Funding periods explained

What you need to know about the latest NDIS changes

You’ve probably noticed how fast things have been changing with the NDIS since last year’s review. Updates have come thick and fast – sometimes it feels like just as you get your head around one change, another one arrives. It’s a lot to keep up with, and it can be overwhelming.

And, a pretty significant change came into effect recently. From 19 May, NDIS funding is now released in smaller instalments called Funding Periods, rather than all at once. This means many participants will manage their plans a little differently day to day.

Here’s what you need to know…

Previously, NDIS participants would generally receive their entire plan budget upfront, available for a full 12 months. Now, that funding will be broken into smaller instalments over the course of the plan. These will vary based on the type of support and will be released quarterly, monthly, or upfront depending on the support category.

According to the NDIA, this approach is designed to make plan management more responsive over time and to ensure funding is used more effectively.

Who’s affected?

These changes apply to:

• All new NDIS plans created after 19 May 2025
• Existing plans when they are reassessed or renewed

If your current plan was approved before 19 May 2025, the theory is that you will continue under the old funding model until your plan is updated.

What are funding periods?

A Funding Period is a timeframe that determines when a portion of your NDIS funding becomes available. Instead of receiving your total plan funds at once, you’ll receive scheduled instalments based on the category of support.

The three main types of funding periods are:

• Quarterly (every 3 months): Most supports fall into this category.
• Monthly: Common for Home and Living supports, such as Supported Independent Living (SIL).
• Upfront: Used for purchases like Assistive Technology or Home Modifications that require full payment at the time of purchase.

You’ll be able to see the number and timing of your funding periods in the NDIS portal, and your Plan Manager or Support Coordinator (if you have one) will also have access to these details.

Is your Plan still flexible?

Yes – some flexibility remains depending on the type of support and how your plan is managed:

• Core Supports remain flexible in how you use them, unless restrictions are stated in your plan.
• Capacity Building Supports are generally flexible (within the specific categories) unless otherwise noted.
• Capital Supports are typically fixed and itemised, just as they have been under the previous system.

Does this apply to children too?

Yes. These changes apply to all participants, including children and those in the Early Childhood approach. The funding period structure will be used across all new plans regardless of age.

When do funding periods start?

Funding begins from the start date of your NDIS plan, not the beginning of the calendar month. For example, if your plan begins on 1 March, that’s the start of your first funding period. If you’re on quarterly funding, the next release will be 1 June.

What if you don’t spend it all?

Unused funds roll over into the next funding period within the same plan. However, leftover funds at the end of the plan won’t carry over into a new plan.

Example: You have $36,000 allocated for therapy, with funding released quarterly in equal amounts of $9,000each.

• Quarter 1: $9,000 allocated. If you only spend $6,000, then $3,000 will roll over.
• Quarter 2: $9,000 + $3,000 rollover = $12,000 available. If you spend $10,000, then $2,000 will roll over.
• Quarter 3: $9,000 + $2,000 rollover = $11,000 available. If you spend $11,000, no rollover.
• Quarter 4: $9,000 allocated. If you spend the full amount, no rollover.

This rollover system allows some flexibility during the plan but remember, leftover funds do not carry over once the plan ends.

Claiming and overspending

You must claim supports within the correct funding period. If a support crosses periods, you may need to submit split claims. If your costs exceed the available amount in a given period, you’ll need to wait for the next funding release. You can’t borrow from future periods.

If your plan no longer suits your needs, talk to your planner about a reassessment – you may be able to adjust the frequency of funding or request changes.

How to prepare

Participants: Speak with your support coordinator or plan manager to understand how your plan will be structured under PACE and how to plan ahead for funding periods.

Note that this information is correct at the time of going to press. For the most recent updates and answers to common questions, visit the NDIS website’s Frequently Asked Questions page.