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Shattering the Myths: Unveiling the Truth About NDIS – Part 2

The National Disability Insurance Scheme (NDIS) has been one of the most significant social reforms in Australia in recent times. It is designed to provide financial support and services to people with disabilities, enabling them to lead more independent and fulfilling lives. 

However, despite its noble intentions, there are still many misconceptions and myths surrounding the NDIS. In the second part of this series, we aim to shatter more of these myths and unveil the truth about the NDIS. By doing so, we hope to provide a clear understanding of the NDIS and help individuals with disabilities and their families make informed decisions about their support needs.

Myth #5: You’ll Receive Your NDIS Funds Straight to Your Bank Account

Many people believe that once they are approved for NDIS funding, the money will be deposited directly into their bank account. However, this is not entirely true. While some NDIS participants do receive their funds directly, there are several factors that can affect how the funding is distributed. 

For instance, some participants may choose to have their funds managed by a plan manager or support coordinator who will manage their budget and pay for their services. Others may opt for the NDIA to manage their funds, meaning they must submit invoices and receipts to receive payment. It’s important to discuss your preferred payment method with your NDIS planner to ensure you receive your funding in the most suitable way for you.

Myth #6: NDIS are Payments Taxable

NDIS funding is not taxable as it is considered a government grant or subsidy. This means that the money received from the NDIS is not considered income and will not be subject to income tax. However, it’s essential to note that you are ineligible to claim a tax deduction for expenses paid for with NDIS funds. For example, if you use NDIS funding to purchase a wheelchair, you cannot claim a tax deduction for the cost of the wheelchair on your tax return.

Also, if the NDIS funding is used to pay for goods or services that are taxable, such as hiring NDIS providers in Sydney who charge GST, then the GST portion of the payment will still need to be paid. It’s recommended to consult with a financial advisor or tax professional for a more detailed understanding of how NDIS funding may affect your individual tax situation.

Myth #7: The NDIS is Means-Tested

This is partially true. The NDIS does take into account a person’s income and assets when determining their eligibility for funding. However, it is not a means-tested program in the same way that Centrelink benefits are means-tested. Rather than simply looking at a person’s income, the NDIS considers a range of factors, including the person’s disability, their support needs, and their goals and aspirations. This means that even if a person has a high income or significant assets, they may still be eligible for NDIS funding if they meet the other criteria. Make sure you work with an NDIS-registered provider to determine your eligibility and to receive the appropriate supports and services under the NDIS.

Myth #8: NDIS Decision is Final, and You Can’t Make an Appeal for It

This is not true. If a person is unhappy with a decision made by the NDIS, they have the right to make an appeal. The appeal process involves requesting a review of the decision by the NDIS and, if necessary, escalating the appeal to an independent tribunal. The NDIS provides information and support to help participants through the appeal process. It’s important to note that there are time limits for making an appeal, so it’s recommended to act quickly if you wish to appeal a decision.


The National Disability Insurance Scheme (NDIS) is a complex and often misunderstood program. While it has been successful in providing support and services to many Australians with disabilities, there are still myths and misconceptions that persist. By debunking these myths, we can work towards creating a more informed and inclusive society where all individuals have access to the support and resources they need to thrive.

If you’re interested in accessing NDIS-funded services, it’s important to work with a registered provider like OSAN Ability Assist. We offer a range of disability services in Sydney, including domestic assistance, personal care and disability housing in Sydney and surrounding areas. Our team is dedicated to helping you navigate the NDIS and access the services you need to achieve your goals. Contact us today to learn more about the kind of services we provide and how we can support you on your journey.

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