Consultation outcomes of mandatory registration papers released!

A long time ago, in a galaxy far, far away… the NDIS Review recommended compulsory registration or enrolment for all NDIS providers.

OK, granted, December 2023 was not that long ago but given all that has happened on planet NDIS since then, it does feel quite an age!

Since then, we have had a Taskforce, a series of consultation papers, industry forums and town hall style meetings and a Regulatory Reform Roadmap. Most recently, after months of waiting, the NDIS Quality and Safeguards Commission released two summary papers on the outcome of the consultations for the mandatory registration of Supported Independent Living (SIL) and Support Coordination (SC) Providers and Platform Providers. In this article, we’ll look into the feedback from the SIL and Support Coordination consultation and what it might mean for the future of NDIS registration. In our next article, we’ll look at the feedback from the Platform Provider consultation.

As of today’s count, there are some 260,000 NDIS providers, with 16,000 (6%) being registered. The clear message from the government is that a stronger, more robust system of provider registration is necessary for a thriving NDIS.

The story so far - The NDIS Review and the Registration Taskforce

When the NDIS Review was handed down in December 2023 it included a recommendation for the development of a risk-proportionate model of registration for all providers and workers. While this type of model (where services with higher risk attract greater registration requirements) has been in place since 2018, the big difference here was the express aim to capture ALL providers and make some level of registration mandatory.

In principle, this recommendation was seen as an important way to increase visibility over the providers in the sector and to support increased quality and safety. However, many participants and families worried it would undermine their choice and control.

Knowing there was more work to be done, the government established a Provider and Worker Registration Taskforce and charged it with consulting with the disability community to provide advice on the design and implementation of the regulatory model proposed by the NDIS Review.

In summary, the Taskforce proposed the following model of registration:

1. Advanced Registration for providers who offer high-risk supports such as behaviour support and services in closed settings.
2. General Registration for providers who offer medium-risk supports such as personal care, high-intensity daily personal activities, community access and therapy with a lot of one-on-one contact. This registration category would capture most of the current disability support services that are delivered in-home or community.
3. Self-Directed Support Registration for participants/support network who contract all of their supports directly. E.g. direct employment, Services for One.
4. Basic Registration for providers who offer lower-risk supports. Such as some sole traders or supports, where social and community participation involves limited one-on-one contact with participants.
5. No registration is required for goods bought from mainstream retailers, with visibility maintained through purchasing arrangements.

(Full version of the Taskforce’s recommendations can be found here: NDIS Provider and Workforce recommendations Taskforce advice).

Outcomes of consultation

Following the completion of the report from the Taskforce, in September 2024, the government announced that Platform Providers, Support Coordinators (SC) and Supported Independent Living (SIL) Providers would be the first providers to face mandatory registration, with a promise that this would occur no earlier than 1 July 2025.

Since that time, a series of consultation papers have been developed, submissions invited, industry consultative forums held and provider surveys distributed.

The NDIS Commission has just released the outcomes of the consultation process in two “What we heard” reports - Supported Independent Living and Support Coordination Providers and Platform Providers. In this article, we’ll look at the findings from the SIL and SC paper, but stay tuned for more content on Platform Providers.

So what did they hear…?

Many of those involved in the consultation for SIL and SC Providers, including participants and families, registered and unregistered providers and peak bodies identified benefits to mandatory registration. This includes improving overall quality and safety of the NDIS, ensuring greater accountability and promoting participant outcomes.

The NDIS Commission particularly sought feedback on the transition timeframes. The proposal in the consultation paper was that SIL and SC Providers would have 3 months to register (from the launch date of the new system) with a further 12 months to pass the quality audit. This was seen as achievable by some, while others were concerned that 12 months may not be enough time for providers “who need to overhaul their business practices, policies, and procedures to comply with the new requirements”.

Four common themes were raised in the feedback:

1. Cost pressures - unregistered providers were worried about the cost of registration. This includes the audit costs, as well as costs associated with extra administrative work and compliance.
2. Fairness and flexibility in registration requirements - respondents stressed the need for the registration process to be nuanced enough to take account of differences in provider size, location, service offerings and existing accreditation. Additional concerns included how to support providers delivering culturally sensitive and trauma informed services, as well providers in rural and remote areas where audits might be more expensive.
3. Keeping current supports in place - participants and supporters expressed concerns about trusted providers who may be unable to meet the new requirements. They wanted to know whether they would lose access to these supports and be required to find new providers. The time and effort associated with starting over can be stressful and disruptive.
4. Need for clarity about the transition - both participants and providers said they still don’t have enough information to understand how the changes will work, when they will happen or what the impact will be. The provision of clear, consistent and accessible information is seen as essential.

What happens next?

Many unregistered SIL and SC Providers are no doubt digesting this information. Trying to understand the registration process and make a business decision about whether to commence now or wait for further announcements, is likely consuming a lot of time and energy.

If you want to get ahead of the game, make sure you check out our workshop: Preparing for NDIS Registration.

The NDIS Commission has committed to holding more targeted consultations with those most affected by the changes, informed by what they have heard through this round of consultation.