Are you an NDIS participant, or do you support someone who is? If so, listen up! There’s a significant change coming to how NDIS funding is released, and understanding it now will save you a lot of headaches later. Forget everything you thought you knew about getting your annual budget in one go – the game is changing.
From May 19, 2025, if you have a new NDIS plan or your existing plan is reassessed, you’ll be entering the era of “funding periods.” What does this mean in plain English? Instead of your full 12-month budget landing in one go, your funding will now be released in smaller, more regular instalments throughout your plan.
Think of it like getting your salary paid fortnightly instead of once a year – same total amount, but spread out.
The NDIA says this new approach aims to help participants manage their budgets more effectively, reduce the risk of running out of funds too early, and ensure consistent access to supports throughout their entire plan period. It’s designed to provide greater stability and predictability.
This is the crucial part! The release schedule will depend on the type of support:
Most Supports (Core & Capacity Building): Quarterly
For the majority of your support categories (think daily activities, skill development, therapy), your funding will be released every three months. This means you’ll have access to a portion of your annual budget for each quarter of your plan.
High-Cost Supports (Home & Living): Monthly
If your plan includes significant Home and Living supports, such as Supported Independent Living (SIL), this funding is generally released on a monthly basis. This ensures consistent cash flow for these critical, ongoing needs.
Big Purchases (Assistive Technology & Home Mods): Still Upfront
Don’t panic about those essential, large, one-off items! For things like significant Assistive Technology (a new wheelchair, communication device) or major Home Modifications, the funding is typically still released upfront as a single lump sum. Good news for those big-ticket items.
This is where it gets interesting, and it’s vital to grasp these points:
Rollover Within Your Plan is Still a Thing. If you don’t spend all the funds allocated for one period (e.g., a quarter), the unspent amount will roll over to the next period within your current plan. This gives you flexibility if your needs fluctuate slightly.
No Rollover to New Plans. Here’s a key difference: any funds left unspent at the very end of your total plan duration (e.g., at the 12-month mark) will not roll over into your next new plan. Use it or lose it within your plan’s lifecycle!
No “Borrowing” from Future Periods. You cannot access funds from a future period early. If your claims exceed the available funds in your current period, they will unfortunately be rejected. This makes careful planning even more essential.
Your Total Funding Remains the Same. Crucially, these changes do not affect the total amount of funding approved in your plan. It merely changes when and how you can access it.
If your current NDIS plan was approved before May 19, 2025, these changes will not affect you until your next plan reassessment. You’ll continue with your current funding release schedule until then.
It’s also worth noting that new NDIS Pricing Arrangements and Price Limits for 2025-26 will take effect on November 24, 2025. These updates include:
The removal of temporary COVID-19 related pricing rules.
Adjustments to regional, remote, and very remote travel cost classifications.
Changes to the price limits for Art Therapists and Music Therapists.
These changes require a shift in how you think about and manage your NDIS budget. Proactive planning, careful tracking of your spending, and a clear understanding of your funding periods will be more important than ever.
Need help navigating these new NDIS funding periods? Have questions about how this impacts your specific plan or supports? Don’t hesitate to reach out.
Contact us at Support Agency today for expert guidance and to ensure you’re making the most of your NDIS plan under the new rules. We’re here to help.