A Beginner’s Guide to Understanding NDIS Language
- May 15
- 7 min read
At LifeAbility Plan Management we understand that when your NDIS Plan is approved your NDIS journey can feel overwhelming. There are so many new words, acronyms, and NDIS Plan funding terms all at once. You are not alone, and understanding the basics can make navigating your NDIS Plan much easier and less stressful.
This beginner-friendly guide breaks down the most common NDIS terms in plain English, so you can understand your Plan, speak with Providers and make decisions with more confidence.
Key people and organisations
Participant: The person who has been approved to receive NDIS support and has an NDIS Plan.
Nominee: A person appointed to officially communicate with the NDIS and Providers with or on behalf of the Participant:
Child Representative – Nominee for a Participant under 18 years of age.
Person with Consent – Nominee for a Participant over 18 years of age. They may communicate with the NDIS but cannot make decisions for the Participant.
Plan Nominee – Nominee for a Participant over 18 years of age. They have full Consent for make decisions for the Participant relating to their NDIS Plan.
NDIS: The National Disability Insurance Scheme – is the scheme that supports eligible people living with disability.
NDIA: The National Disability Insurance Agency - is the government agency that implements and manages the NDIS.
LAC (Local Area Coordinator): A local partner who can help with Planning conversations, Plan implementation support and linking you with supports.
ECP/C (Early Childhood Partner/Coordinator): A partner that supports families of younger children through the NDIS early childhood approach.
Plan Manager: That’s us! LifeAbility Plan Management is here to assist you with the financial administration of the NDIS Plan.
Support Coordinator: A very useful funded support, (you must check if this is included in your Plan) that helps you understand and implement your Plan by coordinating and connecting you to service Providers and community supports to achieve your goals. A good example of support coordinators that are honest, reliable and knowledgeable are Evina Connect.
Plan Manager: A Provider who manages the financial administration of your Plan-managed funding - processing invoices, paying Providers, tracking spending and keeping financial records.
Provider: A person or organisation that delivers supports or services to an NDIS Participant for example, support workers, therapists, equipment suppliers and Plan managers.
NDIS Plan management options
When your Plan is approved, You have the option to choose how your NDIS Plan is managed. This determines who assists you with financial administration and support and what Provider choices you have. There are 3 options - Plan Managed, Agency Managed and Self Managed:
Plan Managed: The most supportive and Provider flexible option. An NDIS Plan manager (like LifeAbility Plan Management) pays your Providers on your behalf and helps you keep track of your spending. Plan-managed funding can be used with both registered and non-registered Providers (as long as the support is funded in the Participant’s NDIS Plan). Plan Management is a free service for the NDIS Participant, the monthly fee is $104.45 which the NDIS pays for from the Choice and Control budget in the Plan.
NDIA-managed (Agency Managed): The least flexible option. The NDIA pays registered Providers directly. You need to use registered NDIS Providers.
Self Managed: Flexible yet administratively intensive with no direct support. You may use registered and non-registered NDIS Providers and there are no pricing limits, which means NDIS Providers can charge you whatever they want, which can cause you to exhaust (or run out of) your NDIS Plan. You (or your Plan nominee) pay Providers directly (out of your own pocket) and you manage all the invoices, budgeting, administration and reporting the NDIS yourself.
How is your NDIS Plan funding structured?
Your NDIS Plan is created around your NDIS goals. Your NDIS Plan is broken in to 3 main funding categories:
Core Supports: Everyday NDIS supports that help with daily life and community participation - can be flexible funding between categories, however check your Plan for details and you can also check with your NDIS Plan Manager.
Capacity Building: NDIS therapy supports that build your skills, independence, and capacity over time for example, occupational/speech therapy or support coordination – this category is ‘stated’ funding is not flexible between categories.
Capital Supports: Higher-cost items and one-off investments - for example, some assistive technology, home modifications, or specialist disability accommodation.
Flexible Funding and Stated Supports
Flexible funding means Participants can use their funding across different support categories where allowed, depending on their need and NDIS Goals.
Stated supports are more specific. These funds are allocated for a particular support, service, or item and cannot be moved to another category. If funding is ‘stated’, it needs to be used exactly as outlined in the NDIS Participant’s Plan.
Understanding whether funding is flexible or stated is important to ensure misuse of NDIS funding is avoided, which can put Participant NDIS funding at risk. If an NDIS Participant is unsure how their NDIS funding can be used, an NDIS Plan manager or support coordinator can help you understand your NDIS Plan.
NDIS Funding Periods & PACE Plans
We recommend that you discuss your NDIS Plan with your Plan Manager as Plans will vary. Funding Periods were introduced for NDIS Plans approved or reassessed after 19 May 2025. NDIS Plan Funding Periods will vary and may be divided into periods ranging from 1-month to 6-month periods.
Before these changes were introduced, the total of the Plan funds approved were available from the start date of the Plan. This means some NDIS Participants with older Plans may still have funding released as a whole, until their current NDIS Plan ends or is reassessed.
It is also important to send your updated NDIS Plan to your Plan manager whenever your NDIS Plan is extended, or renewed. This helps your NDIS Plan Manager at LifeAbility Plan Management provide you with the most up to date and accurate support.
If you are unsure whether your NDIS Plan includes funding periods, you may contact us at LifeAbility Plan Management and we will assist you with your NDIS Plan query.
What is Funded in your Plan?
The NDIS have introduced the ‘Would we Fund it guide’ on their website.
The guide tells you how NDIS Planners make decisions about what the NDIS will and won’t fund.
Refer to the ‘Would we Fund it Guide’ on the NDIS website.
The NDIS bases decisions on what is ‘Reasonable and Necessary’.
What is Reasonable and Necessary?
The NDIS rules say all NDIS supports need to meet the reasonable and necessary criteria before we can fund them in your Plan. Reasonable and Necessary NDIS Supports must:
Relate to the disability that the Participant was funded for.
Help the NDIS Participant work towards their NDIS Goals.
Be value for money - while also fitting with what other services (like health, education, or housing) should provide.
Quick checklist: Is it related to your disability? Does it support your NDIS goals? Is it likely to be effective? Is it value for money? Does it complement (not replace) mainstream and informal supports?
Not funded: Everyday living costs (like groceries or rent), holidays, or supports that another government agency funds.
When creating your NDIS Plan, your NDIA Planner considers the information and evidence you provide, alongside the Reasonable and Necessary criteria and NDIS rules, to decide what NDIS supports can be funded in your Plan.
What is Reasonable and Necessary will look different for each Participant. This is because the NDIS supports you receive funding for, are based on your individual situation, your disability support needs and the information and evidence you give to the NDIS.
NOTE: Be sure to take reports/evidence and any information that relates to the goals you are trying to achieve and the disability that you are living with. Speak with your NDIS Contact/therapist/health care Provider prior to your Planning meeting to ensure you have all the supporting information you need with you.
You can find more information on the NDIS website regarding what is Reasonable and Necessary, and you may also refer to the documents ‘Supports that ARE NDIS supports’ and ‘Supports that are NOT NDIS supports’.
OR Contact LifeAbility Plan Management and we can assist you in understanding your NDIS Plan.
Budget and invoicing terms
Service agreement: A written agreement between the NDIS Participant and the NDIS Provider that sets out what the NDIS Provider will deliver, at what price, and key terms of the agreement such as cancellation policy.
Invoice: The bill from an NDIS Provider. The Invoice must list the Participant name and Participant NDIS number, date of invoice, NDIS Provider ABN, the date the NDIS support was delivered, the item number and the hourly rate. You can find an example invoice on the LifeAbility website here.
Claim: The request for payment from the NDIS Plan funds.
NDIS price limits: Relevant to NDIS Plan Managed Plan. It is the maximum hourly rate an NDIS Provider can charge.
NDIS Plan dates: Participant’s NDIS Plan has a start and end date. Plan funds need to last for the full Plan period.
How LifeAbility Plan Management can help you NDIS GUIDE
There is a lot of information here and LifeAbility Plan Management can help you with all of the above.
LifeAbility Plan Management is here is to help you understand your Plan so you know what to do next and we help you manage your NDIS Plan so you do not have the administration stress.
LifeAbility Plan Management will assist you with all of the financial administration relating to your NDIS Plan including checking invoices, submitting queries on your behalf when necessary, processing on-time payments, coordinating payments with Providers to help you maintain choice and access when it comes to your NDIS supports.
Do you have questions about your NDIS Plan or management your NDIS Plan? The LifeAbility Team is here to help, contact us today.
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