Where $26 Billion Went (And Why NDIS Providers Should Absolutely Care)

If you want to know what really matters in the NDIS right now, follow the money. Thanks to a recent Freedom of Information release, we now know exactly where $26 billion worth of NDIS payments to the largest 1000 providers for Agency and Plan Managed participants landed between January 2024 and January 2025.

Roughly $17 billion went directly from the NDIA to registered providers — mostly for participants with NDIA-managed plans. The other $9 billion? That was processed through plan managers — on behalf of participants with plan-managed plans. And of that $9 billion, a staggering $8 billion went through just the top 10 plan management companies.

For registered providers — whether you’re in supported accommodation, therapies, community participation or supports coordination — this shift changes everything about how payments flow in the NDIS. Because in the space of just a few years, plan management has gone from a niche option to the dominant financial model for participants — and a critical commercial reality for providers.

The rise (and rise) of plan management

Rewind to around 2017, and only about 13% of NDIS participants were using a plan manager. Fast forward to 2019, and that had jumped to 34%. Today, nearly 60% of all NDIS participants are plan-managed and for new participants coming into the Scheme, plan management is overwhelmingly the preferred choice.

That growth shows no signs of slowing. Which means for providers, plan managers aren’t just part of the system — they are the system.

Why this matters for providers

In theory, more participants using plan management should be good news for providers. It means more participants can access your services, more choices for them, and a larger market for you.

But in practice? The growth of plan management brings a new set of commercial realities that every registered provider needs to understand. While Agency-managed payments come with their own share of headaches, plan-managed payments create a different set of risks altogether:

• No direct contract between provider and plan manager;
• Unclear duties owed to providers; and
• Limited remedies when payments are delayed, queried or refused.

At Lavan, we’re seeing this play out across the board — not just in SIL, but also in therapy, support coordination, and community participation. Legitimate supports are delivered, invoices are submitted, but payments are delayed — sometimes indefinitely. And often, there’s no obvious playbook for what happens next.

And then there’s the future

Of course, none of this is standing still. Following the NDIS Review, we are seeing a shift away from the current role of plan managers, with a transition to PACE and the proposed introduction of ‘Navigators’ to support participants with budgeting, sourcing supports, and optimising their plans. While the Government hasn’t committed to a timeline for the Navigator function, the direction of travel is clear: fewer plan managers, tighter regulation, and probably a more standardised approach to provider payments. That might be welcome news for providers – but we’re not there yet.

What should providers be doing now?

Until the system changes — and even when it does — registered providers need to get sharp about their payment risk:

• Know your intake process inside out;
• Lock in clear and compliant service agreements;
• Document, Document, Document;
• Track funding balances (and have measures in place to ensure visibility);
• Invoice cleanly and promptly;
• Build relationships with plan managers, not just transactions; and
• Act early when payments start drifting.

Because in a market where $9 billion a year flows through plan managers — and $8 billion of that sits with just 10 companies — following the money is only half the job. Making sure some of it lands in your account?  That’s the part providers need to get really good at.

For advice, contact Amber Crosthwaite at 9288 6931 or amber.crosthwaite@lavan.com.au.

Disclaimer

The information contained in this publication does not constitute legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you may have before relying or acting on this information. The Lavan team are here to assist.