Funding Periods in the NDIS: What You Need to Know

The National Disability Insurance Scheme (NDIS) has introduced a significant change to how participants access their plan funding. From 19 May 2025, new and reassessed NDIS plans will include funding periods, which means that participants will no longer receive their entire plan budget upfront. Instead, funds will be released in smaller, scheduled instalments over the life of the plan.

What Are Funding Periods?

A funding period is a designated timeframe during which a portion of a participant’s total NDIS funding becomes available for use. Rather than having access to the full budget at once, participants will receive their funds in increments, typically every three months. This approach is designed to help participants better manage their budgets and reduce the risk of overspending or running out of funds too early in their plan period.

How Funding Periods Work

Duration: Most funding periods are set at three months, but some supports have shorter periods. For example, Supported Independent Living (SIL), Plan Management, Specialist Disability Accommodation (SDA), and Assistance with Daily Living funding over $200,000 annually have default one-month funding periods.

Release of Funds: At the start of each funding period, a portion of the total funding amount is released. For example, a 12-month plan with $16,000 allocated for capacity building supports might release $4,000 every three months.

Rollover of Funds: Unspent funds from one funding period roll over into the next period within the same plan. However, funds cannot be transferred backward to previous periods, ensuring that budgets are spent consistently over time.

Claiming Rules: Providers can only claim for services delivered within the current or previous funding period. Claims that exceed the available funds in a period may be rejected, and services spanning multiple periods may require split invoices.

Why Funding Periods Were Introduced

The change to funding periods was introduced following amendments to the NDIS Act in October 2024, giving the NDIA authority to set funding periods under Section 33. The main reasons include:

• Helping participants manage their budgets more effectively by spreading funding over time.
• Reducing risks related to overspending, financial exploitation, or fraud.
• Supporting consistent use of funding throughout the plan duration.

What This Means for Participants and Providers

• Participants will need to plan their supports within the funding periods and monitor their spending carefully to avoid running out of funds prematurely.
• Providers must align their service delivery and invoicing with the funding periods to remain compliant with NDIS rules. This may require adjustments in quoting, service agreements, and billing practices.
• Some participants may negotiate the distribution of funds within their plan during reassessment, especially if they have legitimate needs for front-loaded funding (e.g., for assistive technology or behaviour support plans.

Key Takeaways

• Funding periods do NOT change the total amount of funding in your plan, only when the funds become available.
• Most plans will have three-month funding periods, but some supports have shorter or longer periods depending on their nature.
• Unspent funds roll over to the next funding period but cannot be moved backward.
• Participants and providers should familiarise themselves with the new funding period structure to ensure smooth plan management and service delivery.

For participants receiving new or reassessed plans after 19 May 2025, understanding funding periods is crucial to making the most of your NDIS supports and maintaining financial control throughout your plan.

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This change represents a major shift in NDIS plan management, aiming to improve budget control and support continuity of care. If you have questions about how funding periods affect your specific plan, consider discussing them with your NDIS planner or support coordinator.