NDIS rules can treat compensation that includes amounts for supports as relevant to a participant's plan. This may lead to a reduction in future NDIS funding or repayment of past supports. The official NDIS calculator gives an estimate only, and current guidance must be checked.
What counts as compensation
The NDIS considers whether a payment is compensation for the participant's disability or injury, particularly where it includes an amount for care, therapy, equipment or other supports the NDIS might otherwise fund. A birth injury settlement that includes future care costs is likely to be relevant.
Because the NDIS is updating its guidance for new legislation, the precise definitions and their application may change. Families should not rely on older articles, forum posts or past experiences of other participants. A solicitor and, where appropriate, a loss expert should confirm the current rules at the time of settlement.
Recovery of past supports
Where a participant receives compensation that covers supports already funded by the NDIS, the scheme may seek to recover some of that funding. The connection between the compensation and the supports funded is central. Records of what the NDIS paid, and when, help the legal team understand the likely position.
Families can request plan documents and funding records so the solicitor can compare them with the care costs claimed in the litigation.
How a reduction amount may affect future plans
Compensation may also affect future NDIS funding. In general terms, an amount may be identified that reduces the support the NDIS funds after the settlement, so that the compensation is used for supports first. How this amount is worked out, and how long it applies, depends on current rules.
This matters for family planning. If future NDIS funding is reduced, the settlement must be adequate to pay for care that the scheme would otherwise have provided.
Using the official estimator
The NDIS offers a compensation calculator that estimates the compensation reduction amount. It is not a tool for estimating what a birth injury claim is worth, and it does not replace advice. Its results depend on the information entered and on rules that may be under revision.
Families may find it useful for understanding the concepts, then discussing the output with their solicitor.
Questions for settlement planning
NDIS issues should be considered before an offer is accepted, not afterwards. Useful questions include:
- Has the claim valuation accounted for possible NDIS recovery and future reduction?
- Which parts of the settlement are for care and supports, and how are they documented?
- Has current NDIS guidance been checked close to the settlement date?
- Who will notify the NDIS, and when?
For your next conversation
- Current NDIS plan and any previous plans for the child
- NDIS funding and payment records showing supports already paid
- Care and therapy expert reports used in the claim
- A note from the solicitor confirming the NDIS guidance version checked
- Any printout of the official calculator estimate with the inputs used
Common questions
Could our child lose NDIS support completely after settlement?
It depends on the settlement, the amount for supports and the NDIS rules current at that time. A reduction may apply for a period rather than permanently, but this must be checked. Ask your solicitor to explain the likely effect on future plans before accepting any offer, using current NDIS guidance.
Does the NDIS calculator tell us what our claim is worth?
No. The calculator estimates how compensation may affect NDIS funding. It does not assess liability, injury or the value of a claim. The NDIS has indicated its guidance is being updated, so any result should be discussed with a solicitor who has checked the current rules.
Sources & further reading
These references support the topic’s starting points. They do not determine the facts, standard of care or law applicable to an individual matter.