From 19 May, the NDIA introduced changes to the way NDIS plans are funded.
Previously, most NDIS participants had access to all of their funding at the beginning of their plan, and were expected to manage it over the course of the plan period.
Now, different funding periods will be introduced to new and reassessed plans.
What are funding periods?
A funding period refers to the time when a portion of your NDIS plan funding is made available.
It can apply to the entire plan budget, or just certain components of your funding.
Funding components
Your plan funding is divided into components (these were formally known as budget categories), which group together similar types of supports.
The 3 main components are:
- Core - for everyday supports and activities
- Capacity building - to help build your skills and independence
- Capital - for one-off purchases like assistive technology or home modifications.
Some NDIS plans on PACE provide recurring supports - these are supports the NDIS pays to you on a regular basis, meaning you don't need to make a claim. Currently, the only recurring category is 'transport'.
Each component may have its own funding periods, meaning that funds could be released at different times depending on the type of support.
Learn more about NDIS funding components.
How do funding periods work?
Instead of receiving the full amount of your funding upfront, your funding will be released in parts at the beginning of each funding period.
When one funding period ends, the next portion will become available. Any unspent funds from previous periods will carry over into the next, as long as it's within the same plan.
Providers can still claim for services delivered in earlier funding periods, as long as the invoice dates fall within the overall plan timeframe.
It's important to note that funding periods do not change the total amount of funding that is provided in your plan. The change only impacts when funds become available.
What will my funding periods be?
The length of your funding periods and the amount of funding made available will be decided by the NDIA. This decision will be in line with NDIS laws, and will take into account your individual needs and circumstances.
In most cases, funding periods will be set at 3 months.
Who is impacted by this change?
The changes to funding periods will impact all NDIS participants who receive a new or reassessed plan from 19 May.
If you don't need a new plan, there are no changes right now.
To learn more about NDIS funding periods, visit the NDIS website.
