Understanding NDIS Funding Periods & How to Navigate the Changes

From May 19, 2025, NDIS plans will include funding periods rather than providing the full budget upfront. This means participants will receive their funding in smaller, scheduled amounts throughout their plan. While this aims to improve budgeting and prevent overspending, it also introduces new challenges for participants, providers, and support coordinators.

Tip's and Tricks for NDIS Providers - Funding Periods

What Are Funding Periods?

• Funding periods control when and how much of a participant’s budget is accessible over the course of their plan.

• Instead of receiving the full amount upfront, participants may only access a portion of their total funding at a time (e.g., three-month allocations).

• This change is designed to help participants manage their budgets more effectively and prevent rapid depletion of funds.

Useful Terminology

• Funding Amounts – The total dollar value of a participant’s NDIS plan.

• Funding Components – Categories within a plan, such as Core Supports, Capacity Building, and Capital.

• Funding Periods – The new system controlling when and how much funding can be accessed at a time.
  

From our Specialist Support Coordinators What Participants & Providers Need to Know

Tracking Funding Periods

• Support Coordinators can support with understanding how funding will be distributed in line with the funding periods in the plan

• The participant must provide consent for the funding period timelines to be shared with team members

• It is important that funding is not overutilized more than what is funded during each funding period block

• It is the responsibility of each service provider to track how funding allocated and utilised to ensure smooth service delivery, and reduce the risk of overutilization

• Participants can request for funding periods to be more flexible; however, this can only be requested by the participant and must be considered under exceptional circumstances.

• If there is unutilised funding, this will rollover into the next funding period

Navigating Potential Challenges

• Participants receiving funding periods for the first time may experience challenges. It is important that the funding is used in line with how NDIS built the plan

• While everyone is adjusting to these changes, clear communication and expectations regarding service delivery are essential.

• If there is a change in support needs leading to funding being exhausted before the next period begins, you must submit a change in situation application. This request should seek a plan variation for crisis or emergency funding. However, it is important to note that bringing funding forward does not increase the total amount available within the plan

Important Considerations for Providers

• Service delivery must be in line with what has been funded at each funding period

• Facilitating a meeting with the participant at the beginning of each funding period to discuss how the funding will be most appropriate utilised in line with what is available in each funding period, whilst promoting person centered planning

• Invoice adjustments may be required to align with funding periods.

• Participants may be liable for services that have been delivered outside their funding periods, even if they have remaining funds in their plan.

• Keeping up to date on the NDIS website pertaining to Frequently Asked Questions (FAQ) and upcoming events

Preparing for Plan Reviews & Budgeting Support:

• It is important to consider whether flexibility is required in the funding periods (i.e. 12 month funding periods) based on support needs, and if so, why is this required

• Consider whether ‘front-loading’ is required to ensure that there are adequate supports are factored into the first funding period to support with avoiding gaps in support (i.e. considering Public Holidays, school holidays etc.)

Further Reading & Training:

• NDIS Official Explanation: Changes to NDIS funding periods | NDIS

Additional Resources:

• Frequently Asked Questions: Frequently asked questions about legislation | NDIS

• Section 33: NDIS Plan Funding Periods Section 33: NDIS Plan Funding Periods | Disability Intermediaries Australia

• Funding Periods Overview: Funding Periods Are Here: A Major Change for NDIS Plans

Download the resource below for tips & tricks around NDIS funding periods:

Understanding NDIS Funding Periods.pdf

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