From 19 May 2025, the NDIS (National Disability Insurance Scheme) is introducing new rules around how funding is made available in participant plans. These changes are designed to help participants better manage their budgets and avoid running out of funds before their plan ends.
This blog breaks down the key updates so that NDIS participants, carers, and providers can understand what’s changing, why, and what actions they may need to take.
Why Are These Changes Happening?
Until now, most NDIS participants have received all of their plan funding upfront, usually to cover 12 months. While this gave maximum flexibility, it also meant some participants:
- Spent too much too early, which left them without enough funds later in the year.
- Struggled to manage their money, making it hard to plan for the whole 12 months.
- They were more vulnerable to being taken advantage of, either by others or through mistakes, leading to lost or misused funds.
What Are Funding Periods?
A funding period is a time during your plan when a portion of your funding becomes available. It does not reduce the total funding in your plan — it simply spreads out access to funding over time.
Example:
If you have $24,000 for Core Supports, under the new system, this might be split into four $6,000 quarterly payments.
If you don’t use it all in one period, the unspent amount rolls into the next.
What’s New from 19 May 2025?
- Funding will now be released in smaller chunks, often every three months.
- Home & Living supports will typically be released monthly.
- Assistive technology and home modifications may still be paid in full up front, depending on the item.
- These changes apply only to new or reassessed plans created on or after 19 May 2025.
- This is a gradual rollout — you won’t see any change until your plan is reviewed or reassessed.
How Does It Work in Practice?
- If you don’t use all the funds in a period, they roll over into the next.
- But at the end of the plan, any leftover funds are lost and don’t carry over to your next plan.
Sovereign Lives Victoria is an NDIS provider serving Altona region.
We offer NDIS care and support services to people eligible for NDIS funding in Altona.
