Schedule 4
The needs assessment and the funding method
From 27 August 2026 a new framework plan must be funded by applying the needs assessment to a method in the rules, the method may set levels of need and maximum amounts, and a discretion is expressly allowed where the participant receives a compensation payment or insurance funded injury supports.
What does the provision require?
The Schedule adjusts the new framework planning provisions inserted by the 2024 amending Act. The CEO may revoke a notice that a participant is to move to new framework plans where it is not reasonably practicable to prepare one, and the notice is then taken never to have been given. The plan must state the funding provided for the management of the funding under the plan. A new requirement lets the rules require the CEO to be satisfied of matters about the acquisition or provision of supports.
Section 32K is restructured so the total funding for flexible funding and for each stated support is worked out by applying the information in the needs assessment report in accordance with the method in the rules. The method may identify supports and levels of need, may specify funding amounts for a level of need, may set a maximum, and may allow the CEO to exercise a discretion where the participant receives a compensation payment or supports funded under an insurance scheme or a Commonwealth, State or Territory law. The assessment must have regard to information requested under section 36 and to prescribed information, and must not have regard to information the rules exclude. Assessed disability support needs leave out the cost of managing plan funding. The assessment must be undertaken by Agency staff, a consultant engaged by the Agency, or a person the rules prescribe.
Why does it matter to an insurer or a provider?
This is where a compensation payment meets NDIS funding. The Act expressly allows the rules to give the CEO a discretion when a participant receives a compensation payment or insurance funded injury supports, which is a route an insurer should expect to be used. The needs assessment also cannot count the cost of managing the funding, so a plan manager's fee is funded separately and is not part of the assessed need.
What did the amendment change?
The 2024 new framework provisions are adjusted in five places: the revocation of a move notice, the funding for plan management in the plan, the CEO satisfaction requirement, the restructure of the funding method with levels of need and maximums, and the assessment rules including the exclusion of funding management from assessed need.
Suggested evidence
These are the publisher's control suggestions, not statutory requirements. The provision's own requirement is above; an auditor or regulator decides what is sufficient.
- The needs assessment report and the information it had regard to
- The method in the rules that was applied, and the level of need identified
- Any maximum amount applied and the arithmetic
- The record of any compensation payment or insurance funded support, where a discretion was exercised
- The funding for management of the funding, shown separately in the plan
What should be done before the date?
- Ask whether the insured participant receives a compensation payment that could trigger the discretion
- Check the funding for plan management is separately identified in the plan
- Record the method and level of need in any reserve that depends on plan funding
What the text does not say
The text does not set the levels of need or the funding amounts; they are in the rules. It does not say how the discretion will be exercised where a compensation payment exists. It does not define insurance funded injury supports.
Where this sits
sections 32B, 32D, 32H, 32K and 32L, amended by items 1 to 14 in Schedule 4, New framework planning (items 1 to 20). Read the official text at https://www.legislation.gov.au/C2026A00066/latest/text. The record was read on 21 October 2026.
Not legal advice; does not certify. This page is a reading of the provision in our own words, not a reproduction of it, and not advice on your own facts.