Overview of the Three Management Types
Every NDIS participant must have at least one of three plan management arrangements. The management type is set during the planning meeting and recorded in the participant's NDIS plan. It determines who pays providers, who monitors the budget, and critically for providers — whether registration is required.
| Management Type | Who Pays Providers | Registration Required? | Flexibility |
|---|---|---|---|
| NDIA-Managed | NDIA (via myplace portal) | Yes — must be registered | Low — registered providers only |
| Plan-Managed | Plan manager pays on participant's behalf | No — unregistered providers allowed | Medium — any provider, plan manager oversight |
| Self-Managed | Participant pays directly | No — any provider | High — participant has full control |
Each management type has different implications for your organisation. Understanding these differences upfront will save your team significant time and prevent compliance problems — such as claiming from the NDIA portal for a participant who is self-managed, or failing to invoice a plan manager because you assumed the participant was NDIA-managed.
NDIA-Managed (Agency-Managed): How It Works
NDIA-managed — commonly called "agency-managed" — is the most common arrangement for participants who are new to the NDIS or who have chosen not to take on the administrative responsibility of managing their own funds. Under this arrangement, the NDIA holds the participant's budget and providers claim payment directly from the NDIA's provider portal (myplace).
How claiming works for NDIA-managed participants
When you deliver a support to an NDIA-managed participant, you log into the NDIS myplace provider portal and submit a payment request. The system automatically checks the participant's plan budget, verifies the support catalogue item, and processes payment — typically within two to three business days.
To claim successfully, you need:
- The participant's NDIS number (nine digits)
- The correct support catalogue item code
- The delivery date and quantity (hours or units)
- A valid service booking linked to the participant's plan
Service bookings for NDIA-managed participants
Before you can claim, you must have a service booking in place with the participant. A service booking is an agreement between the provider and the NDIA that reserves funding in the participant's plan for your organisation's services. It should match your service agreement and reflect the supports you plan to deliver.
Critically, the service booking must be set up before you start delivering services. A common mistake new providers make is delivering supports without a service booking in place and then being unable to claim. The NDIA will not backdate service bookings.
Registration requirement for NDIA-managed participants
To deliver supports to NDIA-managed participants, your organisation must be a registered NDIS provider. The NDIA's portal will not process claims from unregistered providers. This is the most significant compliance requirement for providers targeting NDIA-managed participants — and it is why SIL providers must complete their certification audit before the 1 July 2026 deadline.
SIL participants are predominantly NDIA-managed. SIL funding (Core Supports — Assistance with Daily Life) is typically managed by the NDIA directly, meaning SIL providers must be registered to claim. From 1 July 2026, all SIL providers must complete registration. Unregistered organisations delivering SIL after this date cannot legally claim from the NDIA portal. Start your certification audit preparation now — the SIL Rescue Kit gives you 65 audit-ready documents.
Plan-Managed: The Role of the Plan Manager
Plan management is a funded support in the participant's plan (Capacity Building — Improved Life Choices, support line 09). The participant engages a registered plan manager, who receives their funding on their behalf and pays provider invoices.
What plan managers do
A registered plan manager acts as a financial intermediary between participants and providers. Their obligations include:
- Receiving NDIS funds from the NDIA into a separate trust account
- Paying provider invoices on behalf of the participant
- Providing regular statements of fund usage to the participant
- Checking that claims align with the participant's plan and the NDIS Price Limits
- Notifying the participant if their budget is at risk of being exhausted
- Maintaining records and being subject to NDIS Commission audits themselves
Why providers prefer plan-managed participants
Many providers find plan-managed participants straightforward to work with because:
- The provider can be unregistered — increasing market access
- Payment comes from the plan manager's trust account, not the NDIA portal
- Invoicing is predictable — submit your invoice, plan manager pays within the agreed timeframe
- Budget oversight sits with the plan manager, not with your organisation
Documentation for plan-managed participants
Invoices submitted to plan managers must be detailed. Plan managers are required to audit the invoices they pay, and the NDIS Commission can audit plan managers — meaning the documentation trail runs through your invoice. A good invoice for a plan-managed participant includes the participant's NDIS number, support dates and hours, the support catalogue item code, and unit price.
You still need to maintain your own shift notes and service records. The plan manager pays the invoice but does not hold your session records — those must remain in your organisation's case management system for your own audit purposes.
Self-Managed: Participant Control and Provider Implications
Self-management gives participants the most control over their NDIS funding. The NDIA transfers funds directly into the participant's nominated bank account, and the participant pays providers directly. Participants must keep their own financial records and report spending to the NDIA.
Who can self-manage?
Participants who wish to self-manage must demonstrate to the NDIA that they have the capacity to manage funds appropriately. The NDIA considers factors including the participant's financial literacy, their support network, and whether they have experience managing money. Nominees, legal guardians, or trusted family members can assist with self-management for participants who cannot manage independently.
Provider implications of working with self-managed participants
Working with self-managed participants means:
- You do not need to be registered — any provider can work with a self-managed participant
- Pricing can be negotiated — price limits do not apply for self-managed participants
- Payment comes directly from the participant, not from the NDIA
- You may need to issue a tax invoice and wait for the participant to process payment
- If the participant mismanages their funds, you may not get paid
Self-managed participants carry higher payment risk. If a participant runs out of funds, spends money on non-NDIS supports, or disputes an invoice, you do not have the NDIA's payment infrastructure to rely on. Always have a signed service agreement with clear payment terms, and consider invoicing weekly rather than monthly when working with self-managed participants.
Risks of self-management for participants
While self-management offers freedom, it also carries risks for participants. The NDIA can and does audit self-managed participants, and funds spent on non-NDIS-approved items must be repaid. Participants can lose their self-management status if they misuse funds. Providers working with self-managed participants should ensure their service agreements clearly describe the supports being delivered and link them to the participant's NDIS goals — this protects both parties if the NDIA queries a claim.
Combination Management
Many NDIS participants use a combination of management types across their plan. For example:
- Core Supports: NDIA-managed (requiring registered provider)
- Capacity Building: Plan-managed (through a plan manager)
- Capital Supports: Self-managed (participant pays directly)
As a provider, you must understand which management type applies to the specific supports you deliver. A support worker delivering Core Supports to a participant may need to claim through the NDIA portal, while the same organisation's occupational therapist billing for Capacity Building therapy may invoice through the plan manager instead.
When onboarding a new participant, always review each section of their NDIS plan to identify the management type for every support category you will deliver. Document this in your service agreement and make it clear in your internal processes.
Impact on Providers: Registration and Claiming
The management type a participant uses has a direct impact on your organisation's compliance obligations. This is summarised in the table below:
| Management Type | Registration Required? | How You Claim | Price Limits Apply? |
|---|---|---|---|
| NDIA-managed | Yes — must be registered | NDIS myplace portal | Yes — NDIS Price Limits apply |
| Plan-managed | No | Invoice the plan manager | Yes — plan managers must comply with Price Limits |
| Self-managed | No | Invoice the participant directly | No — price is negotiated between provider and participant |
Preparing for your NDIS certification audit?
The SIL Rescue Kit includes a complete service agreement template, shift notes template, and 63 other audit-ready documents. Everything you need to walk into your certification audit with confidence.
Get the SIL Rescue Kit — $297Documentation Requirements by Management Type
Regardless of management type, your clinical and support records must meet the NDIS Practice Standards Core Module — particularly Outcome 2.3 Information Management. The management type affects how you claim, but it does not change what records you must keep internally.
The following documentation is required regardless of management type:
- Signed service agreement that references the participant's NDIS plan
- Shift notes or session records for every support delivered
- Records of start and end times for each support session
- Documentation linking supports to participant's NDIS goals
- Incident reports for any incidents during support delivery
- Records of participant consent for the services delivered
- Worker screening clearance records for all staff
The free NDIS Notes Rewriter tool can help your support workers write NDIS-compliant shift notes quickly — goal-referenced, professional, and audit-ready.
How to Identify Management Type from a Participant's Plan
When a new participant shares their NDIS plan with you, the management type is clearly stated for each funding category. Look for the section titled "How your plan will be managed" or review the budget summary pages, which list each support category alongside the management type.
The language used in NDIS plans:
- "Agency managed" = NDIA-managed (you claim through the portal)
- "Plan managed" = plan manager is named (you invoice them)
- "Self managed" = participant pays you directly
Always request a copy of the participant's current NDIS plan as part of your onboarding process. The plan is the source of truth for what supports are funded, what management type applies, and what goals the participant is working toward. Without a current plan, you have no basis for your service agreement and no way to verify that the supports you deliver are funded.
For a deeper understanding of how supports are categorised and funded, see our guide to NDIS funding categories explained.
Important: This article provides general guidance about NDIS compliance requirements. It is not legal or professional advice. Requirements may change as the NDIS Commission updates its policies and Practice Standards. Always verify current requirements with the NDIS Quality and Safeguards Commission or a registered NDIS consultant before making compliance decisions.