The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.N.03 National Disability Insurance Scheme (NDIS) amount

Definition

NDIS amount means an amount paid under the NDIS in respect of reasonable and necessary supports funded under an NDIS participant's (1.1.N.05) NDIS plan (1.1.N.06). Under the SSAct, NDIS amount has the same meaning as 'NDIS amount' in the National Disability Insurance Scheme Act 2013.

A means test exemption applies to NDIS amounts.

Explanation: NDIS amounts are to provide care and support for people with disability and are not for the NDIS participant's income support.

Act reference: SSAct section 23(1)-'NDIS amount', section 23(1)-'NDIS participant', section 23(1)-'NDIS plan'

Income test exemptions

  • NDIS amounts received by an NDIS participant as part of the participant's NDIS plan are exempt income in the hands of the NDIS participant.
  • NDIS amounts held by, or on behalf of, an NDIS participant to pay for future disability expenses under their NDIS plan are exempt from the deeming provisions of the income test.
  • Any actual returns that are earned, derived or received on NDIS amounts are exempt income and if they are held as a financial asset these amounts are also exempt from the deeming rules.

Example: NDIS participants who self-manage their NDIS amount in accordance with their NDIS plan may hold unspent NDIS amounts to pay for future disability expenses, and may earn interest on those amounts. This interest is exempt from the income test and is also exempt from the deeming rules.

Act reference: SSAct section 8(8)(jag) to (jah) Excluded amounts-general

Policy reference: SS Guide 4.3.2.30 Income exempt from assessment - legislated

Asset test exemptions

NDIS amounts, and actual returns on NDIS amounts, that are held by, or on behalf of, an NDIS participant to pay for future disability expenses under their NDIS plan are:

  • an exempt asset
  • not a liquid asset.

The National Disability Insurance Agency is responsible for administering the NDIS. A participant who receives an NDIS amount, or a person who receives an NDIS amount on behalf of a participant, must spend the money in accordance with the NDIS participant's NDIS plan. Under NDIS business requirements, NDIS amounts should be kept in a separate account.

Due to the nature of the means test exemption for NDIS amounts, income support recipients who are NDIS participants are not required to notify the receipt of NDIS amounts, how NDIS amounts are spent, or about accounts holding only NDIS amounts.

Act reference: SSAct section 1118(1)(sb) Certain assets to be disregarded in calculating the value of a person's assets, section 1118(1AD) NDIS amounts, section 9(1)-'financial investment', section 9(1)-'designated NDIS amount', section 19B(i) the sum of NDIS amounts …, section 9A(7)-'liquid assets'

Policy reference: SS Guide 4.6.2.10 General provisions for exempt assets, 4.4.1.40 Exemption of Financial Investments from Deeming, 1.1.L.50 Liquid assets, 4.2.5 CP income & assets tests, 4.9.2.60 Sections 9A (Lifetime) & 9B (Life Expectancy) of the SSAct Applying Prior to 20/09/2004, 3.1.3 Notification & recipient obligations

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