Tiers of host guidance for managing flexible funding

Hosted flexible funding and hosts

Hosted flexible funding is when a disabled person manages their own disability support funding with guidance from a host – for example, an Individualised Funding Host or a Flexible Disability Support provider.

Hosted flexible funding covers:

• Individualised Funding (IF Personal Care, IF Household Management, IF Respite)
• Enhanced Individualised Funding
• Hosted Enabling Good Lives Personal Budgets.

What tiers are

Everyone with hosted flexible funding gets some sort of guidance from their host, to help manage their funding confidently and responsibly, and in line with their funding plan. (This plan might be either an Individual Service Plan, Enabling Good Lives Funding Plan or My DSS Funding Plan.)

Some people need only light-touch contact. Others need more regular guidance and support with planning, budgeting, claims, record keeping, prior approvals, or employer responsibilities.

A tier describes the level of guidance, coaching and monitoring a host provides. 

There are four tiers. A higher tier means more contact, more guidance, and closer monitoring from the host. It does not change the amount of funding a disabled person gets.

How a tier is decided

A disabled person’s tier is based on their total flexible funding, their experience and confidence managing funding responsibilities, and how they engage with their host.

The tier is assigned by the NASC or EGL site as part of assessment, reassessment or review. Hosts do not assign the tier, but they do provide feedback to inform tier decisions.

Tiers are determined by considering three things.

Factor 1: Experience managing hosted funding

This looks at how confident and capable the disabled person or their agent is in managing hosted funding responsibilities.

That includes things like understanding the funding plan, managing a budget, making claims, keeping receipts and records, and managing employment responsibilities if they employ support workers.

People who are relatively new to hosted funding, or who need more coaching and oversight, will usually need a higher level of host support.

Factor 2: Total flexible funding allocation

This looks at the overall amount of hosted flexible funding the person manages.

In general, a larger allocation may need more oversight and support.

Factor 3: Engagement with the host

This looks at how the disabled person or their agent engages with the host.

For example:

• They respond when information is requested.
• They seek prior approval when required.
• They engage in a timely and appropriate way.

When a tier can be adjusted

A tier may go up or down. For example:

• The disabled person becomes more confident managing hosted funding. 
• The disabled person needs or asks for more support than before.
• The disabled person’s funding changes.
• There are concerns about budgeting, record keeping or engagement.
• There are safeguarding or financial management concerns.

Responsibilities of hosts and disabled people in each tier

What hosts are responsible for across all tiers:

• Helping people understand and manage their funding arrangements and responsibilities, providing the level of guidance linked to the disabled person’s tier.
• Monitoring spending against the disabled person’s plan, budget and purpose of the funding.
• Checking purchases and records as required.
• Giving feedback to NASCs or EGL sites before review points.
• Encouraging the disabled person to contact their NASC or EGL site if their disability needs change.
• Advising the NASC or EGL site about safeguarding or financial management concerns.

Hosts are also expected to support the disabled person’s will and preference, provide meaningful information, and help the person explore options that align with ordinary life outcomes and the purposes in their funding plan.

Tier 1 – Very low support

Tier 1 may be for people or agents who are confident and experienced in managing hosted funding, or who have a small amount of flexible funding. They rarely need support or guidance from the host. 

What the disabled person must do:

• Use funding in ways that align with the funding plan and disability support needs
• Self-check that claims are in line with the plan.
• Stay within budget across the funding period.
• Keep and provide good records, including receipts, invoices and employment records where relevant.
• Seek prior approval for overseas travel, equipment, complementary therapies, buying the same item again before it would normally need replacing, one-off purchases of items over $1,500.

• Check whether other government services should be explored first before using flexible funding for similar supports.
• Cannot use flexible funding for drugs, alcohol, tobacco, gambling and illegal activities.

What the host must do:

• Process claims.
• Help the disabled person or their agent to self-check their claims until they are familiar with the process.
• Check in at least annually, usually before the person’s review.
• Discuss how funding has been used, whether it aligns with the plan, and whether the current level of support is still right.
• Be available if the disabled person asks for help at any time.

Tier 2 – Low support

Tier 2 may be for people or agents who are managing most things well but need some guidance from time to time.

What the disabled person or agent must do:

• Use funding in line with the funding plan and disability support needs.
• Stay within budget.
• Keep and provide good records, including receipts, invoices and employment records where relevant.
• Engage with the host at least every six months.
• Seek prior approval for overseas travel, equipment, complementary therapies, buying the same item again before it would normally need replacing, one-off purchases of items over $1,500.
• Check whether other government services should be explored first before using flexible funding for similar supports.
• Cannot use flexible funding for drugs, alcohol, tobacco, gambling and illegal activities.

What the host must do:

• Process claims and check they align with the plan.
• Check in at least every six months.
• Review spending, planning and alignment with the purpose of funding.
• Provide extra guidance or support when needed.

Tier 3 – Medium support

Tier 3 is for people or agents who need regular support and guidance from the host. This may include people who are new to hosted funding, or who are still building confidence and skill.

What the disabled person or agent must do:

• Use funding in line with the funding plan and disability support needs.
• Stay within budget.
• Keep and provide good records, including receipts, invoices and employment records where relevant.
• Engage with the host at least every three months.
• Seek prior approval for overseas travel, equipment, complementary therapies, buying the same item again before it would normally need replacing, one-off purchases of items over $1,500.
• Work with the host on any guidance needed to manage funding, claims or employer obligations.
• Cannot use flexible funding for drugs, alcohol, tobacco, gambling and illegal activities.

What the host must do:

• Process claims and check they align with the plan.
• Check in at least every three months.
• Provide ongoing guidance and coaching.
• Support the disabled person or agent with budgeting, record keeping and employer responsibilities if relevant.

Tier 4 – High support

Tier 4 is for people or agents who need frequent guidance and active coaching from the host.

What the disabled person or agent must do:

• Have a discussion with the host before making any new purchases.
• Use funding in line with the funding plan and disability support needs.
• Agree with the host on any variation to supports outlined in the funding plan.
• Stay within budget.
• Keep and provide records, invoices and receipts for all purchases.
• Engage with the host at least monthly.
• Seek prior approval for overseas travel, equipment, complementary therapies, buying the same item again before it would normally need replacing, one-off purchases of items over $500.
• Cannot use flexible funding for drugs, alcohol, tobacco, gambling and illegal activities.

What the host must do:

• Check planned use of funding before new purchases are made.
• Process claims and ensure they align with the funding plan.
• Check in at least monthly.
• Proactively provide coaching, budgeting support and help with employer responsibilities.
• Actively monitor spending and record keeping.
• Work closely with the disabled person or agent to plan ahead and reduce risks. 

Changes over time

Over time, factors such as pre-approval limits may change. Hosts will inform people about any changes and what this means for them.

More information

The information on this page is collated from the following operational policies and procedures.

• MSD DSS Purchasing Operational Policy
• MSD DSS Management of Hosted Flexible Funding Arrangements Operational Policy

To read these policies go to: DSS Operational Policy.

For general information on managing flexible funding from 1 April: Flexible funding

Frequently asked questions: Flexible funding questions and answers

Printable and alt format information sheets for people with tiered host guidance