Changes are being introduced gradually from this week to support participants to more easily manage their budgets.
Most participants currently have access to all their funding at the start of their plan and need to make it last the full duration of their plan - usually 12 months.
We've heard from participants these 12-month funding periods can make it hard to budget, increasing the risk of overspending or running out of funds.
From 19 May 2025, different funding periods will be introduced to new and reassessed plans.
This change will be rolled out gradually. Participants will not be impacted until they receive a new or reassessed plan following discussion with them to understand their circumstances.
Funding periods will usually be set at three-months on the basis this gives flexibility to participants but also help participants manage budgets
This approach makes sure funds are available at regular intervals and supports consistent use of funding over the length of the plan.
Funding periods don't change the total amount of funding in a participant's plan, only when the funding becomes available.
Funding periods in NDIS plans are not new. Changes to the NDIS Act introduced funding periods in October 2024. All new and reassessed plans since then have included 12-month funding periods.
The NDIA sets the length and amount of funding periods in line with NDIS laws, taking into account a participant's individual needs and circumstances.
This includes things like:
- preferences
- any risks with overspending
- any risks of harm, fraud, or financial exploitation.
A funding period is the time during which part of a participant's funding is available.
This can apply to the total funding amount (whole plan) or specific funding components.
