Funding periods are one of the most significant recent changes to how the NDIS operates. It’s no surprise there’s confusion among providers and participants about how they work and what they mean in practice.
Funding periods change how budgets are released across the life of an NDIS Plan. Instead of receiving access to the full plan budget upfront, participants receive smaller portions in stages.
At Leap in! we’re receiving a growing number of enquiries from providers about funding periods and how to manage service delivery under the new approach. Here’s what we know so far.
Quick recap: What are funding periods?
Funding periods are a new way the NDIS releases plan budgets over time. Rather than the full budget being available from the start, it’s released in instalments aligned to set time periods.
- Funding periods usually last for 90 days (or one quarter)
- A portion of funding is released at the start of each period
- When one period ends, the next portion becomes available
- Participants can only spend money released in the current funding period or previous funding periods
- Unspent funds from previous periods are rolled over into the next funding period (within the same plan).
From 19 May 2025, all new and reassessed NDIS Plans include funding periods.
What we’re seeing in plans with funding periods.
As more plans with funding periods are issued, we’re noticing some patterns, although not all are applied consistently at this stage.
- Some plans still have a single funding period for all categories
- Others split funding periods by support category or budget type.
More variation by support type.
We’re also seeing that supports funded within each period can vary depending on the category.
- Support coordination: Often front-loaded to reflect set-up and planning needs. For example, $1,000 each for the first five periods and $200 each for the later periods
- Capital supports (eg. Assistive Technology): Often fully allocated in the first funding period
- Capacity Building therapy supports: Some plans now specify supports by session type and number, e.g. five OT sessions and six physio sessions
- Home and Living supports: Typically have monthly funding periods, with funds released 12 times a year.
Why funding periods matter for providers.
Funding periods directly impact when services can be delivered and how claims are processed. Claims are allocated based on the date of service delivery, not the invoice submission date. If supports are delivered outside of an active funding period, claims may be rejected, leading to delays or missed payments.
Funding periods impact:
- Service continuity and scheduling
- The timing and frequency of support delivery
- Record-keeping to ensure service dates align with funding availability
- Provider cash flow and billing cycles.
Funding period tips for providers.
- Frequency of supports: The NDIA has indicated that it’s a provider’s responsibility to ensure that the intensity/frequency of supports delivered is in line with the member’s funding periods/plan.
- Timely invoicing: Under the new model, timely invoicing helps reduce the risk of insufficient funds being available when claims are made. While invoices will be paid from the correct funding period, delays in invoicing, especially at the end of a plan, may increase the risk that funding has been fully utilised by the time the claim is processed.
- Client communication: The introduction of funding periods makes regular client communication even more important, particularly around period start and end dates and funding availability. It’s also crucial to understand how the supports you provide fit within their overall support planning.
What do funding periods mean for service agreements?
Service agreements should consider the staged release of funding and clearly outline the planned schedule of supports, with flexibility to adjust based on funding availability.
Ideally, delivery of supports should align with each funding period. If the delivered supports exceed what has been funded in the period, it may not be claimable
Where funding is front-loaded, services may need to be delivered earlier in the plan
Avoid locking in long-term or high-frequency supports without confirming available funds in each period
Include a clause in your agreements that allows for review and adjustment if the participant’s plan or funding availability changes.
Helping participants stay informed.
For Leap in! plan managed Members, the Leap in! app has been updated to reflect funding periods. My Budgets now shows:
- Available funding
- Funding still to be released
- The date of the next funding period release.
This helps Members (and their providers) better understand their budgets and plan service delivery accordingly.
Leap in! is continuing to monitor how funding periods are being applied and how they evolve. We’ll keep you informed as more information becomes available.
