Calculating NDIS Budgets: Tools & Tips for Providers

As an NDIS provider, support worker, or plan manager, you’re responsible for providing your clients with quality supports and services. As part of your role, you want to make sure that your clients are able to get the support they need based on the funding they’ve been provided. This is where calculating NDIS budgets comes in handy.

Each year, the NDIS updates its Pricing Arrangements and Price Limits, which detail how NDIS supports will be funded for the upcoming year. That said, these prices are often updated throughout the year too. Ultimately, the purpose of these price caps is to help participants get the most out of their NDIS funding while supporting fair access to essential services across the board.

This article will provide guidance for NDIS providers and support workers to help them calculate a budget for their clients.

Understanding the components of NDIS budgets

Each NDIS participant has different needs and goals. These factors are taken into account when determining the level of funding that’s considered reasonable and necessary to help them work toward their goals.

NDIS participants may have funding for three types of support budgets as part of their plan, including core supports, capacity building supports, and capital supports. Here’s how they work.

Core supports

Core supports in the NDIS budget cover essential services that help participants with their everyday activities, allowing them to live independently and engage in their communities. These supports are broad and flexible, so participants often have the option to choose services that best meet their needs.

The core budget encompasses four support categories:

1. Consumables,
2. Daily activities,
3. Assistance with social and community participation, and
4. Transport.

Capacity building supports

The capacity building budget spans eight sub-categories that are designed to support the goals detailed within a participant’s NDIS plan. When it comes to capacity building supports, participants can’t move funding from one support category to another, unlike core supports.

Capital supports

The capital support budget is intended to cover the cost of assistive technology and home modifications. The funds covered by this budget can only be used for their intended purpose and can’t be used to cover other supports.

Key factors to consider in NDIS budgeting

When it comes to calculating a participant’s NDIS budget, it’s essential to take a holistic approach by considering several key factors along with the amount of funding they have access to. These factors include:

• Participant’s plan goals: Each participant will have a range of unique goals set out as part of their NDIS plan. With this in mind, it’s important to align their budget to help them reach their goals while meeting their individual needs.
• Support categories and funding allocations: Within each support budget are several individual support categories. Based on the participant’s needs and goals, you can allocate their budget to the relevant support categories.
• Service rates and price limits: The NDIS sets price caps for different NDIS supports and services. It’s essential to make sure your budget reflects the current pricing for each support item.

Tips for managing NDIS budgets effectively

Managing budgets can be challenging, especially when you’re working with a number of clients with different needs and goals.

Here are some practical tips to help you effectively manage NDIS budgets. By using thee tips, you’ll be able to ensure your participants get the most from their funding while staying compliant with your NDIS obligations:

• Prioritise essential services: Focus on funding services critical to the participant’s day-to-day living or long-term goals. Prioritise spending on supports that align with the participant’s primary objectives before accounting for other supplementary costs.
• Avoid overspending early on: It’s essential to pace the use of NDIS funds throughout the plan period, avoiding the risk of overspending in the early months. This ensures sufficient funding is available for services later in the plan, especially if additional needs arise.
• Regularly monitor expenses: Review the participant’s spending regularly to ensure you’re on track and not exceeding budget limits. Compare the actual costs with projected expenses and adjust the budget as needed to prevent overspending in any category.
• Stay up to date with the latest price limits: NDIS price limits are updated regularly, so it’s important to stay informed and update prices and budgets accordingly.
• Keep detailed records: Maintain detailed and accurate records of all expenditures, including invoices, receipts, and service agreements. This is essential for maintaining compliance with NDIS requirements and provides easy access to relevant documentation for audits or plan reviews.
• Conduct regular reviews: Participant needs often change, so it’s important to be flexible with the budget. Adjust it as necessary during plan reviews or when new support needs arise.

NDIS budgeting made easy with CareMaster

At CareMaster, we understand the importance of keeping your client’s budgets on track, which is why our NDIS software incorporates a range of helpful tools designed to assist with budgeting and the tracking of expenditures. Easily export a comprehensive list of services conducted for a selected participant, track participant expenditures, and create tailored alerts and reminders based on a participant’s funding.

To learn more about how our NDIS budgeting software can help with managing and automating budgeting tasks, book a demo with one of our CareMaster experts.

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