Understanding Financial Basics

When self-managing your NDIS plan, it’s important to understand a few basic financial terms. Knowing these terms will help you stay on top of your budget and make sure your NDIS funding is used correctly.

Key Financial Terms

• Budget: A budget is the total amount of money you have available in your plan. It helps you track what you spend and avoid overspending.
• Claiming: Claiming means asking the NDIS to pay you back for services you’ve already paid for. You do this through the NDIS myplace portal.
• Income: Your income is the money you receive to cover your supports. In this case, it’s the funding provided by the NDIS.
• Expenses: Expenses are the costs for your services and supports. Examples include paying for a support worker, equipment, or therapy.
• Surplus: A surplus means you have money left over after paying for everything. For example, if you have $500 in your budget and only spend $400, you have a $100 surplus.
• Deficit: A deficit happens when you spend more money than your budget allows. For example, if you have $500 in your budget but spend $600, you have a $100 deficit.

See the NDIS Glossary for more terms and their meanings, or check out the AFDO Website for our Useful NDIS Terms or Useful Financial Terms resources.

Setting Up a Separate Bank Account

Having a separate bank account for your NDIS funds makes it easier to keep track of spending. Here’s how to get started:

1. Ask your bank about fee-free accounts. Since NDIS funds can’t be used to pay bank fees, look for an account with no or low fees.
2. Open the account and make sure it’s used only for NDIS funds.
3. Link it to the NDIS myplace portal so the NDIS can deposit your funding directly.

Having a dedicated account for NDIS funds makes it simple to track spending and keeps your records clear.

Activity: Check Your Understanding

• Write down two examples of expenses you might have under your NDIS plan (e.g., therapy sessions, assistive equipment).
• Think about why a separate account might be helpful for tracking your NDIS funds. Write down one reason.

Helpful Links

·        NDIS Glossary: https://www.ndis.gov.au/understanding/glossary

·        Guide to Self-Management: https://www.ndis.gov.au/participants/using-your-plan/self-management

·        NDIS myplace Portal: https://www.ndis.gov.au/participants/using-your-plan/ndis-portal