Disclosure Log
Document: Pricing Reference Group - Item 4.3 (Date: August 13th)
Matter For Noting:
Pricing Reference Group Meeting
Publication Of The NDIS Cost Model For Disability Support Workers 2020–21
Presented By David Cullen Chief Economist
Purpose To Provide PRG With Copy Of NDIC Cost Model For Disability Support Workers.
Recommendation That Prg Note That Ndics Cost Model Has Been Published On Website.
Background The NDIA Publishes This Model In Order to Improve Transparency in Its Pricing Regulation Arrangements.
Next Steps A Revised Version Will Be Released on December First, After Price Limits Are Adjusted According to Fair Work Commission’s Equal Remuneration Order.
Attachment(s): A NDIS Disability Support Worker Cost Model
Disclosure Log
DOCUMENT 32.1
National Disability Insurance Scheme
Disability Support Worker Cost Model - Valid: July 01/2020-27/July/2020 Version : Publication Date: ndis.gov.au
Disclosure Log
Copyright
Copyright in the information contained in this document is owned and protected by the National Disability Insurance Scheme Launch Transition Agency (National Disability Insurance Agency).
Use of National Disability Insurance Agency copyright material
The material in this report with the exception of logos, trademarks, third party material and other content as specified is licensed under Creative Commons CC NC licence version 3.0. With the exception of logos, trademarks, third party material and other content as specified you may reproduce the material in this Cost Model provided you acknowledge the National Disability Insurance Agency as the owner of all intellectual property rights in the reproduced material using ’© National Disability Insurance Scheme Launch Transition Agency’and do not use it commercially Reproduction any creative commons material subject to conditions available on site full legal code for this material.
Terms that we use
dsw disability support worker ndia national insurance agency ndis scheme ttp temporary transformation payment
Further informationFurther pricing can be found at NDIS website .Footnotes are included Appendix Footnotes end Version Control The NDIS Cost Model supports delivered by workers subject change latest model available on NDIS website .
Disclosure Log
Contents
- Introduction…5
- Disability Support Worker Cost Model
- Applicable Industrial Award……8
- Base Pay………….8
- Shift Loadings………9
- Days Worked Versus Days Paid…….9
- Salary On-costs……….10
- Supervision costs…………11
- Permanent v Casual Workers……12
- Utilisation………………12
- Overheads……………13
- Margins………………14
- Price Limits Determined by the Cost Model……………………15
- Notes…………………………..29
- Temporary Transformation Payment (TTP)…………….29
- Assistance with Self Care Activities - Night-Time Sleepover Support ……..29
- Establishment Fee for Personal Care/Participation …….29
- Short Term Accommodation and Assistance (including the respite care)… 29
- Group Activities (Transitional Arrangement). . … .. …..
redacteds22(1)(a)(ii) - irrelevant material Material outside scope of request, or names/contact details removed as irrelevant. Irrelevant Material: Names redacted due to relevance. Redaction code: s22(1)(a)(ii), reason unknown but likely related to irrelevance under FOI Act.
- Appendix I – Footnotes ………………………………. 31
DISCLOSURE LOG
This disclosure log relates to MR25/01967 FOI request number 24/25-2242.
The document contains information about releases made in response to freedom-of-information requests and has been released according to Section 1(1)(a), which states that all documents are subject to release unless they fall within a specific exemption or exception as defined below:
- Page: This refers specifically to page numbers from an official document series (e.g., ‘Page X’ where X is replaced with actual numerical values).
- Total Pages: The total count indicates how many pages make up this particular set, e.g.:
of Ysignifies there were exactly Y pages altogether.
Introduction
The purpose of this document is to set out the methodology and assumptions of the Cost Model that the NDIA uses to inform its pricing decisions for supports delivered by Disability Support Workers (DSWs). The method used in informing these decisions can be found within the Review of Therapy Pricing Arrangements. One principal objective of NDIS Scheme’s role involves people with disability exercising choice over how they spend their available budgets; hence prices are crucial as participants’ choices reflect preferences placed upon different types or levels of support services provided at varying costs which ultimately influence providers’ supply mix while also affecting purchasing power among beneficiaries who may face reduced access due higher rates leading towards financial sustainability issues impacting resource allocation across sectors including production capacity relative other areas where deregulation might not always apply uniformly depending on market conditions currently regulated approach varies between:
- No regulation: typically applied when markets exhibit high competitiveness such transport sector;
- Imposition price limits representing maximum allowable amount payable per type service still developing growing like attendant care etc.; Quotable Supports wherein participant expects quotation from suppliers verifying fair reasonable charges part verification process ensuring adequate competition exists amongst various vendors providing similar goods/services under same framework. Pricing controls need take into account efficiency expansion required. Markets continue evolving increasing both supplies improvements productivity necessary long term reductions cost but short medium terms require higher prices maintain expand volumes resources allocated economy otherwise shortages likely exist.
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020–21
The NDIS Pricing Strategy is best understood in terms of four different concepts of pricing:
- Efficient price levels – Price levels that represent the long run minimum cost of production. Sufficient production at efficient price level is expected only be achievable in mature markets, with strong competition between providers.
- Sustainable price levels – Price levels representing a given time’s viability against current efficiency and technology. In short term prices above sustainable are needed ensure stable supply with somewhat higher costs remain viable.
- Transitional price levels – Prices necessary attract new providers to enter market or reduce exits from it. Transitional represents economic resources expansion provider supply where significant growth desired as case during transition period.
- Price caps – Upper limits on prices used reducing potential exercise power over market.
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020–21 In the longer term, efficient price levels are the best representation of the reasonable cost of provision support However in short medium-term sustainable price levels represent reasonableness In long run sustainability tends towards efficiency Shorter terms however market matures expands need sufficient caps maintain current supply attract new supply That NDIS needs at least transitional prices set with regard to transition cap movements green arrow Figure recognize costs providers adjusting arrangements time unwind agreements encourage growth while driving efficiency This done through explicit decreasing loading Sustainable price levels Temporary Transformation Payment (TTP).
- Sustainable price levels determined most effective outcomes achieved top performers sector means that per cent currently operating better than benchmark The NDIA considers these benchmarks therefore represents targets for service delivery. The original level TTP hence transitional were initially set amount ensure percent provider operation above this benchmark Level is being reduced over time encouraging more efficient value money participants taxpayers Further information on approach pricing found NDIAs Pricing Strategy and report Annual Pricing Review 2020–21.[4] Footnote: Consider estimating overall structure by reference performance against each key parameter because little collinearity observed between parameters results Pearson product-moment correlation coefficient matrix below determinant . | A = Permanent Share Workforce | B Supervision Ratio | C Non travel allowances D Workers Compensation Premium E Utilisation percentage F Overheads percentage | |- |- |- |- |- |-| |A, -B, C. D, E., F.|-.9,.13,-C.-D,E,F|.6E,D,C,B,A.F||F.E.D.C.B.A.5% See p of the Annual Pricing Review [3] https://www.ndis.gov.au/media/1820/download [4] https://www.ndis.gov.au/media/2413/download
Disclosure Log
Disability Support Worker Cost Model
This Chapter sets out the assumptions and methodology of the Cost Model that the NDIA uses to estimate the costs to disability service providers of employing Disability Support Workers (DSWs) to deliver supports through the NDIS. The Cost Model estimates the cost of delivering a billable hour of support taking into account all of the costs associated with every billable hour including: base pay; shift loadings; holiday pay; salary on costs; supervision costs utilisation non-billable activities employee allowances corporate overheads margin These estimates are basis price limits set by ndia for supports delivered DSWS level can be achieved by providers who match benchmarks set their reasonable efficient competitors course, Costs Providers may overachieve some benchmark underrun others The NDIA recognises have employ different skill levels experience meet needs participants therefore has different sets four types workers Applicable Industrial Award national award DSWS Social Community Home Care Services Industry 2010 SCHADS Award5 NDIA recognises employed Enterprise Bargaining Agreements EBAs however these leave worker no worse off overall than they would under relevant Award additional benefits offered EBA over Award agreed provider often offset productivity gains Therefore considers conditions in SCHADS Award appropriate foundation Cost Model Base Pay Table Assumptions respect base pay DSWs6 Table: Assumed SCHADS Classifications and Pay Rates July |Assumed SCHADS Classification |Award Hourly Rate| dsw $\mathbf{.3}$|$^{*}$$^{{}}$${}\text { d }$ egin{tabular}{l l} hdr & \end{tabular}|d sw $oldsymbol{ar{s w s .4 }}$ |
Disclosure Log
National Disability Insurance Scheme – Disability Support Worker Cost Model 2020–21
Shift Loadings
Table (\ref{tab:shift-loadings}) sets out the cost model’s assumptions regarding shift loadings and are based upon SCHADS Award.
Table :Shift Loadings, July ,
| Weekday | Permanent Loading | Casual Loading |
|---|---|---|
| Saturday | $50$% | $75$.% |
| Sunday |
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020–21
leave accrual during the billable hours of the DSW.
The Cost Model assumes that workers accru4% days of long service leave each year.[^3]
In line with SCHADS Award,
the Cost Model also provides a 175 loading for annual leave
to compensate workers for the shifts they would have otherwise taken[^4].
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020–21
- Workers compensation insurance at 1.7% of base salary including while on leave;¹⁶ and
- Employee allowances at 1.0% of base salary.*
The cost model does not provide payroll tax most jurisdictions exempt not-for-profit smaller organisations from. table: Impact Of Salary On-costs On The Cost Per Worked Hour A Permanent DSW | DSW| Cumulative cost per hour before on costs $35.| Superannuation Rate (%)$9.| Superannuation ($)|$34.$Workers Compensation Premium rate (%)$1.| Premium Cost ($)|$.6|.Employee Allowances Allance Rate %]$1.| Allance Cost ()|$0.|Cumulative cost after oncosts $40.| Cumulative increase standard hourly rate 36.%Supervision Costs The cost recognises that dsw require support supervision assumes supervisors have same shift loadings, leave entitlements salaries as workers they manage higher skilled requires higher skilled supervisor also assume span control ratio worker to supervisior is 15 : .footnotes[²] Annual Pricing Review (page ) found averaged over , the standardized Australian average premium was for all industries Health Community Services sector Benchmarking Study undertaken part annual pricing review found among respondents in disability sector was with a median nd percentile In line NDIS this parameter has been set level achieved efficient providers.[³] Annual Pricing Review page found allowances typically order based payables worker. [⁴] Benchmarking study undertaken part of annual pricing review page found average span respondent s disability sector was nd percentile In line NDIS this parameter has been set at by efficient providers.
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020–21
Table 5: Impact of Supervision on Cost per Worked Hour of a Permanent DSW
| dsw | dsw_1 | dsw_2 | dsw_3 | dsw_4 |
|---|---|---|---|---|
| cumulative cost per hour before supervision | $\mathbf{4} \cdot { }^{*}{ }{-}$ & ${ }^{{ }}$ & ${ }^{-}{+}\mathrm{-}}${ }& ${ }-{ }-$ | |||
| supervisor level (schads equivalent) | 3·2 | 4 · .2 | 4 · .2 | .5.1* |
| note span of control | 15 | 15 | 15 | 15 |
| personal costs after supervisioon | $\mathbf{6897}$ & $\mathbf{7,95}-$$\times$ & $\mathbf{7},9$ & $\mathbf{8.84}-${ } | |||
| ote cumulative increase from standard hourly rate | $.462%$ | $ ext {.47}.2%-$. | .$46%.8-%.$ | %.460% |
Permanent v Casual Workers The Cost Model assumes that %of the DSW workforce is permanently employed. ootnotemark[1]
Table: Impact of Casual Loading on the Cost Per Worked Hour of a DSW
dsw | dsw_1 | dsw_2 | dsw_3 | dsw_4 | cumulative cost per hour at (100%) permanent | $\mathbf{4} { }{-}\mathrm{-}}${ }& ${ }^{{ }}$ & ${ }^{-}{+}${ }| ${ }-{ }-$| costs per hour at (%permanent) | 4·3 .73 | 4 · 71 | .47.41* | .56,65* note effect casual loading | 1.2$ | 1,2& *1,& 1.&$ imes;- rac{}{} ight)$1. utilisation note all worked hours are billable For example SCHADS Award provides ten minute paid break from work every four hours DSW also need to undertake training and attend other issues Cost model assume higher skilled workers with more responsibilities may require non-billable hours maintain their skills deal issue accordingly Cost Model sets utilisation level %for DSW s% for DSW ;89.%DWS%;and 80% ootnotemark[2]
Footnotes:
footnote: The Benchmarking Study undertaken as part of the Annual Pricing Review (page ) found that average casual employment share among respondents in disability sector was $.43$. With a percentile $\mathbf{7}^{th}$ this cost parameter has been set achieved by efficient providers. footnote: The Benchmarking Study undertaken annual pricing review page found that average utilization among respondents Disability sector was %. With percentiles this cost parameter has been at same level achieved by efficient providers.
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Margins
The Cost Model assumes a 2% margin on other costs. This equates to a rate of return of 8% against working capital, equivalent to three month’s wages and entitlements.
| DSW | Cumulative cost per hour before margin | |-:| |$53.23$ & $740$
Disclosure Log
Price Limits Determined by the Cost Model
The following Table sets out how the price limits for each relevant NDIS support item is related to the NDIA’s estimates of the efficient costs of delivering supports.
Further information can be found in the NDIA’s Price Guide 2020-<sup>2</sup>–<sub>24/5-</sub> 22
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 01_054_0115_1_1* | STA And Assistance Inc Respite)- 1: Weekday | Derived from DSW model | DSW 2 | See Note ()\ |
*Note:\ The reference number is not consistent across all entries, and some have a trailing underscore or dash.
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National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
01_304_0104_1_1_T |
Assistance With Self-Care Activities-Level Level 1-Public Holiday-TTP |
Derived from DSW model | DSW 1 | Public Holiday Loading | See Note extbf{1} |
01_305_0104_1_1 |
Assistance With Self-Care Activities-Level -Weekday Night |
Determined by DSWmodel | DSW 1 | NightLoading | |
01_305_0104_1_1T |
Assistance With Self-Care Activities-Level - Weekday Night TTP |
DerivedfromDSWModel | DWS W 1 | Nigh tLoa ding | SeeNote ` extbf { } extbf { extit{ extbf{1}}} |
01 _400. OI OA I_II |
AssistanceWithSelfCareActivities-Level - Level 2-Week day Daytime | Determin edbyDSWmod el | DS W Z | ||
O1_400_0lOA_I_It |
Ass itance Wit h Sel f Care Activi ties-Leve l L evel 2-W ee k d ay Time -TT P | Derive df rom D SW mo del | D S WZ | Evening Loading | |
01 .401.0104.I_1t |
A ss istan ce Wi th Se lf Ca re Act ivities-L evel 2-We ek da y Eve ning-T TP | De rived fr om D SW Mo de l | DSW z | Evening Loading | |
o1_401_oloa_i_it |
A ssi stanceWi thSel fc areAct i viti esLe ve lL eve lT TTP | De rivedf ro mD SWMo dell | DS wz | E ven ingLoa ding | SeeNote ` extbf { } extbf { extit{ extbf{1}}} |
0I _402. O I OA I IT |
Assistance With Self-Care Activities-Level -Level 2-Saturday |
||||
| -: | :-: | ||||
| Determin ed by DSWmodel | DSw Z | SaturdayLoading | Se enote ` extbf { } extbf { extit{ extbf{1}}} | ||
O1_403.OlOA_I_IT |
AssistanceWithSelfCareActivities-Leve L - Level 2-Sunday | ||||
| - : | :- : | ||||
| Determin e dbyDS W mo del | D S WZ | Sunday Loading | See Note ' extbf { } extbf { extit{ extbf{1}}. |
||
0i .403. olo a_It |
Ass itance Wi t h Sel f Care Act ivities- Le vel 2-Sun day-T TP | ||||
| -: | :- | ||||
| Derive df rom DSW Mo de l | Dsw z | Sunday Loading | see note ’ extbf {’ } extbf { extit{ extbf{’ }}’\n | o i _404. ol oa_i_it |
|
| -: | :-; | ||||
| De rived fr om D SW M od el | DS wz | Public Holi dy Load ing | SeeNote extbf { } |
||
0I _404. O I OA I IT |
Assistance With Self-Care Activities-Level -Level 2-PublicHolidayTTP |
||||
| -: | |||||
| DerivedfromDSWModel | DSw Z | PublicHolid ayLoading | |||
Ol _505.OIO A_I_IT |
AssistanceWithSelfCareActivities-Leve L - Level level 2-W eekday Night TTP |
||||
| - : | |||||
| De riv edf ro m D S WMo dell | DSwZ | Night Loa ding | Se enote '' extbf{1} |
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National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
01_790_0106_8_3 |
Level 1: Support Connection | Determined by DSW model | DSW 3 |
||
01_801_0115_1_1 |
Assistance in Supported Independent Living - Standard - Weekday Daytime | Determined by DSW model | DSW 1 |
||
01_802_0115_1_1 |
Assistance in Supported Independent Living - Standard - Weekday Evening | Determined by DSW model | DSW 1 |
Evening Loading | |
01_803_0115_1_1 |
Assistance in Supported Independent Living - Standard - Weekday Night | Determined by DSW model | DSW 1 |
Night Loading | |
01_804_0115_1_1 |
Assistance in Supported Independent Living - Standard - Saturday | Determined by DSW model | DSW 1 |
Saturday Loading | |
01_805_0115_1_1 |
Assistance in Supported Independent Living - Standard - Sunday | Determined by DSW model | DSW 1 |
Sunday Loading | |
01_806_0115_1_1 |
Assistance in Supported Independent Living - Standard - Public Holiday | Determined by DSW model | DSW 1 |
Public Holiday Loading |
… (remaining rows)
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 4_105_0136_6_1_T | Access Community Social And Rec Activities - Standard - Saturday-TTP | Derived from DSW model | DSW 1 | Saturday LoadingSee Note 1*** | |
| Group Activities - Standard - Saturday | Determined by DSW model | DSW 1 | Saturday LoadingSee Note 1 | ||
| Group Activities In The Community - Complex - Weekday Daytime | Derived from DSW model | DSW 1 | Evening Loading*See Note 5 |
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 4_120_0136_6_1* | Group Activities In The Community ‐ Standard – Weekday Daytime** | Derived from DSW Model | DSW 1 | See Note 5 | |
| T**** | Standard – Weekday Daytime * TTP *** | Derived from DSW Model | DSW 1 &&& Saturday Loading & Sunday Loading & Evening Loading \[See Note [5]] | ||
| * 1_T | Standard – Saturday **** | Derived from DSW Model | DSW 1 &&& Saturday Loading & Sunday Loading & Evening Loading \ [See Note]\[5] | ||
| * 1_T | Standard – Sunday * TTP *** | Derived from DSW Model | DSW 1 &&& Sunday Loading & Evening Loading \ [See Note]\[5] | ||
| * 1_T | Standard – Weekday Afternoon ***** | Derived from DSW Model | DSW 1 &&& Evening Loading \ [See Note]\[5] | GroupActivitiesInTheCommunity-ComplexWeekdayDaytimedervdfromDSWModelDsw2 |
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National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 4_137_0136_6_1_T* | Group Activities In The Community - 1: Standard Weekday Afternoon TTP* | Derived from DSW Model DSW 1 Evening Loading See Note5 |
|| || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || || ||4_128_0136_6_1_T*| Group Activities In The Community - 1: Standard Saturday | Derived From Dsw model* DS W.1 Satu rday loading see note 5 *|
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 4_151_0104_6_1* | Group Activities In The Community - Complex: Weekday Daytime* | Derived from DSW Model TTP | DSW 2 | See Note 5* | |
| 4_151_0104_6_1_T* | Group Activities In The Community - Complex*: Weekday Daytime-TTP* | Derived from DSW Model TTP | DSW 2 | See Note 5* | |
| 4_152_0104_6_1* | Group Activities In The Community - Complexity*: Weekday Afternoon* | Derived from DSW Model TTP | DSW 2 | Evening Loading | |
| 4_152_0104_6_1_T* | Group Activities In The Community - Complexity*: Weekday Afternoon TTP* | Derived from DSW Model TTP | DSW 2 | Evening Loading | |
| 4_153_0104_6_1* | Group Activities In The Community - Complexity*: Saturday | Derived from DSW Model TTP | DSW 2 | Saturday Loading | |
| 4_153_0104_6_1_T* | Group Activities In The Community - Complexity:Saturday- TTP* | Derived from DSW Model TTP | DSW 2 | Saturday Loading | |
| 4_154_0104_6_1* | Group Activities In The Community - Complex: Sunday | Derived from DSW Model TTP | DSW 2 | Sunday Loading |
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 4_168_0136_6_1_T* | Group Activities In A Centre - 1: Standard - Sunday - TTP* | Derived from DSW Model * | DWS 1 |
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National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 4_182_0136_6_1* | Group Activities In A Centre - 1: Standard Saturday* | DSW 1 | Saturday Loading See Note5* | ||
| 4_182_0136_6_1_T* | Group Activities In A Centre - 1: Standard TTP Saturday * | DSW 1 | Saturday Loading See Note5* | ||
| 4_183_0136_6_1* | Group Activities In A Centre - 1: Standard Sunday* | DS W 1 | Sunday Loading See Note5* | ||
| 4_183_0136_6_1_T* | Group Activities In A Centre - 1: Standard TTP Sunday * | D SW M odel | S unday L od ing See N ot e S***** |
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National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 4_195_0104_6_1_T* | Group Activities In A Centre - **1:*3 Complex Weekday Daytime TTP | Derived from DSW Model DSW 2 | See Note [] |
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Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
|Support Item Number| Support Item Name | Methodology | Basic Model | Loading | Adjustment| |-|:-:|–:–||––|—–|—–– 45_603_7014_6_1_T| Access Community Social And Rec Activities Level 3 Saturday TTP| Derived from DSW model| DSW 3| Saturday loading| See Note | 45_603_7014_6_1_T| Access Community Social And Rec Activities Level 3 Sunday| Determined by DSW model| DSW 3| Sunday loading| 45_603_7014_6_1_T| Access Community Social And Rec Activities Level 3 Sunday TTP| Derived from DSW model| DSW 3| Sunday loading| See Note |
Disclosure Log
National Disability Insurance Scheme - Disability Support Worker Cost Model 2020-21
| Support Item Number | Support Item Name | Methodology | Basic Model | Loading | Adjustment |
|---|---|---|---|---|---|
| 07_101_0106_6_3* | Psychosocial Recovery Coaching - Weekday Daytime* | Determined by DSW modelDWS4*** | DSW 4 | ||
| 07_102_0106_6_3* | Psychosocial Recovery Coaching -Weekday Evening * | EveningLoading* | |||
| 07_103_0106_6_3 | Psycbosocia lRecovery Coaching-W eekd ay Night* | Determin edby DS Wmodel*dsw dws4 night loading | |||
| 07 _104 .OIOlE_6_3* | Psych osocial Re covery C oach ing-S atur day* | Det ermined b y D SW mo del*d sw d ws. saturdayloading \ | |||
| 07 _I05 . O I OE 6_3* | Psy choso cial R ecove ryCo aching- Sunday* | De term inedb y D S W m od el*d sw d w s. sundayloa ding | |||
| 07_I06_O IOIE_6_3* | Psychoso cal Recov eryC oac h i ng-P ubl ic H oliday**** | Determined byDSW model*DWS 4 | Public Holiday Loading | ||
| 08_00S_01062_3* | Assistance With Accommodation And Tenancy Obligations * | ||||
| 09_006_0106_6_3 | Life Transition Planning Incl.Mentoring Peer SupportAnd Indiv Skill Develop* | Determin edby DS Wmodel*dsw dws3 | |||
| 09_009_0l lT_6_3* | Skills Development and Training* | Determine dby DSW modelldsw dws3* | |||
| IO_lO E_010Z_5_3* | EmploymentSupport* | Det ermin e b dy D SW mo del*dsw 3 \ | |||
| I O _SO I .Ol Z3_5_1_D* | Supp ortsin Employment-Weekday Daytime* | De term inedb y D S W m od el*d sw d ws. ds w | \ | ||
| Io_SOi_Ol z3_5_I_T_D* | SupportsIn Employ ment - Week dayDay time-TTP**** | Derive dfromDSW Model*DWS 1 | See Note | ||
| lo_So2_olz3_5_1_d* | Suppo rtsin Emp loym ent-W ee kda y Eve ning * | EveningLoading | |||
| can be seen. | |||||
| io_so2_oiz3_5_1_t_d | Support s In Em ploy me nt - We ek da Y Ev en ing T TP* | Deriv ed from DS W Mo de l*dsw 1 | |||
| Lo_soz_oi z3_5_1_d* | Su pp o rt sin E mp ly men t-S at urd ay* | ||||
| IO SOZ oi z3_5_lT D* | SupportslnEmploymentSaturdayTT P***** | D erivedfromDSWM ode l*dws dwsI \ | |||
| saturdayloading canbeseen. | |||||
| LO so3 .0 iz3 _S I _TD* | Supp ortsin EmploymentSunday TT P****** | De riv e dby D SW mo del*d sw d ws. ds w | \ | ||
| Io_SO4_Ol Z3_5_I_D** | SupportsIn Employ ment- Sunday* | Det ermined by DSW model*DWS 1 | |||
| lo_So4_olz3_5_1_T_D* | Suppo rtsin Emp loym ent - Sun day-TTP******** | Derive dfromDSW Model *ds w dwsi | |||
| can be seen. | |||||
| io_so5_oiz3_5_1_d | Support s In Em ploy me nt-P u blic H oliday* | De term in edb y DS W m od el*dsw 1 | |||
| Lo_soz_oi z7_6_3* | Individual Social Skills Development* | ||||
| IO_2OZ oi llT_8_3* | Transition Through School And To Further Education***** | Determine dby D S W modelldsw \ | |||
| s3 dws3 * | |||||
| I O .03 I _Ol lZ_8_3* | CB and Training i n Plan a nd Financial ManagementbyaPlan Manager****** | De termine dby D SW mo del*d sw d ws. ds w | \ | ||
| Io_0sE_Ol OE_l_3** | Assistance With Decision Making Daily Planningand Budgeting******* | Det ermined by DSW model*DWS 1 | |||
| lo_Orz_olll_T_3* | Individu al SkillDevelopmentAndTrainingIncludingPublicTransportTrain ing******** | Determin e dbyDSWmodel *ds wi | |||
| can be seen. | |||||
| io_orz_oillt_3 | Trai ning For Carers/Parents | Determin ed b dy D SW mode ldsw dws3* |
Disclosure Log
Notes
Temporary Transformation Payment (TTP)
The price limit per TTP support item during fiscal year 2020/21 exceeds that set against its equivalent non-TTP counterpart.
In said period (2020-21) each additional amount attributed towards such payments equates precisely six percent (ε6%) multiplied with DSW Cost Level One (DSW_1_Cost). This applies uniformly across all times and days within a week’s cycle.`
Assistance With Self Care Activities - Night-Time Sleepover Support
The maximum allowable cost in financial year ’2020–‘21’, pertaining to these types, is identical as the SCHADS Award for sleepovers plus threefold increments over what constitutes the nightly rate associated directly linked back from DSW Cost Level One (DSW_1_NightCost).`
Establishment Fee For Personal Care / Participation
For this category specifically outlined above, the upper bound of permissible expenditure allocated annually between 2020 & 2021 amounts exactly ten-fold more than the weekday rates derived under DSW Cost Level One (DSW_WeekdayCost). `
Short Term Accommodation And Assistance Including Respite Care
Within any given timeframe spanning years ending at '2020-'21, there exists an aggregate cap on costs related exclusively toward short-term accommodations and assistance services (including respite care) which comprises:
- $
$181.41representing non-labor expenses covering food and lodging; (``1/n`` * 8 x DSW Daytime Cost)`;( ``1/n`` * 8 x DSW Weekday Evening Cost);( ``1/n`` * 8 x DSW Weekday Night Cost ). The same principle applies when considering Saturday or Sunday support items where respective caps are calculated by adding `$``` to labor-related expenditures along with a multiplier factor based upon hours worked during said days. The corresponding formula for calculating these limits is as follows: P_n = frac{P + left( n - 1 right) times {0}cdot{{ imes}{}} }{n}``
Group Activities Transitional Arrangement
The price limit applicable towards group-based community supports extends across every hour of service rendered, contingent solely within the context provided herein regarding individualized one-on-one participation fees (DSW_WeekdayCost). If such hourly rates exceed those stipulated above then they shall be adjusted accordingly using this equation:`
DISCLOSURE LOG
National Disability Insurance Scheme – Disability Support Worker Cost Model 2020–21 For each additional person in the group (after the first), an additional 12%ofthe price limit(essentially seven minutes)*is addedtothoourlypricelimit.*The price limitforcentrebasedgroupsupportsarecalculatedbyaddingafixedcapital allowanceamounttorelevantcommunitybasedgroupsupport.In2020-21,the amount of th fixed capitalallowance ist $2 . I5 per participantperhour.
Disclosure Log
Appendix 1 – Footnotes
- The NDIA considers that it is appropriate to estimate the cost structure of overall efficient providers’ performance against each key parameter because there’s little collinearity observed between parameters in TTP Benchmarking Survey results. The determinant Pearson product-moment correlation coefficient matrix below has a value above . See p50 Annual Pricing Review (p). 3.https://www.ndis.gov.au/media/1820/download4.https://www.ndis.gov.au/media/2413/download5.Fair Work Commission, Social Community Home Care and Disability Services Industry Award incorporating all amendments up including June 2020.6.https://www.fairwork.gov.au/articleDocuments/872/social-community-home-care-and-disability-services-industryAward-pa000100-pay-guide.aspx7.SCHADS: Clauses ,and9.The National Employment Standards govern leave several other conditions Awards may not be reduced by EBAs:[https://www.fairwork.gov.au/employee-entitlements/national-employment-standardstitle=
Disclosure Log
National Disability Insurance Scheme – Disability Support Worker Cost Model 2020–21 workers will eventually access their long service leave entitlement. This reflects the rollout of portable long service leave schemes in some jurisdictions. SCHADS Award: Clause 31.3 hp://www.atogov.au/Business/Super-for-employers/How-much-to-pay/ The Annual Pricing Review 2020-21(page54) found that, averaged over $^{\text{ }}$to the standardised Australian average workers compensation premium rate was for all industries and .% for the Health and Community Services sector.The Benchmarking Study undertaken as part of the Annual Pricing Review (pages )foundthat,theaverage workerscompensationpremium among respondentsin thesectorwas ,with a medianofanda percentile of.In line with then DISPricing Strategy, thisCostModel parameter has been set at level achievedby efficient(providers). TheAnnualPRicingReview(page)(page)foundthatauthoritiesinthesectorweretypically inorder to base salary payable worker. TheBenchmarkStudyundertakenaspart of the PRcingReview( page)foundtha tthe span controlamongrespondentsdisabilitysectorwa s:In linewiththenDISIPricingStrategy,this Cost Modelparameterhasbeensetatlevelachieved byefficientproviders. TheBenchmarkStudypart of the PRcingReview(found tha ta casual employment shareamongrespon dents inthesector wa s:.With 79.8%. Inline with th enDISI Pric ingStrateg ythisCostM odelparamet erhass etalevel achie vedbylefficient providers.BecauseBenchmar king Studynot disaggregated its results between DSWs123 efficient utilisation rates have be estimatedforeachDSWLevelaroundthese cto widepercentileutilisati on rate decreasing slightly seniorityworker.The The utilisationrate forDWS4swasafterconsultationsw ithprovid erswho were currently employing workers role psychosocial recovery coach.These provider indicated that these staff appropriately classifiedSCHADS pay point .They alsoindicatedthatworkerswhosuppor ted participantswithpsychosocial disabilities often needed debrief and supported at end shifts support their own mental well-being,which loweredtheirownandsupervisors’ utilisatio nrates. Annual Pricing Review (page)foundtha tthe overhead percentage shouldbe increased to %tobetter align withestimate doverheads efficient providersinsector as observed Benchmarking Study adjusted survey’s unrepresentativenessand other recommendations being made by theReview would directly address some of costsproviders are carryingoverheadsextraordinary costsof providing disability services in Australia. This document was released under Freedom Information Act 1982 National Disability Insurance Agency.
DISCLOSURE LOG
National Disability Insurance Scheme – Disability Support Worker Cost Model 2020–21
href=“https://www.fairwork.gov.au/pay/minimum-wages/social-and-community-services-industry-pay-rates” rel=“nofollow”>industry-pay-rates
Disclosure Log
FOR OFFICIAL USE ONLY
DOCUMENT 33
ndis Delivered by the National Disability Insurance Agency
Pricing Reference Group Meeting: September 10th , 2020
Minutes
- Date: Thursday, October 7 th., 2020
- Time:
14--:16Location : Microsoft Teams meeting(Video Conference)| Attendees | |-| || Chair | Gerrie General Manager Provider and Markets \( s47F-person )
|| PSM Jim Independent Member\(s47F-person )
|| PSM JulieIndependent Member\ (s47F-person)\( || AM GraemeIndependent Member\ ( s47F-person )
Participating Observers nominated by CEO: Sarah Scheme actuary\ (s47F-person priv)
David Cullen Chief EconomistSecretariat:
Alison Project Officer Price Regulation Unit(s47F-person pri). Declaration of Conflicts Interest The PRG noted that Graeme is a member of Life Without Barriers; A member of Joblife Employment;A member of Attitude Foundation;a member of Pro Bono News Board for Probno News; It was noted that Graeme was no longer on the Summer Foundation. The previous minutes were confirmed. The chair informed that the NDIS pricing arrangements have been continued in response to COVID-19 pandemic, the price regulation unit has started work simplifying the NDIS guide preliminary consideration issues coming up soon,
Disclosure Log
Pricing Reference Group Meeting: October September 2020 Minutes
- SIL Review of Price Controls had discussions with four working groups of providers to provide feedback and information to the review, informing an Issues Paper that was released. Timeline for the Review being reviewed as well;and
- Financial analysis from Providers in a Financial Benchmarking Survey intended be discussed at next PRG meeting December 2020.
Forward Work Plan The paper “PRG (\text{Item}~{}^{[3]}.^{{}[.]})” forward work plan was presented to Prg by:
• Dr David Cullen chief economist Prg DISCUSSED this paper agreed proposed plan without amendment.
Update on NDIs cost model Disability Support Workers The paper “PRG (\text{Item}) update NDIS Cost Model disability support workers.” was presented to prg by:
- Dr david cullin Chief Economist the prg DISCUSED this paper AGREED recommendations made in it without further amendments see attachment A these minutes.
Geographical Reclassification Remote Areas This paper “Geographic reclassification remote areas.” was presented to prg by:
David s47F - personal priv Director Operations price regulation unit The prg DISCUSSED this paper AGREE further impact assessment required see Attachment B attached minute.
Operational Changes under $5K Assistive Technology Home Modifications The paper “Operational changes assistive technology home modifications quoting processes.” was presented the prg by Matthew s47F Branch Manager operations and housing support
the prg DISCUSSED with another review intended occur six months later.
2019–20 Assitive Tech Quote Benchmarking Report Paper PRG Item 4.2 Assistive Technology Benchmark Review“ was presented Prg by: • Dr david Cullen chief economist
Prg DISCUSSED report.
Publication of Ndis Disablity Support Worker Cost Model 2020/21
Paper PRG (\text{Item}~{}^{[3]}.^{{}[.]})“ ndis cost model for DSWs 2020-21.“ Presented to prg by: • Dr david cullin Chief Economist the prg DISCUSED it.
Disclosure Log
Pricing Reference Group Meeting: October September 2020 Minutes
Attachment A – Update to the NDIS Cost Model for Disability Support Workers
The PRG AGREED that the price limits in Table below should apply supports delivered disability support workers and determined derived from NDIS Disability Worker Cost Model December 2020
Disclosure Log
Pricing Reference Group Meeting: October September 2020 Minutes
Attachment B – Geographical Reclassification for Remote Areas
Section 1 Discussion:
Subsection A: PRG DISCUSSED current Isolated Towns Modification policy.
The PRG discussed the current isolated towns modification policy in detail, as outlined within section [Error! Reference source not found.] below this paper’s text content.
Subsection B: Further Review Agreement:
The PRG AGREED TO FURTHER REVIEW OF THE CURRENT ISOLATED TOWNS MODIFICATION POLICY PUBLISHED IN NDIA PRICE GUIDE AS FOLLOWING:
For planning and pricing purposes, the NDIA modifies Modified Monash Model (MMM) classification to some locations that are already classified as remote or very remote areas; however certain adjacent groups of non-classified remote/very-remote locations will be reclassified if they meet both criteria listed hereafter:
• Surrounded entirely with other remote/or very remote regions;
or
• Not contiguous directly connected to a metropolitan area region.In determining whether such location on mainland Australia coast including Tasmania is considered remotely located by ocean being regarded as part remoteness.
Disclosure Log
Forward Work Plan - Pricing Reference Group
| PRG Dates | Forward Workplan | |-| | 12 November 2020 |- Participant Consultations including IAG, Pricing Review preliminary consideration. Price deregulation presentation DSS. Simplifying Price Guide: Preliminary Consideration.| | 11 December 2020 |- Provider Challenge Session Survey Providers pricing arrangements programs Support Design Benchmarking Survey Design.| | 11 February 2021 |- Provider Challenge Session SIL Pricing Review further consideration Simplifying price guide final consideration.| | 11 March 2021 |- Participant consultations with IAG, Pricing review final report survey providers on pricing arrangements results considered.| | 15 April 2021 |- Provider challenge session benchmarking survey result consideration prices advice Board simplification price guide final consideration.| | 13 May 2021 |- Terms of reference for annual and therapy pricing arrangement reviews; consider price deregulation advice to board TBA (TBD).|
Disclosure Log
Pricing Reference Group Meeting: October 15th - 2020
Minutes
Date: Thursday ,October 15 th- Time :: 1:000 -:1145
Location: Microsoft Teams meeting (Video Conference)
Attendees
Chair:
Gerrie General Manager Provider and Markets
PRG Members:
deborah Independent Member Graeme AM independent member Jim PSM independent member Julie PSM independet member Lynne Independant member
Observers nominated by CEO:
sarah Scheme actuary David Cullen Chief Economist
Secretariat Alison Project Officer Price Regulation Unit Lisa DCEO,Markets Government Engagement
Declaration Of Conflicts Interest
The PRG noted that graeme is a member Board Life Without Barriers; A member Joblife Employment; A member Attitude Foundation; A member Advisory board Probono News; redacted s22(1)(a) (ii)- irrelevant material The prg noted Deborah has relatives who deliver services to NDIS participants.
Confirmation of Previous Meetings’ minutes
the prg raised one change previous meetings minute capture agreement for future discussion forward work plan in item.3-Minutes of Meeting September 9th 2020 . the proposed amendment official Minute Meeting OctoberSeptember 2nd found at AttachmentA.
Disclosure Log
Pricing Reference Group Meeting: October 15th, 2020 | Minutes
Update by Chair:
- At next meeting there will be presentation from Department Social Services representative about price deregulation work.
- Continued temporary measures NDIS pricing arrangements due COVID pandemic; new Price Guide Addendum capturing impacted locations as updated State Territory Governments.
Disclosure Log
For Official Use Only
Pricing Reference Group | Meeting: 15 October 2020 | Minutes
Attachment A — Minutes for Item 3.1. Forward Work Plan - 10 September 2020 Meeting
Forward Work Plan
- The paper PRG – 20200910, item Item (not clearly defined), titled “Forward Work Plan”, was presented to the PRG by:
- Dr David Cullen, Chief Economist.
The PRG discussed this document, agreeing on its inclusion in subsequent meetings.
Disclosure Log
Pricing Reference Group Meeting: October 15th - Minutes MR25/01967 FOI 24/25-2242
Attachment B – Capacity Building supports for early childhood intervention in natural settings
That PRG AGREED TO RECOMMEND to the Board of NDIA through its Chief Executive Officer subject other financial authorities signing off their relevant areas to introduce three new support items ‘Capacity Building Supports Early Childhood Intervention Natural Settings’.
From December first twenty twentieth that PRG AGREE recommend to board of NDIA through CEO subject other financial authorities sign off on their relevant areas following support items be added NDIS Support Catalogue in Support Category ‘capacity building improved daily living’ Outcome Domain Daily Living:
| Support Item Number | Support Item Name | Support Item Description |
|---|---|---|
| 15_XXX_0118_3_ | Early Child Interventions Other Therapy |
||supports must delivered suitably qualified allied health professional or early child educator home community and education centres.
||must Physiotherapist. Home, community,
||Psychologist. Education centers.| ||delivery by a Psychologist. Home Community and
||Delivery by an Allied Health Professional or Educator at the Centre (Home, Community, School). The service is provided within the context of the child’s natural environment including but not limited to: school classrooms, homes, communities, playgroups, childcare services, kindergartens, preschools, day care facilities etc., where children with disability are typically found during normal waking hours outside formal schooling hours; delivery by a suitable qualified psychologist who has experience working with young children with disabilities and/or autism spectrum disorder (ASD) as well as other developmental delays and disorders such as ADHD, anxiety, depression, learning difficulties, speech-language impairments, sensory processing issues, motor coordination problems, communication needs, social-emotional challenges;
||
||The support item in Recommendation 2(a) should be subject price regulation limits aligned existing ECI Capacity Building supports for relevant therapist standard remote very remote loadings definition time week set out NDIS Price Guide Direct Service Provision Non-Face-to Face Service Provider Travel Cancellations NDIA Report Writing subject rules claims set out NDIS Price Guide TTP.