Firstly, welcome to the world of NDIS. You have entered during an interesting period of change. You may now be wondering how to engage with supports to reach your goals. The first thing is to look at how you are managing your funds.
There are three ways NDIS funds are managed.
Agency-managed participants can only use NDIS Registered providers and cannot pay more than the NDIS Pricing Arrangements and Price Limits.
Plan-managed participants can use registered or unregistered providers but cannot pay more than the rates set in the NDIS Pricing Arrangements.
Self-managed participants have the flexibility to pay any price they negotiate and use any provider they want. They may need to pay a portion out of pocket if their agreed rate is higher than the price guides.
Agency-managed participants have very little wiggle room when it comes to the negotiation table. They are also restricted to a smaller number of providers to choose from, but these providers are more highly regulated and submit to mandatory audits as directed to maintain their registration. NDIA also makes it easier to find a registered provider by maintaining a handy list that you can look at here: https://www.ndis.gov.au/participants/working-providers/find-registered-provider/provider-finder. Some providers may have waitlists, especially for niche services, so this is also something to keep in mind when deciding who to use.
Self-managed participants and, to an extent, plan-managed participants have the opportunity to engage their own independent Disability Support Workers directly as contractors. They can look at large and small companies, registered and unregistered. There are pros and cons when deciding whether to hire a large provider, a small provider or independent. Larger companies can offer more oversight, but care may be less personal; small companies can be a bit more personal but may lack flexibility. Independent Support Workers can provide unique skills and experiences but also may lack the ability to cover all shifts required. This requires you to look at what your priorities and needs are.
Many large and small providers are easily found through word of mouth, on Google searches and at events like the Disability expo. Most new participants start with a provider to learn how things work and what services should look like. Not all providers are equal, so it is always important to maintain boundaries. Some people prefer to hire independents because they are looking for specific skills or want more flexibility to negotiate. Independent workers can be found through word of mouth, forums, social media such as Facebook groups and through online advertising.
By contracting your own support workers, you have more control and flexibility over who supports you. However, this means you take on the role of employer with all the legal responsibilities that that entails, including negotiating pricing. Pricing conversations with potential support workers can be uncomfortable and stressful. You may feel uncertain about negotiating rates or unable to match the quality of the support with the price. Never fear, start by reading Ideas for Negotiating for Non-Negotiators and you’ll be a pro in no time!
Here are some additional pointers.
Before negotiations with any provider or independent
It is important to do a little research. The more knowledge you have, the more confident you will be.
You should be clear about:
- Your support needs
- Type of support worker you want
- What are you offering as a participant
In addition, become familiar with:
- The relevant pay levels and classifications of the SCHADS Award for your required level of support. This is the rate service providers pay their support workers.
- The NDIS Pricing Arrangements and Price Limits for your category of supports. This is the maximum rate the NDIS deem reasonable for a service provider to charge you for providing supports.
- The additional costs of Independent Support Workers, e.g. paying their own tax, superannuation and business costs vs large and small providers with their overheads and admin fees.
This knowledge will provide you with the confidence to hold a conversation with your support worker or provider that has a positive outcome for everyone.
What if my independent support worker is demanding full rates?
The independent support worker has the right to set their rate; you cannot simply tell them what you will pay.
HOWEVER
Not all independent support workers are created equal. So simply use your knowledge and newfound confidence. Ask them to provide you with a breakdown of how they have arrived at this rate. Ask for skills, years of experience and qualifications and ask them to identify the level of support in the SCHADS Award that they consider their skillset and experience match.
With that information, you can determine what you may be willing to pay for services from that worker. There are definitely some workers out there worth their weight in gold, and there are others who may be new to the industry and who are just finding their feet.
If they provide this information and you can come up with a figure in your mind of what you are willing to pay, you can see if they are willing to come down closer to your expectations. In some cases, if your budget is very small, you can explain that your NDIS plan is budgeted for x number of months. Paying full rates would mean you could not afford the hours of support you require. If your support worker, and in some cases, providers can see how your budget is specifically calculated to meet your needs, they may be willing to compromise at a lower rate to ensure the longevity of services.
In the same vein, we do not want Independent Support Workers getting ripped off. After costs, if they are getting less than $49.00 per hour, they would financially be better off working for a provider. Depending on their overheads and how many hours per week they are working, most break even at $52.00, which is much less than the $67.00 full rate. This is good news as it allows for wiggle room to stretch your negotiating muscles to negotiate a rate that makes both you and your support worker happy.
On the same note,e NDIA doesn’t always take a realistic approach to choosing the number of hours it will fund. If you are finding it near impossible to successfully negotiate a rate that will allow you to have the hours you need at a price that will be sustainable for your entire plan period, a review may be needed.
A Final PSA
Always make sure you have a professional Service Agreement drawn up that clearly states the services being provided, the rates charged and termination of agreement details. Service agreements protect both the worker/provider and the participant. If you are unsure about a Service Agreement, they are negotiable and you can always create your own as shown in Service agreements and you: What do you need to know?