A Simple Guide to NDIS Terminology (For Families New to the System)

Starting your journey with the National Disability Insurance Scheme (NDIS) can feel like learning a whole new language. If you're a parent, carer, or new participant, you might feel overwhelmed by the number of acronyms, technical terms, and government jargon thrown your way.

The good news? You don’t need to become an expert overnight.

This guide is designed to break down the most common NDIS terms in plain, everyday language — so you can feel more confident navigating the system, speaking with providers, and making the best decisions for your loved one.

💡 Key NDIS Terms and What They Actually Mean

Here’s a breakdown of the most commonly used NDIS terms you’re likely to come across.

NDIS

Short for National Disability Insurance Scheme. This is the government program that provides funding and support to Australians with a permanent and significant disability. It’s designed to give participants more choice, control, and independence.

NDIA

The National Disability Insurance Agency. This is the government body responsible for running and overseeing the NDIS.

Participant

A person who has been approved to receive support through the NDIS. Participants can be children or adults, and every participant has their own individual NDIS plan.

Support Coordinator

Support Coordinators help participants understand their NDIS plan, find service providers, book supports, and build independence. They can also help with navigating challenges or changes in circumstances. Not every plan includes Support Coordination — it must be funded separately under Capacity Building.

Local Area Coordinator (LAC)

LACs are often the first point of contact for families entering the NDIS. They help people apply for the NDIS, connect to community supports, and sometimes help implement plans. However, they’re not the same as Support Coordinators — they generally offer less hands-on support.

Plan Manager

If you don’t want to manage your NDIS invoices yourself, a Plan Manager can do it for you. They receive your invoices from service providers and pay them on your behalf. They also help you keep track of your budget. Choosing plan management gives you more flexibility than being agency-managed.

Stakeholder

A stakeholder is anyone who plays a role in a participant’s life and support journey. This can include family members, support workers, therapists, support coordinators, plan managers, teachers, or even peers. While not all stakeholders are paid providers, they all contribute to helping the participant work toward their NDIS goals.

📂 Understanding the Types of Funding in Your NDIS Plan

NDIS plans are broken into different budget categories, each with its own rules:

Core Supports

The most flexible budget. This includes everyday support like:

• Assistance with daily living tasks (e.g. getting dressed, showering)

• Community access (e.g. support workers for outings)

• Transport

• Consumables (e.g. continence aids, low-cost assistive tech)

Capacity Building

Supports that help you build independence and skills. This includes:

• Therapy (e.g. OT, speech, psychology)

• Support Coordination

• Employment assistance

• Training for carers

• Life skills programs

Capital Supports

This budget covers larger purchases like:

• Assistive Technology (e.g. communication devices, wheelchairs)

• Home modifications (e.g. bathroom rails)This funding must be used exactly as outlined in the plan.

🧠 Other Useful Terms to Know

Goals

Your NDIS plan is built around your personal goals — the things you or your child want to achieve with the help of funded supports. These might include building friendships, improving communication, becoming more independent, getting a job, or learning daily living skills like cooking or budgeting.

Your goals don’t need to be complex — they just need to be meaningful and relevant to your life. They guide your funding decisions and ensure your supports are tailored to your unique journey. Every support you use should link back to one or more of these goals, even if the connection is indirect (e.g. attending a social group to build confidence).

Service Agreement

A service agreement is a written agreement between a participant (or their representative) and a service provider. It outlines:

• What services will be provided

• How much they will cost (including hourly rates)

• Start and end dates

• How supports will be delivered

• Cancellation and notice periods

• Terms for ending the agreement

While not legally required, service agreements are best practice. They protect both the participant and the provider by clearly setting expectations — and can help avoid misunderstandings down the track.

Reasonable and Necessary

This is a legal phrase the NDIA uses to decide whether a support will be funded under the NDIS. To be considered "reasonable and necessary," a support must be:

• Directly related to the participant’s disability

• Likely to be effective and based on evidence

• Value for money compared to other options

• Not more appropriately funded by another service system (e.g. education, health, or housing)

It must also help the participant pursue their goals, improve function, or increase social and economic participation.

Line Item

Every service in the NDIS Pricing Arrangements and Price Limits (PALP) has a specific number called a line item. This is how providers identify the type of support being delivered when they claim from your plan.

While participants don’t need to memorise line items, it can be helpful to understand how they work — especially if you’re managing your own budget or want to ensure you're being charged correctly.

Plan Review

NDIS plans are usually reviewed every 12 months, but the review frequency can vary depending on your needs and circumstances.

A plan review is your opportunity to:

• Reflect on what’s working and what’s not

• Update your goals

• Adjust funding if your needs have changed

• Discuss any new supports or therapies you’d like to try

You can also request a plan reassessment earlier if your situation changes significantly — this is known as a Change of Circumstance. Examples include:

• A new diagnosis

• Starting or finishing school

• A change in your living situation or support needs

• Hospital admission or discharge

• Changes in your informal support network (like a carer no longer being available)

If something big changes, you can submit a change of circumstance form through the NDIS portal or speak to your LAC or Support Coordinator.

💬 Feeling Overwhelmed? You’re Not Alone.

Even experienced families still get tripped up by NDIS jargon. That’s why it’s important to work with providers who are transparent, helpful, and willing to explain things clearly.

You should never feel embarrassed to ask, “Can you explain what that means?” — because your understanding matters.

The more confident you feel with the language of the NDIS, the more empowered you'll be to get the right supports in place.

🧭 Need Help Navigating Your NDIS Plan?

If you're looking for a trusted Support Coordinator or Plan Manager to help you understand your plan and make the most of your funding, check out our NDIS Provider Directory. We’ve listed reliable, experienced providers who genuinely care about helping participants reach their goals.

📍 Based on the Gold Coast

📝 Contact us here