BEWARE OF HOW FAR BACK THE NDIS CAN ASK FOR INFORMATION WITH REGARD TO:
Compensation Reduction Amount (CRA) and the NDIS
When you have received a Compensation Payout you can still apply for the NDIS if you meet the access request criteria.
When you do receive access to the NDIS you will be required to notify them of your Compensation Payout, at this time you will be assessed by the NDIS for a CRA. This basically is the component of the Compensation Amount that the NDIS deems as payable towards the expenses the Participant occurs for all Services, Supports, etc due to the Disability/Disabilities the Participant has in a given period, normally 12 months.
An example of how this works is, say the CRA worked out by the NDIS is $50,000. NDIS has also worked out from the participants requirements the amount of Funding required for say 12 months = $280,000.
NDIS Funding Required $280,000
Participants CRA $ -50,000
Amount NDIS Actually funds $230,000
The above example is a very simplistic example.
When working out the CRA the NDIS can or may request the following information:
Whilst this is reasonable and you would expect to have to supply some or all of this information.
Is reasonable the reality or the unreasonable reality.
When you actually look at how item 12 above, can you grasp the scope and how this can actually affect the participant.
My question is “is this a reasonable request, or an unreasonable request”, and how many people are aware of this?
An example say you received a compensation payout and it took you 10 years to win the case. The NDIS can ask you to supply evidence of expenses etc as per item 12 above from the date you sustained the disability/injury.
Ok now let say you accessed the NDIS 10 years after the payout. You actually sustained the Disability/Injury 2 years prior to starting legal procedures. This means you would have to go back 22 years.
“Income tax department does have the power to ask details of old cases up to 10 years, however, this comes under exception where the department has proofs against you and this can be done in the search cases only,”
Generally, you must keep your written evidence for five years from the date you lodge your tax return.
Imagine how you would go about gathering all the costings if requested, up until the date your access to the NDIS was approved.
So Again, My question is “is this a reasonable request, or an unreasonable request”.