Compensation reduction amount
When a participant is in receipt of a compensation payment, the NDIA will need to consider if the judgment or settlement includes payment for supports that may be provided by the NDIS. For example, the compensation may specify an amount that is to provide for personal care assistance. This type of support may otherwise be provided by the NDIS. The NDIA will not duplicate a support provided under a compensation payment.
The NDIA is guided by the National Disability Insurance Scheme (Supports for Participants – Accounting for Compensation) Rules 2013 (Cth) (‘CRA Rules’) to calculate a compensation reduction amount (CRA), which reduces the funding in a participant’s plan to avoid this duplication. The calculation of the CRA will depend upon whether the compensation judgement or settlement allows for any NDIS component to be identified from non-NDIS aspects of the compensation, such as pain and suffering. The CRA Rules direct the NDIA on how to identify the NDIS component depending on the circumstances. The total CRA is divided by the participant’s remaining life expectancy and applied accordingly to each NDIS plan. The NDIS plan will still reflect the participant’s approved supports, but the dollar figure will be reduced by the CRA.
The NDIA may also seek to recover past NDIS amounts that were funded in a participant’s plan, before the compensation was finalised.
The NDIA have discretion to waive all or part of a CRA or recoverable amount, if a person’s circumstances are unusual, uncommon or exceptional. Decisions made by the NDIA’s compensation branch are reviewable.
This is a complex area of the NDIS and independent legal advice is suggested.
Compensation reduction amount
Chapter: 8.2 Understanding the National Disability Insurance Scheme
Contributor: Naomi Anderson, Legal Practice Manager, Villamanta Disability Rights Legal Service, and Marcus Boere, Lawyer, Victoria Legal Aid; Elise Almond, Senior Lawyer, Villamanta Disability Rights Legal Service; John Morrissey, Professional Support Lawyer, Victoria Legal Aid
Current as of: 3 October 2024
Law Handbook Page: 715
Next Section: Assistance for participants to interact with the National Disability Insurance Agency
