Thousands of Australians living with a disability may be forced to reduce their support services under recent changes to the Temporary Transformation Payment (TTP) made by the National Disability Insurance Agency (NDIA).
Amicus is outraged by the surprise amendments, which came into force on October 1, and is calling on the federal government and NDIA to reverse the decision immediately.
What is the Temporary Transformation Payment?
Earlier this year, the NDIA announced that from July 1 a higher support price limit would be introduced from through a special payment for registered National Disability Insurance Scheme (NDIS) providers offering attendant care, and community and centre-based activities. This payment was called the Temporary Transformation Payment or TTP. The purpose of the payment was to help organisations with the significant expense of transitioning to the NDIS and providing services under the new scheme, including the cost of implementing new IT systems, restructuring programs and hiring additional staff
What changes have been made to the Temporary Transformation Payment?
Initially, the NDIA pronounced that participants who accessed NDIS-funded services from organisations claiming the TTP would be no worse off, receiving extra funding in their NDIS plans to avoid a reduction in service.
In September, it revealed this was no longer the case. NDIA has reneged on its promise, with participants now expected to absorb the increased costs without any compensation.
As a result, participants will see a weighty reduction in the level of support services they can purchase as part of their NDIS plan.
People whose NDIS planned rolled over between July and October will be subject to further inconvenience, with organisations now having to choose between absorbing the extra cost of delivering their services or asking them to forgo services that were previously agreed.
Thankfully, Amicus participants caught in the crossfire will not need to forgo services with the organisation taking it upon itself to shoulder the additional costs for non-indexed participants to ensure no one is disadvantaged by the snap decision.
However, going forward, Amicus will need to charge participants whose plans are indexed in line with the requirements.
Why have changes been made to the Temporary Transformation Payment?
Changes to the TTP were communicated to the sector by the peak body National Disability Services. As yet, there’s been no official confirmation from the NDIA to the extent of the amendments.
However, it’s understood NDIA’s rationale for the backflip is the belief that many participants do not use their entire NDIS allocation and will not notice an increase in the cost of their services.
Amicus has made multiple attempts to contact the NDIA for clarification but is yet to receive a response.
How will change to the Temporary Transformation Payment impact Amicus and other NDIS providers?
As well as leaving disabled Australians with fewer services, modifications to the TTP have taken many disability service providers by surprise, and have no doubt, left many organisations out of pocket.
Sadly, Amicus is no longer in a position to start several planned projects until the final decision of the NDIA is known. A backflip on the original TTP scheme may delay some projects while others may be shelved entirely.
Also, Amicus has resolved to absorb the additional costs associated with delivering previously agreed services for non-indexed participants whose NDIS plans were rolled over between July and October to ensure the shock NDIA decision does not disadvantage them.
This unforeseen expense is necessary to continue delivering exceptional participant and community outcomes but will impact on other areas of the business as we find savings elsewhere.
Will Amicus advocate for the Temporary Transformation Payment modifications to be repealed?
As a leader in the disability sector, Amicus will lobby the federal government and NDIA to undo its amendments to the TTP immediately.
Amicus has already written to the five federal members of parliament representing the electorates within its geographic catchment area expressing its outrage and seeking their advocacy to resolve the issue.
Should you wish to support Amicus in this crusade, please write to your local member of parliament and ask them to help the thousands of local people living with a disability by advocating for the reversal of these unfair changes.
If you have any concerns or would like to speak to a member of our team about these changes, contact our Intake Team on 03 5441 2666.
- Kath Bolitho
- 0407 422052