NDIS Plan Management vs. Self-Management: Which Is Better for You?

By Sophie Mitchell

Updated Apr 21, 2025

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The National Disability Insurance Scheme (NDIS) is designed to help people with disabilities live their best lives by providing the necessary funding and support services. When it comes to managing your NDIS plan, there are two primary options: Plan Management and Self-Management. Each of these options offers distinct benefits and challenges, and the right choice for you depends on your personal circumstances, preferences, and level of involvement. In this post, we will explore the differences between NDIS Plan Management and Self-Management, highlighting their pros and cons, to help you make an informed decision.

What is NDIS Plan Management?

NDIS Plan Management is a service that allows you to have your NDIS funding managed by a registered plan manager. This professional service provider handles the financial and administrative aspects of your plan. They can help with tasks such as:

• Paying providers for services rendered

• Keeping track of your budget

• Ensuring that you are staying within your NDIS funding limits

• Managing invoices and receipts

• Offering advice on how to use your funding efficiently

With Plan Management, you still have full control over your choice of NDIS service providers, but the financial management and administrative work are taken care of by the plan manager. This can offer a great deal of peace of mind for participants who prefer to focus on their care needs without being bogged down by paperwork.

Pros of NDIS Plan Management:

• Expert financial oversight: Plan managers are knowledgeable in the rules and regulations surrounding NDIS funding, ensuring you comply with all necessary guidelines.

• Time-saving: You don’t have to worry about the complex administrative tasks that come with managing your NDIS funds. This allows you to focus on your care and wellbeing.

• Choice of providers: You can select any registered or unregistered provider, offering greater flexibility.

• Support and guidance: Plan managers can provide advice on how to spend your NDIS funds effectively.

Cons of NDIS Plan Management:

• Costs: Plan management services are not free, and they will be deducted from your NDIS funding.

• Less control over finances: Since a third party is handling the financial management, you may have less control over how your funds are spent.

What is Self-Management?

Self-management of your NDIS plan gives you complete responsibility and control over how your NDIS funds are used. This means you will be in charge of:

• Selecting and negotiating with service providers

• Organizing payments to providers

• Managing invoices and receipts

• Ensuring that you stay within your budget

• Reporting to the NDIS about how your funds have been used

This option is ideal for individuals who are comfortable managing their own finances, prefer a hands-on approach to their NDIS plan, and want the maximum control over how their funds are spent.

Pros of Self-Management:

• Complete control: You have full control over your NDIS funds, including where and how the money is spent.

• Flexibility in provider selection: You are free to choose both registered and unregistered providers.

• Cost-effective: Since there are no fees for plan managers, you could save on the administrative costs associated with Plan Management.

• Personalized spending: You can customize your NDIS budget and spending to fit your individual needs.

Cons of Self-Management:

• Time-consuming: Managing your own plan can be a significant time commitment, especially if you have multiple providers or complex services.

• Administrative burden: You are responsible for tracking invoices, ensuring timely payment of all services, and complying with NDIS rules and regulations.

• Risk of overspending: Without proper knowledge, there’s a risk of mismanaging your funds or exceeding your budget, which could result in penalties.

• Need for financial skills: Self-management requires a solid understanding of financial and administrative processes, which can be overwhelming for some participants.

Comparing Plan Management and Self-Management

Which Option Is Right for You?

The decision between NDIS Plan Management and Self-Management depends largely on your needs, abilities, and preferences. Let’s break down who might benefit most from each option:

1. Choose Plan Management if:

   • You prefer to have someone else handle the financial and administrative aspects of your plan.

   • You want expert support and guidance to ensure you are using your funding correctly.

   • You have a busy lifestyle or prefer to focus on receiving care rather than managing your plan.

   • You want the flexibility to choose both registered and unregistered providers.

2. Choose Self-Management if:

   • You want full control and flexibility over your NDIS funding and service providers.

   • You are comfortable with managing the finances, paperwork, and compliance requirements of your plan.

   • You have the time and skills to stay organized and keep track of your budget.

   • You want to save on the administrative costs associated with plan management services.

Conclusion

At Ambition Health Group, we recognise that every individual’s situation is unique. Take some time to consider your own preferences, needs, and abilities before making a decision. You can always consult with your NDIS planner or a trusted advisor, such as our team, to help you navigate the options and ensure you make the best choice for your situation.