Funding Agreements

Provisions in the Disability Services Act 2011

The new Act talks about Funding Agreements with organisations or private person for the provision of specialist disability supports or services. The Act says that a funding agreement must specify:

• the services to be provided
• compliance with the Principles and Standards
• compliance with other standard terms and conditions
• the period covered by the Agreement.

This is consistent with the Disability Services Act 1992.

There are some additional provisions in the new Act that relate to the funding of private persons (individuals) and the inclusion of Individual Plans in Agreements.

Funding Private Persons

The Act enables the Secretary of the Department to enter into Funding Agreements with a private person with disability, or a person that is nominated by a person with disability.  Such Agreements must specify the specialist disability services to be financed by the grant, the intended outcomes, other terms and conditions of the grant, the rights of the person entering the Agreement and the period of the Agreement.

In the old Act, funding was limited to the provision of grants to organisations. This allows the Secretary to enter into Agreements with individuals who wish to manage their own package of supports.

Funding Agreements and Individual Plans

[See Disability Services Act 2011 Planning & Reporting]

The Secretary may ask that an approved Individual Plan is prepared by, or on behalf of, the person with disability as a term or condition of a Funding Agreement.

This may apply to each person with disability to whom specialist disability services are provided or each person with disability who will be receiving specialist disability services of a specific kind or type.

For Funding Agreements with private persons the Secretary may request that there is an Individual Plan for the person with disability.

There was no provision in the old Act for Individual Plans to be in place as a term or condition of a Funding Agreement.

State and National Developments – Self Directed Funding

The Productivity Commission's Inquiry into Disability Care and Support recommended people with disability be given choice and control over their funding. Developments to establish the National Disability Insurance Scheme are focussed on achieving this.

Disability and Community Services are running a Self-Directed Funding pilot to provide funding options to support people with disability who want to change the way they receive funding for their supports.

A Self-Directed Funding Working group has been established and Reference Group has been formed to support the Working Group and to make sure all stakeholders know about this new process.