32KReasonable and necessary budget—working out total funding amounts

#### 32K Reasonable and necessary budget—working out total funding amounts (1) The following amounts specified in the reasonable and necessary budget must be worked out by applying the information in the needs assessment report for the plan, in so far as the report relates to the participant’s need for NDIS supports arising from impairments in relation to which the participant meets the disability requirements or the early intervention requirements, in accordance with the applicable method specified in the National Disability Insurance Scheme rules for the purposes of this subsection: (a) the total funding amount for flexible funding (see paragraph 32E(2)(a)); (b) the total funding amount for a stated support or class of stated supports (see paragraph 32G(2)(a)). > Note: In making National Disability Insurance Scheme rules for the purposes of this subsection, the Minister must have regard to the objects and principles of this Act (see in particular the principles set out in subsections 4(5), (9A) and (11)) and the financial sustainability of the National Disability Insurance Scheme: see subsection 209(3). (3A) The Minister must also be satisfied that those rules adequately take account of the variety of factors that may affect a participant’s need for NDIS supports. > Note: Examples of those factors include environmental factors, and a participant’s need for NDIS supports arising from an impairment in relation to which the participant meets the disability requirements or the early intervention requirements being impacted by another impairment in relation to which the participant does not meet either of those requirements. (4) Without limiting subsection (1), National Disability Insurance Scheme rules made for the purposes of that subsection may relate to how to take into account: (a) lump sum compensation payments that specifically include an amount for the cost of supports; and (b) lump sum compensation payments that do not specifically include an amount for the cost of supports; and (c) periodic compensation payments that the CEO is satisfied include an amount for the cost of supports; and (d) amounts that a participant or prospective participant did not receive by way of a compensation payment because he or she entered into an agreement to give up his or her right to compensation; and (e) supports in respect of personal injury that may be funded or provided under a scheme of insurance, or under a Commonwealth, State or Territory law. (5) Without limiting subsection 33(3A) of the Acts Interpretation Act 1901 or subsection 209(1A) of this Act, National Disability Insurance Scheme rules made for the purposes of subsection (1) of this section may make different provision in relation to: (a) different classes of participants; and (b) for the purposes of paragraph (1)(b) of this section—different classes of stated supports.