What is TTP and How Will It Affect Me?

By July 24, 2019News

The new NDIS Price Guide has introduced a number of changes to improve sustainability of the industry. This will in turn benefit participants, who will receive better access to higher quality care. One of the most notable changes is the introduction of Temporary Transformation Payment (TTP) rates. Providers will now be able to charge a higher rate for services without affecting participants’ funding.

So, what exactly is Temporary Transformation Payment (TTP) and what does it mean for me, the participant?

TTP is a 7.5% loading on top of the new base price limit laid out in the NDIS Price Guide. This is an increase of 18% from last financial year’s rate.

If you’re wondering “does that mean I will get fewer services for my funding”? Don’t worry! The answer is no. Any unspent amount from your funding from 1st July 2019 has increased, and new plans from this financial year have already incorporated an increase of 18% to ensure you’re not out of pocket. You don’t need to get a plan review to access the additional funds.

The best news is that where other providers may charge the TTP rate, Afea Care Services’ prices will remain in line with the non-TTP rates. This means you will have 7.5% more funding in your pocket to use on services if you remain with Afea.

In a nutshell:

  • TTP is a 7.5% loading that is applied to the new base rates
  • This is an increase of 18% on rates from last year’s Price Guide
  • Any unspent amount from your funding from last financial year has also been increased (indexed) by 18% to accommodate the loading
  • New plans as of this financial year have already increased by 18%, with no need for a plan review
  • TTP will remain in place for five years, decreasing by 1.5% (out of the 7.5%) every year from next financial year
  • Afea will not be charging TTP rates, which means you will have more funding to spend on your support services, compared to other providers who charge TTP rates

Here is an example of what the loading looks like on standard weekday rates 6pm-8pm.

TTP has replaced Temporary Support Overheads (TSO) loading, which was put in place initially for providers to be able to cope with costs associated with transitioning from block funding to NDIS funding. Even with this in place, many providers have had trouble operating at current and previous price points.

There are a number of contributing factors that have caused this strain on providers, including: higher overheads since NDIS rollout, challenges adapting to unit pricing from block funding, lower utilisation of workers and higher labour costs.

With TTP funding, we’re optimistic that the industry can begin to stabilise, giving clients security that their much-needed services will be delivered sustainably for the foreseeable future.

Although Afea is eligible to access higher price limits through TTP, we will be sticking with the non-TTP rates (charging the standard base rate of $52.85 instead of $56.81). This means our clients can get additional hours of support from their budget in comparison to other providers that are charging TTP rates.

Through Afea’s investment in technologies, we have been able to navigate the change in the industry more efficiently than many other providers. This has resulted in lower overheads, which is how we are able to pass this value onto our clients.

If you would like more information about anything you’ve read, call us today on 1300 65 11 33.

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