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Agency ices new group pricing regime

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2/06/2021

What you need to know

  • Providers do not need to transition to the new group pricing methodology until 1 July 2022
  • Transition to the new pricing regime can occur anytime from 1 July 2021
  • NDS will continue advocating as necessary

In a big win for maintaining sustainable supports, NDS is very pleased to report that following our sustained advocacy, members will now not have to transition to the new group price methodology from 1 July 2021.

This welcome announcement follows a consistent program of engagement with Minister Reynolds' office, and the NDIA's pricing team over an extended period. We acknowledge the interest of Minister Reynolds and her staff, together with the Agency, in hearing our concerns on this issue.

The decision means providers can continue operating under the current guide until 30 June 2022, or transition to the new pricing anytime from 1 July 2021.

While some providers report the new price guide will suit their operation, modelling by others revealed group supports would not be sustainable, leading to their withdrawal. The consequences for participants are obvious, and being forced to turn to individual support (if it is available), more costly overall for the Scheme.

The NDIA anticipates providers will progressively transform their models over the course of the year in anticipation of migrating to the new price structure. NDS remains concerned about the capability of all members to do this and will continue advocating on your behalf as necessary in the context of other discussions with the Agency regarding group services and their capacity to support people with disability to achieve positive outcomes in their lives.

Contact information

For any enquiries, please contact Philippa Angley, Head of Policy, 03 8341 4302,