The 2023/24 Pricing Arrangement and Pricing Limits (PAPL) document has been released and there has been some key pricing changes that will be effective 1 July 2023.
From 1 July 2023, prices for supports delivered by disability support workers and Level 1 Support Coordinators will be increased by 5.3%, including:
- an adjustment to price limits in line with the Fair Work Commission’s (FWC) decision to increase award wages.
- an extension of the temporary loading for a further 12 months at 1% from 1 July 2023 with this ceasing on 30 June 2024.
- the inclusion of paid family and domestic violence leave into the Disability Support Worker Cost Model – up by 0.1% from 1 July to reflect the new entitlements for workers in the industry awarded by the FWC.
- the adjustment to price reflect increase to Superannuation Guarantee Charge by 0.5 percentage points.
The plans of NDIS participants will be adjusted next month, with funding to be indexed to account for these pricing changes.
- After extensive market analysis and consultation, there will be no adjustment to the pricing arrangements and price limits for therapy supports on 1 July 2023.
- The market for therapy continues to attract new providers entering the market. Results from extensive benchmarking analysis suggest the current NDIS price limit of $193.99 is above the average fully loaded hourly cost of most types of therapy professionals.
- Comparison to other government therapy schemes and private billing rates suggest that NDIS price limits for therapy supports remain competitive, with the NDIS price limits remain in the middle or upper range for most therapies.
- We have invested significantly in the therapy market, with the amount claimed rising by 26% to $1.6 billion over the six months to December 2022, compared to the six months to December 2021.
Support coordination and plan management supports
- Level 1 support coordination will be indexed in line with the indexation of supports determined by the NDIS DSW Cost Model.
- After careful market analysis and consultation, there will be no adjustment to the pricing arrangements and price limits for support coordination level 2 and 3.
- After careful market analysis and consultation, there will be no adjustment to the price limits of plan management supports. The growth of participants and providers of plan management supports over the past two years suggests this market is still viable.
- We have invested significantly in the markets for support coordination (amount claimed rose by 15% to $428 million) and plan management (amount claimed rose by 14% to $228 million) over the six months to December 2022, compared to the six months to December 2021.
- The NDIA looks forward to working closely with the sector and individual support coordinators to develop a better understanding of worker composition and cost structure.
- The price limit for other supports will be increased by 4.36% from 1 July 2023.
- Maintain the scheduled reduction in the TTP loading to 1.5%. The TTP Loading will cease from 1 July 2024.
The NDIA has also released the outcomes of its Specialist Disability Accommodation (SDA) Pricing Review 2022-23 and new benchmark price changes for SDA will take effect from 1 July 2023.
The full 94 pages of the Annual Pricing Review, giving context and reasons for all these changes, is available to read here.
Read the updated Pricing Arrangements and Price Limits document here.
Civic can assist you with understanding how these changes may effect your NDIS plan. If you would like more information, please visit our services page.