Document ID: chunk:federal_register_of_legislation:C2024A00081:clause:1_32e:p1
Version: federal_register_of_legislation:C2024A00081
Segment Type: clause
Provision Reference: sch 1 cl 32E (pt 1/2)
Character Range: 40205–42896

32E  Reasonable and necessary budget—entitlement to flexible funding or stated supports
 (1) A participant's reasonable and necessary budget must provide that funding will be provided under the plan to or in relation to the participant in accordance with subsections (2) and (3), so far as they are applicable.

Flexible funding
 (2) If the needs assessment report for the plan indicates that the participant needs at least some supports that are NDIS supports but not stated supports for the participant, the reasonable and necessary budget must provide:
 (a) that certain funding (flexible funding), up to a specified amount (the total funding amount), will be provided under the plan to or in relation to the participant for those supports; and
 (b) that the flexible funding may be spent on any NDIS supports for the participant and only on such supports, subject to any restrictions under subsection 32F(6) that require the funding to be spent on particular supports.
Note 1: For additional rules about flexible funding, see section 32F.
Note 2: The total funding amount for flexible funding is worked out under section 32K.
Note 3: The reasonable and necessary budget may specify requirements relating to the acquisition or provision of supports (see section 32H).
Note 4: A debt may arise if funding is spent on supports that are not NDIS supports or if it is spent other than in accordance with the plan (see subsections 46(1) to (1B) (acquittal of NDIS amounts) and 182(3) (debts due to the Agency)).

Stated supports
 (3) If:
 (a) the needs assessment report for the plan indicates that the participant needs a particular support or class of supports; and
 (b) the support, or each support in the class, is both an NDIS support and a stated support for the participant;
the reasonable and necessary budget must provide, for each such support or class of supports:
 (c) that certain funding will be provided under the plan to or in relation to the participant for that support or class of supports; and
 (d) that the funding provided for that support or class of supports may be spent:
 (i) only on the support, or supports in the class, for which the particular funding is provided; and
 (ii) only on supports that are NDIS supports for the participant.
Note 1: For additional rules about stated supports, see section 32G.
Note 2: The reasonable and necessary budget may specify requirements relating to the acquisition or provision of supports (see section 32H).
Note 3: A debt may arise if funding is spent on supports that are not NDIS supports or if it is spent other than in accordance with the plan (see subsections 46(1) to (1B) (acquittal of NDIS amounts) and 182(3) (debts