providers, doing monthly financial reporting and keeping track of your NDIS funds can help you benefit from the NDIS without getting bogged down in the specific details.
Plan managers will maintain records for you and send you a regular report showing the financial status of your plan.
Plan managers work with you to understand your specific needs, helping make sure you are getting the most from your NDIS plan. That means helping find the best services and supports so you can achieve your goals.
There aren’t any costs to you
NDIS Plan managers are funded directly from your NDIS plan, but is separate from reasonable and necessary funding of your NDIS disability supports.
The funding for your plan manager includes an establishment fee and a monthly processing fee, and to claim that establishment fee, there has to be a meeting between the plan manager and the NDIS participant.
A plan manager can help you become more independent
In addition to helping NDIS participants by managing their funds, plan managers can also help them become more independent by teaching them how to become more financially independent.
This includes helping them understand the types of services and supports they can claim with their plan, as well as improving their understanding of the NDIS price guide.
Plan management providers are required to have policies and processes in place to help ensure that they are working primarily to assist the NDIS participant, without seeking to further their own financial interests.
It’s also worth noting that funding for this support is separate to funding included in a participant’s plan for plan management services. It focuses on strengthening a participant’s ability to undertake tasks associated with the management of their supports.
You aren’t locked in
NDIS participants can change their NDIS plan manager, or switch to a self or agency-managed plan, at any time during their NDIS plan. They just have to comply with the notice period in the service agreement they sign at the commencement of their plan management.
For some people, plan management is a stepping stone to becoming more independent wth their finances, helping them gain the required skills to self-manage.
How to switch to NDIS plan management?
The NDIS is designed to give people choice in achieving their goals, and the same is true with how the financial aspects of their NDIS plan are managed.
You can make the request to have one or more of your funded supports plan managed during your planning meeting. When this happens, separate funding is included in your NDIS plan to pay for the plan manager.
If you already have an agency-managed or self-managed NDIS plan, you can request a transition during a plan review meeting with your Local Area Coordinator (LAC). If your next plan review meeting is still a while away, you can still request a “light touch” review to begin the process of transitioning to plan management.
You might want to share your reasons for wanting to switch to a plan managed approach, as it may help accelerate the process. Either way, once the request is processed, someone from the NDIS or your LAC will let you know, and you can then find a plan manager to manage your NDIS plan for you.
How do I find the best plan manager for my needs?
Choosing the right plan manager for your needs can be an important choice, but it doesn’t have to be a difficult one.
Once you’ve decided to use a plan manager, you can discuss the different options with your local area coordinator or support coordinator and see if they have any recommendations.
Also seek recommendations from your family and friends. If your immediate contacts aren’t on the NDIS, see if they know anybody who is, to try to find a recommended plan manager.
If neither of those options suit your needs, you can use the Provider Finder tool on the NDIS website to help identify local plan managers. It’s always worth taking a moment to look for independent reviews of these providers to understand how their existing or past clients have rated their services.
Have your plan manager work with Like Family
Like Family is a registered NDIS provider that can support you with five different NDIS support categories across the Core supports and Capacity Building areas.
Our team of NDIS Social Carers can help provide assistance with daily life, assistance with social and community participation, improved daily living, improved health and wellbeing and increased social and community participation.
If you’re looking to get a bit of extra help from a friendly face, discuss how Like Family can be a part of your NDIS journey with your plan manager today.
FAQ
What happens when NDIS funds run low with plan management?
Your plan manager should supply you with regular reports and statements, so you have oversight into how your NDIS funds are being spent. But if you are either spending too much or not enough on an area of your NDIS plan, the plan manager should contact you to discuss, regardless of reporting frequency. They should not communicate that to your provider, instead empowering you to communicate it with them to adjust your support as necessary.
How does a plan manager look after funds?
Plan managers don’t get access to your NDIS plan funds up front. Instead, they submit claims on your behalf after an invoice or receipt has been issued and sent to them. Plan managers are expected to validate and submit payment requests to the NDIA within five business days of receiving your invoice or receipt.
Does a plan manager help decide what is reasonable and necessary?
No, reasonable and necessary supports are approved during the planning stage. A plan manager is there to ensure your plan is being implemented as it’s supposed to be. This means that you are spending the funds on the supports they are meant for.
What happens if there aren’t enough funds to cover an invoice?
Ideally, a plan manager should identify situations where you are potentially going to overspend. They can discuss with you the best way to use those approved funds. But if the money is being spent faster than anticipated, and you need more funds, you need to contact the NDIS to discuss your options. Your plan manager won’t do that for you.
What’s the difference between a plan manager and a support coordinator?
Plan managers and Support coordinators fulfil different roles. Plan managers ensure providers get paid for their support, while helping you monitor your spend and offering financial reporting. Support coordinators help you understand what is included in your plan and how to implement them. They will connect you to providers to get the support in the first place.