If you have to choose between managing your own NDIS funding or using a plan manager, this guide puts the two side by side. We cannot tell you which is right for you. We can help you ask the right questions.
For the three-way comparison that includes NDIA-managed funding, see self-managed, plan-managed and agency-managed funding.
The short answer
Both options let you choose registered or unregistered providers. Both keep you in charge of what you buy. The main difference is who does the paying and the paperwork.
With self-management, you do. With plan management, a registered plan manager does. The NDIS says self-management gives you the most flexibility. Plan management gives you choice with less admin.
Side by side
| Self-managed | Plan-managed | |
|---|---|---|
| Who pays providers | You, your nominee or child representative | Your plan manager |
| Records | You keep invoices and receipts | Your plan manager keeps them |
| Providers | Registered or unregistered | Registered or unregistered |
| Funding for a plan manager | Not used. You do the work | Funding for a plan manager is in your plan |
| Reports | Your own tracking | Monthly statement from your plan manager |
The key point: in both cases you stay responsible for spending only on supports that fit your plan.
What self-management involves
The NDIS says you are responsible for several things. You manage your funding and make sure it lasts the whole plan. You make clear agreements with your providers. You claim and pay on time. You keep invoices and receipts. When your plan ends, you show how you used the funding.
The NDIS says there are two ways to pay when you self-manage. You can make a payment request and then pay your provider from your bank account. Or you can pay with your own money first and then request payment.
There are also benefits. You can negotiate prices and directly employ or contract your staff. The NDIS says its maximum prices apply only to NDIA-managed and plan-managed participants.
What plan management involves
A registered plan manager pays your providers and keeps your records. They check claims, watch your budget, and send you a monthly financial statement. They ask for your approval before they submit claims.
You still choose your providers, including the plan manager. You still agree a service agreement with them. You can still negotiate prices with your providers, up to the maximum.
Our guide to what a plan manager does covers the role in more detail.
Questions to ask yourself
There is no right answer. These questions can help.
- How much time do I want to spend on invoices and records?
- Do I have someone, like a family member or nominee, who would help?
- Do I want to hire and pay workers directly?
- Do I want a monthly statement I did not have to prepare?
- Would a mix suit me better?
Some people can't self-manage. The NDIS lists reasons, such as certain convictions or if it thinks self-managing would pose an unreasonable risk. Your planner can talk this through.
Mixing the two
You do not have to pick one for the whole plan. The NDIS gives the example of self-managing core supports and keeping another budget NDIA-managed. You could also self-manage one budget and plan-manage the rest.
Ask about this at your plan meeting. A mix can let you try self-management with a safety net.
A short example
Leo self-manages his community activities because he likes choosing his own workshops and clubs. Each month he pays and keeps receipts. For his therapy, he uses a plan manager who pays the invoices.
After six months, Leo finds the receipts take too long. He asks his NDIS contact to move his core budget to plan management too. The NDIS can often do this by changing his current plan, without waiting for a full new plan.
Changing your mind
You can ask to change how your plan is managed at any time. The NDIS says there is no limit on how often you can ask. If it is the only change you need, the NDIS can typically make a plan variation without a full plan reassessment. See how reassessment differs from a variation.
If you move to plan management, our guide on how to find a plan manager is a good next step. The glossary also explains self-managed and plan management types.
Costs and risks to think about
Neither option is free of trade-offs. Think about what each one asks of you.
With self-management, the main cost is your time and attention. The NDIS says you must keep invoices and receipts, and show how you used your funding when your plan ends. A mistake is your responsibility. You can ask for help to build your skills, and the NDIS can include supports or strategies in your plan to reduce the risk.
With plan management, the main trade-off is that someone else handles the payments. You still need to check each claim and approve it. You also choose your plan manager and manage that relationship. If they get something wrong, you need to speak up.
In both cases, the NDIS says you are responsible for knowing how much you have spent. You can check your balance at any time in the participant portals or the my NDIS app. If you think someone has made a mistake, call 1800 800 110.
On Goodo
If you want to hear how other people made this choice, you can put your question on the Goodo list and we will email you when your area opens.
About this guide
Goodo is independent. We are not part of, or endorsed by, the NDIA or the NDIS Quality and Safeguards Commission. This is general information, not advice. Rules change, so check ndis.gov.au or call the NDIS on 1800 800 110 about your own situation.
Frequently asked questions
Is self-managed or plan-managed better?
Neither is better for everyone. Self-management gives the most flexibility but means you pay providers and keep records. Plan management hands the payments and records to a plan manager. The right choice depends on your time, confidence and support.
Can I use unregistered providers with both options?
Yes. The NDIS says you can choose unregistered providers if you self-manage, or if you use a registered plan manager. Some supports, such as supported independent living, must still come from registered providers.
Can I switch between self-managed and plan-managed?
Yes. The NDIS says you can ask to change how your plan is managed at any time, and there is no limit on how often. You do not have to wait for a new plan. The NDIS can update your current plan if it agrees.
Can I do a bit of both?
Yes. The NDIS says you can combine management types. For example, you can self-manage your core supports and have the rest plan-managed or NDIA-managed. You can talk about the mix at your plan meeting.
Do I get funding for a plan manager if I self-manage?
Funding for a plan manager is included when your support budgets are plan-managed. It is a separate funded support that can only pay for plan management. If you self-manage, you do not use it.
Sources
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