Guide
NDIS Funding Explained
A plain-language walk-through of the three NDIS budgets — Core, Capital and Capacity Building — what each one pays for, and how to make them work together.
Guide
NDIS Funding Explained
A plain-language walk-through of the three NDIS budgets — Core, Capital and Capacity Building — what each one pays for, and how to make them work together.
The three NDIS budgets
An NDIS plan is split into three budgets, each with different rules about what they pay for and how flexible the money is.
1. Core Supports — your most flexible budget
Core funds the day-to-day stuff. It’s split into four categories — Assistance with Daily Life, Social and Community Participation, Consumables, and Transport — but most of the money is flexible across these four. That means if you don’t use much in one, you can use more in another.
What Core typically pays for:
- Support workers for personal care, daily living and community access
- Cleaning, gardening, household tasks
- Continence aids, low-cost AT under $1,500
- Transport between activities (some restrictions apply)
- Group programs and centre-based activities
2. Capital — for one-off purchases
Capital funds equipment and modifications. It is NOT flexible — funding is allocated for specific items, often with a quote and NDIA approval before purchase.
What Capital typically pays for:
- Wheelchairs, mobility aids, communication devices
- Home and vehicle modifications
- Specialist Disability Accommodation (SDA) where eligible
- Significant assistive technology over $1,500
3. Capacity Building — for skill-building
Capacity Building funds therapy and supports designed to build your skills and independence. It’s split into nine categories (Improved Daily Living, Improved Relationships, Improved Health and Wellbeing, etc.) and the funding is goal-based, not flexible across categories.
What Capacity Building typically pays for:
- Allied health: OT, physio, speech, psychology
- Support coordination and specialist support coordination
- Employment supports (school leavers, DES top-ups)
- Skill-building with a support worker (cooking, transport, social skills)
- Behaviour support assessments and plans
How they fit together
A typical NDIS plan uses all three. Core pays for the support workers who get you through the week. Capital pays for the wheelchair, the home modifications, and the iPad you use to communicate. Capacity Building pays for the OT who taught you how to cook for yourself and the support coordinator who keeps everything running.
Plan management changes how you spend
Whether your plan is self-managed, plan-managed or NDIA-managed changes which providers you can use — but not what the budgets pay for. NDIA-managed plans can only use registered providers. Self-managed and plan-managed can use both registered and unregistered.
See our Plan Management Guide for more on this.
Stated and quoted supports
Most line items in your plan are flexible within their budget. Two exceptions:
- Stated supports — funding is locked to a specific provider or service. You can’t reallocate.
- Quoted supports — funding is allocated based on a written quote (common for complex supports and Capital purchases).
How to make it stretch
Three things our families consistently find help:
- Use Core flexibility. If you have lots of unspent Community Participation but Daily Living is running low, you can shift the balance.
- Cluster shifts. Two 4-hour shifts cost less in travel time than four 2-hour shifts.
- Plan ahead for plan reviews. Track what you’ve actually spent each quarter. At review time you’ll have evidence for what you need next plan.
Useful links
- NDIS official: Using your plan
- NDIS Glossary
- Plan Management Guide
- Send us a message if you’d like a 20-minute walk-through with our team.