NDIS Plan Management Explained: Self Managed vs Plan Managed vs Agency Managed

When families receive their first NDIS plan, there’s usually a sense of relief.

Funding has been approved. Supports are possible. Help is coming.

But then a new confusion begins.

Who pays the invoices?
Can I choose any provider?
Do I need to keep receipts?
What does “plan managed” even mean?

Many participants don’t realise that NDIS funding management options directly affect who they can hire, how flexible their plan is, and how much paperwork they will handle.

Choosing the wrong management type can restrict your provider choices and flexibility.

This guide explains NDIS plan managed vs self managed vs agency managed in plain language so families can choose the option that fits their situation.

The 3 Ways You Can Manage Your NDIS Funding

The NDIS gives you funding but you choose how it is managed.

There are three main management types:

1. Self Managed
2. Plan Managed
3. Agency Managed (NDIA Managed)

Each option affects:

• Who pays invoices
• Who keeps financial records
• Which providers you can use
• How flexible your funding is

Let’s break each one down clearly.

Self Managed NDIS (Maximum Control)

Self management means the participant (or their nominee) acts like the accountant.

You pay providers yourself and then claim reimbursement from the NDIS portal.

How It Works

• You hire providers directly
• You receive invoices
• You pay them
• You upload claims
• The NDIS reimburses you

You are responsible for tracking spending.

Advantages of Self Managed

• Choose any provider (registered or non-registered)
• Negotiate prices
• Buy approved supports online
• Faster direct payments
• Maximum flexibility

Self-managed participants often feel empowered because they control every decision.

Disadvantages of Self Managed

• Record keeping required
• Receipts must be stored
• Budget tracking responsibility
• Risk of accidental misuse
• Reimbursement delays if mistakes occur

Self management requires organisation and confidence with online systems.

Who It Suits

Self management works best for:

• Independent adults comfortable with admin
• Parents confident handling paperwork
• Families wanting full provider flexibility

It is not ideal if paperwork feels overwhelming.

Plan Managed NDIS (Most Popular Option)

Plan management is currently the most popular NDIS funding management option.

Under this model, a registered plan manager pays invoices on your behalf.

You do not pay providers directly.

How It Works

• You choose providers
• Providers send invoices to your plan manager
• The plan manager pays them
• You receive budget reports

You do not handle claims yourself.

Advantages of Plan Managed

• No invoice claiming required
• No financial paperwork
• Access to non-registered providers
• Budget tracking reports
• Financial oversight support

Plan management gives flexibility similar to self management without the admin stress.

Disadvantages of Plan Managed

• Slightly slower processing than direct self payment
• You depend on the plan manager’s efficiency

However, the workload is significantly reduced compared to self management.

You can read more about how this works in the official explanation of NDIS plan management explained by the NDIS.

Agency Managed NDIS (NDIA Managed)

Agency managed means the NDIA controls spending directly.

Providers claim payment from the NDIS portal.

You do not see invoices or manage payments.

How It Works

• You use registered providers
• Providers submit claims to NDIA
• NDIA pays them directly
• No invoices pass through you

It is the simplest model administratively.

Advantages of Agency Managed

• No paperwork
• No financial responsibility
• Straightforward setup

For some participants, especially those new to the scheme, this feels less stressful.

Disadvantages of Agency Managed

• You can only use registered providers
• Less pricing flexibility
• Fewer private worker options
• Limited negotiation

This means participants must use a registered NDIS provider in Perth.

If you prefer smaller or independent providers, agency management may restrict you.

Quick Comparison of NDIS Plan Management Types

Here’s an easy way to compare the three options without overcomplicating it:

Flexibility

• Self Managed → Highest flexibility
• Plan Managed → High flexibility
• Agency Managed → Most restricted

Administrative Work

• Agency Managed → Least paperwork
• Plan Managed → Moderate paperwork (handled by plan manager)
• Self Managed → Most responsibility and record keeping

Provider Choice

• Self Managed → Can use registered and non-registered providers
• Plan Managed → Can use registered and non-registered providers
• Agency Managed → Can only use registered providers

In short, the more control you want, the more responsibility you take on.

Which Option Is Best For Families?

There is no universal “best” option. It depends on lifestyle, confidence, and goals.

Parents With Busy Schedules

Plan Managed is often ideal.

It removes paperwork but keeps provider flexibility.

Independent Adults

Self Managed may suit those comfortable managing claims and budgets.

It offers maximum control.

First Plan Recipients

Some families start with Agency Managed for simplicity, then change later once they understand the system better.

Participants Wanting Independent Workers

Plan Managed or Self Managed are better options, as Agency Managed restricts provider choice.

When families ask “which NDIS management type is best?” the real answer is: the one that matches your confidence and lifestyle.

Can You Change Plan Management Later?

Yes.

You can change your NDIS funding management options:

• At your scheduled plan review
• Through a plan variation request
• By speaking with your Local Area Coordinator (LAC)

Many participants move from Agency Managed to Plan Managed once they realise the flexibility benefits.

You are not locked in permanently.

Common Mistakes Participants Make

Understanding NDIS self managed vs agency managed avoids common errors.

Choosing Agency Managed Unintentionally

Some participants tick boxes during planning meetings without understanding restrictions.

Later they discover they cannot hire preferred providers.

Thinking Plan Management Costs Money

Plan management fees are funded separately by the NDIS.

They do not reduce your Core budget.

Mixing Management Types Incorrectly

You can mix management types across categories but you must understand how they interact.

For example:

• Core = Plan Managed
• Capacity Building = Agency Managed
• Capital = Self Managed

Understanding this prevents invoice confusion.

How Providers Work With Different Management Types

Providers invoice differently depending on your management type.

Self Managed

• Provider invoices you
• You pay and claim reimbursement

Plan Managed

• Provider invoices your plan manager
• Plan manager pays provider

Agency Managed

• Provider claims directly from NDIA

Before starting services, it’s important to confirm your management type.

Our support team helps families understand how services fit their plan before starting supports.

Clear communication prevents payment delays and misunderstandings.

Frequently Asked Questions

Final Thoughts

Understanding NDIS plan managed vs self managed vs agency managed is not just about paperwork.

It directly affects:

• Who you can hire
• How flexible your supports are
• How much admin you handle
• How quickly payments occur

If you value flexibility but dislike paperwork, plan management is often the most balanced choice.

If you want total control and are confident with admin, self management may suit you.

Agency management could be the right choice if you want things kept simple and are prepared to take on minimal responsibility although you will have to accept that the provider choice is limited.

Think about how comfortable you are, how much time you have, and what your long, term goals are before making a decision.
The right management option supports independence not stress.