New Changes to NDIS Funding Periods: What You Need to Know

From 19 May 2025, the National Disability Insurance Scheme (NDIS) begin rolling out new funding periods for all new and reassessed participant plans. This change means that instead of receiving your full plan budget upfront, your funding will be released in smaller, regular instalments, usually every three months. The aim is to make it easier for you to manage your budget, reduce the risk of running out of funds early, and help prevent overspending or financial exploitation. This article explains what funding periods are, how they work, what happens to leftover funds, how claims will be processed, and what steps you can take now to prepare. If you are a person living with disability or a guardian supporting a loved one, this guide will help you navigate the new system and make the most of your NDIS plan.

Understanding NDIS Funding Periods

What Are Funding Periods?

A funding period is a set length of time, typically three months, during which a portion of your NDIS funding becomes available for you to use. Rather than having access to your entire annual budget at the start of your plan, your funding will be distributed in these smaller periods. This approach is designed to give you more flexibility and support you in managing your budget over the length of your plan.

For example, if your plan budget is $12,000 for the year and your funding period is three months, you will receive $3,000 at the start of each funding period. If you do not spend all of your funds in one period, the remaining amount will roll over to the next period within the same plan.

Why Are Funding Periods Being Introduced?

Feedback from participants and families highlighted that receiving all funding upfront made it difficult to budget, with some people running out of funds before the end of their plan. The new funding periods aim to support better budgeting, reduce the risk of overspending, and help prevent risks of harm, fraud, or financial exploitation.

The National Disability Insurance Agency (NDIA) will consider your preferences, past spending, and any risks when setting the length and amount of your funding periods. The goal is to make sure your supports are available when you need them and that your funding lasts the full duration of your plan.

How Are Funding Periods Set?

Funding periods are determined as part of your planning conversation with the NDIA. While most plans will have three-month funding periods, some supports, like Home & Living, may be funded monthly, and capital supports (like assistive technology) may be released in full at the start of your plan.

The NDIA will talk with you about your needs, preferences, and any risks of overspending or harm. Your funding periods will be clearly outlined in your NDIS plan, and you will be able to see them in the participant portal and the my NDIS app.

When Do the Changes Start?

Commencement Date and Rollout

The change to funding periods begins on 19 May 2025. It will be introduced gradually and will only apply to new plans or plans that are reassessed after this date. If you have an existing plan that is simply extended (rolled over) and not reassessed, your funding will continue to be available as it is now, until you have a new or reviewed plan.

This means you will not see any changes until you go through a plan reassessment or receive a new plan. The NDIA will discuss the new funding periods with you as part of your planning meeting.

How Will You Know If Your Plan Has Funding Periods?

Your NDIS plan document will state if funding periods apply. You can also check your funding periods in the participant portal or the my NDIS app. If you are unsure, ask your NDIA planner, plan manager, or support coordinator to help you understand your plan’s funding periods.

What Happens to Leftover Funds?

Rollover Within the Same Plan

If you do not spend all of your allocated funds during a funding period, the unspent amount will roll over to the next funding period within the same plan. For example, if you have $3,000 for a three-month period and spend only $2,000, the remaining $1,000 will be added to your next funding period.

This rollover only applies within the same plan. It gives you flexibility if you have unexpected changes in your needs or if you are unable to use all your supports in a given period. You can continue to use any rolled-over funds as long as your plan is active.

No Rollover to a New Plan

Unused funds at the end of your plan period will not roll over into your next plan. When your plan ends, any unspent funds are returned to the NDIA and are not added to your new plan’s budget. This is similar to the current system, where you need to use your funding within the plan period. During your plan reassessment, you can discuss why funds were not spent and whether your needs have changed.

What If Your Plan Is Extended?

If your plan is extended automatically (for example, if your new plan is not ready when your current plan ends), your funding will continue as before until your new plan is approved. Once you receive a new or reassessed plan, the new funding periods will apply.

How Do Claims Work Now?

Claiming Supports Within Funding Periods

With funding periods, you can only claim for supports using the funds available in the current funding period, plus any rolled-over funds from previous periods within the same plan. Claims must match the funding period. For example, if a support or invoice spans two funding periods, you may need to split the claim or provide separate invoices for each period.

If you try to claim more than the available funds in your current period (even if you have unspent funds from previous periods), your claim may be rejected. You cannot “borrow” from future periods unless you request a plan variation.

Moving Money Between Periods

You cannot move funds from future periods into the current period on your own. If you need more funding in a particular period due to a change in your circumstances, you must request a plan variation or reassessment from the NDIA. The NDIA will review your needs and may adjust your funding periods if appropriate.

Who Can See Your Funding Periods?

You, your plan manager, and your approved support coordinator can see your funding periods in the participant portal and the my NDIS app. Other providers cannot see your funding periods unless you give them permission.

What Should You Do Now?

Monitor Your Funding

Start by checking your NDIS plan, the participant portal, or the my NDIS app to see if funding periods apply to your plan. If you are unsure, ask your plan manager, support coordinator, or NDIA planner for help.

Keep track of your spending in each funding period. The portal and app will show you how much funding you have, how much you have spent, and when your next funding period starts. This will help you plan your supports and avoid running out of funds before the end of your plan.

Plan Your Supports

Work with your providers and support coordinator to map out your supports across the year. Make sure your service agreements align with your funding periods. If you expect to need more support in a particular period, discuss this with your NDIA planner during your planning meeting.

Request a Plan Variation If Needed

If your situation changes and you need more or different supports, you can request a change to your plan. Do this as early as possible, before your funds run out, to avoid gaps in your supports.

Be Aware of Risks

The new funding periods are designed to help reduce risks of overspending, harm, fraud, or financial exploitation. If you have concerns about managing your budget, talk to your plan manager or support coordinator. They can help you monitor your spending and avoid potential risks.

Stay Informed

Keep an eye on updates from the NDIS Quality and Safeguards Commission and the NDIA. Attend information sessions and webinars if you can. If you need help understanding the changes, reach out to your NDIA contact, plan manager, or support coordinator.

Frequently Asked Questions

What Are Funding Periods?

Funding periods are set lengths of time, usually three months, during which a portion of your NDIS funding is available for you to use. They help you manage your budget and make sure your supports are available when you need them.

When Do Funding Periods Start?

Funding periods start from the date your new or reassessed plan is approved. They are not linked to the calendar month. For example, if your plan starts on 27 March, your funding periods will also start on that date.

What Happens to Leftover Funds?

Unused funds at the end of a funding period roll over to the next period within the same plan. Unused funds at the end of your plan do not roll over to your next plan, they are returned to the NDIA.

How Do Claims Work?

You can only claim supports using the funds available in the current funding period, plus any rolled-over funds from previous periods. Claims must match the funding period. If you need more funds in a period, you must request a plan variation or reassessment.

Can You Move Money Between Periods?

No, you cannot move funds from future periods into the current period. You can only use the amount available in the current period, plus any rolled-over funds from earlier periods.

What Should You Do Now?

Check your plan and the participant portal to see if funding periods apply. Monitor your spending, plan your supports, and request a plan variation if your needs change. Stay informed by following updates from the NDIA and the NDIS Quality and Safeguards Commission.

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The introduction of funding periods is a significant change to how NDIS participants manage their budgets and access supports. By releasing funding in smaller, regular instalments, the NDIA aims to help you manage your budget more effectively, reduce the risk of running out of funds, and protect against overspending and financial exploitation. While the change may require some adjustment, it also offers more structure and support for you to plan your supports across the year.

If you need help navigating these changes, keep an eye on updates from the NDIS Quality and Safeguards Commission and the NDIA. Reach out to your plan manager, support coordinator, or NDIA planner for support. By staying informed and proactive, you can make the most of your NDIS plan and ensure your supports are available when you need them.