OOHC and the NDIS: How DCJ and NDIA Funding Intersect

For caseworkers, carers, and coordinators trying to work out how OOHC and the NDIS connect for a young person in care, this guide explains where DCJ ends, where the NDIA begins, and how to prevent the young person falling through the gap. Out of home care and the NDIS run on parallel tracks that occasionally cross, and the crossing point is where most of the friction and most of the missed supports happen.

This is written for professionals in the NSW system: caseworkers at DCJ or a Non Government Organisation (NGO), foster carers, kinship carers, residential care staff, support coordinators, and NDIS providers. The same principles apply in other states with different agency names.

How does OOHC and the NDIS interact for young people in care?

When a young person is in out of home care and has a disability that meets NDIS access criteria, both systems have legal responsibilities. DCJ or the funded NGO holds care responsibility. The NDIA funds reasonable and necessary disability supports. Where these overlap, the two systems are expected to coordinate.

The NDIS Act and the Applied Principles and Tables of Support (APTOS) set out who is responsible for what. In broad terms:

• DCJ funds: placement costs, general parenting and care, casework, contact with family, education support that any child in care would receive, and general child protection needs.
• The NDIA funds: disability specific supports the young person needs because of their impairment. This includes therapy, capacity building, mentoring, behaviour support, assistive technology, and Core supports beyond what a typical carer would provide.

The friction point is usually where a support could reasonably be called either “parenting a young person” or “disability support”. Both agencies sometimes point at each other. Knowing the rules and being able to cite them is what unblocks these conversations.

Who does what: DCJ role, carer role, NDIA role?

DCJ or the funded NGO is the legal parental authority for a young person on a care order. This means they consent to major decisions, hold the case plan, and fund the placement (foster care, kinship care, residential care, or supported independent living for older young people). DCJ caseworkers coordinate the care team and make decisions about contact, education, and health.

The carer provides day to day care, meets everyday needs, and supports the young person’s participation in life. Carers are not required to fund NDIS supports out of pocket. They also are not expected to be full time support workers for a young person with high needs.

The NDIA funds the young person’s NDIS plan. For a young person in care, the plan should reflect what would be reasonable and necessary for any young person with the same disability, adjusted for their care setting. The plan nominee is usually the caseworker or a designated OOHC representative, not the carer.

Support coordinators funded through the NDIS plan work alongside DCJ caseworkers. This is a two coordinator model in effect. It works when both parties talk regularly. It fails when they do not.

How does funding overlap work in practice?

Real world overlap happens most often in these areas:

Respite and short term accommodation. DCJ funds respite for the carer as part of the placement package. The NDIS funds short term accommodation (STA) if the young person’s disability specifically requires a different setting or level of support during that time. If the young person needs disability specific respite, NDIS pays. If it is generic carer respite, DCJ pays.

Behaviour support and therapy. Behaviour support plans and specialist behaviour intervention are delivered under registration group 0110 Specialist Positive Behaviour Support and funded by the NDIA from the Behaviour Support budget (Improved Relationships on older plans). Community based mentoring, life skills capacity building, and innovative community participation sit under 0125, 0117, and 0116 respectively. DCJ funds general counselling that any child in care would access. The line between these is not always clean, so documentation matters. See our Registrations page for how SCA delivers PBS.

Support workers in the placement. If a young person needs one to one support beyond what the carer can reasonably provide, this is a common NDIS Core Supports use. The distinction is whether the need arises from the disability or from general parenting. A young person with autism who needs a support worker for community access is an NDIS support. A young person who just needs a lift to soccer is not.

Transition to independence. For young people aged 15 to 20 preparing to leave care, both systems have programs. DCJ funds leaving care planning and post care support. The NDIS funds mentoring and Independent Living Skills capacity building.

What are common OOHC and NDIS scenarios?

Scenario 1: New placement, disability not yet diagnosed. DCJ funds the placement and general supports. The caseworker refers the young person for a disability assessment. If the young person is accepted onto the NDIS, the plan is developed with DCJ’s involvement.

Scenario 2: Established placement, existing NDIS plan. The carer, caseworker, and NDIS provider work together. The plan nominee (usually the caseworker) attends NDIS reviews. Providers report to both DCJ and the plan manager or NDIA.

Scenario 3: Placement breakdown. When a placement ends, NDIS supports should follow the young person to their new setting. Continuity of supports matters. Support coordinators can help maintain provider relationships across placements.

Scenario 4: Leaving care at 18. The young person becomes their own legal decision maker. DCJ post care support continues in some form until age 21 or 25 depending on the state and the program. The NDIS plan continues without interruption, but the plan nominee usually changes from the caseworker to the young person, a family member, or an advocate.

What are common mistakes professionals make?

The most common mistake is assuming the NDIA will fund something that is actually DCJ’s responsibility, or vice versa. This leads to funding requests being rejected and the young person going without.

A second mistake is not documenting the disability related component of a support. If a young person needs support for a specific activity and the reason is disability related, the notes and reports need to say that clearly. Vague language creates funding gaps.

A third mistake is running two uncoordinated support teams. DCJ has its own case plan meetings. The NDIS has its own reviews. If these do not talk, the young person ends up caught in the middle.

Action steps for caseworkers and providers

For DCJ caseworkers new to an NDIS young person: read the plan, contact the support coordinator in the first two weeks, attend the next NDIS review, and share the case plan with the coordinator where appropriate.

For NDIS providers new to a young person in care: request a copy of the case plan, understand the placement type and who the carer is, agree communication rhythms with the caseworker, and never make decisions that intersect with legal parental authority without DCJ sign off.

For carers: keep both systems informed. The carer is often the person who knows the young person best and holds the daily picture that both agencies need.

Frequently asked questions

Who is the plan nominee for a young person in OOHC? Usually the DCJ caseworker or a designated OOHC representative, not the carer. This can vary by state and by care order type.

Can foster carers be paid as NDIS support workers for the same young person? Generally no. There are strict conflict of interest rules and it is uncommon for a carer to be paid as an NDIS support worker for the same young person. Some kinship arrangements have exceptions.

Does the young person’s NDIS plan follow them to a new placement? Yes. The plan is tied to the young person, not the placement. Provider changes may be needed but the plan continues.

Who attends NDIS reviews for a young person in care? The plan nominee (usually the caseworker), the young person where appropriate, the carer where useful, and any provider or support coordinator who can add evidence.

Are unregistered providers appropriate for young people in OOHC? Usually not. For young people in care, especially those with complex needs, a registered provider is strongly preferred because of the oversight, quality standards, and reporting obligations.

If you are a caseworker, carer, or coordinator working with a young person aged 12 to 20 in OOHC, Supporting Communities Australia is a registered NDIS provider who understands the two system dynamic. Make a referral or call us on 0480 800 521. We work across Western and South West Sydney and coordinate closely with DCJ and NGO caseworkers.