NDIS budget changes are on the way, and they are aimed at making plans easier to use. These changes should give participants more flexibility, clarity, and confidence when managing your funding. In this blog, you will find out more about what is changing, what it means for you, and how to get the most out of your plan.
From Line-by-Line Funding to Needs-Based Budgets
In the past, NDIS plans divided funding into categories such as core supports, capital purchases, and capacity building. Each category had set amounts that participants needed to stick to. This approach often limited the ability to adjust spending when needs shifted.
The new needs based overall budget model gives participants one total budget. You can now decide how to use that budget more flexibly, as long as it supports the goals in your plan.
Most NDIS plans will now last up to five years, offering longer term stability. For children under nine, shorter plans remain available to keep pace with development.
Funding Periods: A New Way to Manage Your Plan
Another key change is how funding is provided. Instead of receiving your entire plan budget upfront, the NDIS now releases funding every three months through funding periods.
This system aims to make it easier to track spending, reduces the risk of running out of funds too early, and should allow for more regular adjustments. The total funding in your plan stays the same, but it is distributed differently.
Most new and renewed plans from May 2025 will use this funding period system.
What Does “Reasonable and Necessary” Still Mean?
The NDIS continues to fund only supports that are reasonable and necessary. This means supports must relate directly to your disability, support you to pursue your goals, build independence, and provide value for money. They also must not be better funded by other systems such as health or education.
Keep this in mind when choosing or requesting supports. While the NDIA may review new requests, the system now gives you more flexibility within your approved budget.
Tips for Planning and Advocacy
Planning meetings and draft budgets can feel overwhelming, but being prepared helps. Use these tips to feel more confident:
• Ask your planner or Support Coordinator to explain how your needs are reflected in the budget
• Bring updated reports and clear goal statements to support your requests
• Review your draft budget carefully and make sure essential supports are included for each three month period
• Request a plan variation if your circumstances change, as adjustments are possible
• Remember that you have the right to choose how your plan is managed unless a specific risk prevents it
Your Support Coordination team can also guide you through these changes. They can explain funding releases, help you track your budget, and prepare for important meetings.
Where to Learn More
Stay informed and up to date by:
• Visiting the NDIS Participant Booklets page for guides and budgeting tools
• Reading the NDIA’s Budget Flexibility FAQs online
• Talking with your Support Coordination team about your current plan and funding
Your NDIS plan is designed around your needs and your voice matters. These budget changes aim to give you greater choice and control over your supports. If you have any questions or want to discuss your budget, reach out to your Support Coordinator. Together, you can make sure your plan works for you.