TTP stands for Temporary Transformation Payment. It’s an additional cost that eligible providers can charge, as they transition to working in the NDIS.
TTP was put into place to benefit providers and help them to transition to the NDIS’ new model of funding. Some providers received funding from different schemes before NDIS, and when they transitioned over to NDIS the prices they were able to charge and the funding they were able to receive changed. There was also some more paperwork and regulations that providers needed to adhere to in order to become an NDIS registered provider, and this takes time and money. Some providers were destined to be better off under the NDIS, but some were likely to lose a bit of money. The NDIS recognised that this may impact some providers, and so introduced the TTP to smooth out this transition.
The TTP is a percentage added to the base rate of a service. It usually applies to supports in the following categories:
Each July, the percentage of TTP decreases by 1.5%. Currently in the 2020/2021 financial year it is 6% – in July 2021 it will decrease down to 4.5%. This trend will keep going until the TTP payment no longer exists, which should happen in July 2024. By that time, all providers will have had almost a decade to get used to the NDIS system and transition over.
Let’s see TTP in action: take the line item Assistance with Self-Care Activities – Standard – Weekday Daytime (for someone living in a metropolitan area). The regular maximum price is $55.47 per hour. If the provider charges TTP, then they can charge an extra 6% on top of that – so an extra $3.33 per hour. This means that the maximum price that a provider charging TTP can charge for is $58.80. You’ll know which line items are the TTP ones, as the support item number has a T at the end.
Not all providers are eligible to charge TTP though – to be able to charge TTP services, a provider will need to:
You don’t have to register for TTP, you just have to meet the eligibility criteria in order to start charging TTP rates to participants.