Temporary Transformation Payment (TTP) in NDIS
The National Disability Insurance Scheme (NDIS) has significantly changed how disability support services are funded and provided in Australia. Among these changes is the Temporary Transformation Payment (TTP), which is vital in assisting eligible service providers during their transition to the NDIS framework. We will look at the key aspects of TTP, its purpose, how it works, and the eligibility criteria for providers.
What is TTP?
Temporary Transformation Payment (TTP) is an additional cost that eligible service providers can charge as they transition to working within the NDIS system. It was introduced to support providers during the shift to the NDIS’ new funding model.
The Purpose of TTP
Implementing the NDIS resulted in changes to pricing structures and funding for service providers. As providers transitioned from previous funding schemes to the NDIS, they faced adjustments in the prices they could charge and the funding they received.
Additionally, becoming an NDIS registered provider involved handling more paperwork and adhering to new regulations, which required time and resources.
The NDIS recognised that this transition might impact some providers, leading to potential financial challenges. Therefore, the TTP was introduced to smoothen this process and ensure a stable shift to the NDIS framework.
Understanding TTP Payments
TTP is calculated as a percentage added to the base rate of specific services. It applies to support categories such as Assistance with Daily Life, Assistance with Social and Community Participation, and Finding and Keeping a Job.
Each year, the TTP percentage decreases by 1.5%. For instance, in the 2020/2021 financial year, the TTP was set at 6%; by July 2021, it reduced to 4.5%. This gradual reduction is expected to continue until July 2024, when the TTP payment will no longer exist.
Eligibility and Compliance
Not all service providers are eligible to charge TTP. To qualify for TTP services, providers must meet specific criteria, which include:
- Publishing Services: Providers need to prominently display their services on their website and make them available to participants.
- Business Contact Details: Providers must list their up-to-date business contact details on the Provider Finder platform on the myplace portal.
- Benchmarking Survey: Providers are required to participate annually in the NDIA benchmarking survey.
There is no formal registration process for TTP providers. Instead, providers must demonstrate their intent to meet the TTP requirements by making a claim through the TTP support item in the payment system.
Temporary Transformation Payment (TTP) is vital in supporting service providers during their transition to the NDIS funding model. By providing an additional payment and gradual reduction over time, TTP ensures a smooth shift for service providers, leading to continued high-quality support for NDIS participants.
Understanding the eligibility criteria and compliance requirements is crucial for providers seeking to utilise TTP to its full potential. As the NDIS continues to evolve, TTP remains a valuable mechanism in facilitating the delivery of disability support services in Australia.
Sunrise2Sunrise charges TTP as per the NDIS price guide.