Funding periods are one of the biggest recent changes to how the NDIS works so it’s no surprise they’re a hot topic of conversation right now.
NDIA CEO Rebecca Falkingham has said, “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.”
In this update, we’re sharing insights from our team about how funding periods are working in practice.
If you missed it, check out our previous explainer NDIS funding periods: What you need to know.
Quick recap: What are funding periods?
- Funding periods are a new way the NDIS releases plan budgets over time
- Instead of receiving your full plan funding upfront, you’ll get smaller portions released in stages
- Each portion is released at the start of a funding period
- When one period ends, the next portion becomes available
- Funding periods are now being rolled out for all new and reassessed plans.
What we’re seeing in plans with funding periods.
As more plans with funding periods are issued, we’re noticing some emerging patterns. Some of these differences may become more consistent as the rollout continues.
- Some plans still have a single funding period across all categories
- Others have different funding period lengths for different support types.
More variation by support type.
We’re also seeing variation in how specific support categories are funded within each period.
- Support coordination: Budgets may be front-loaded, with higher amounts in early funding periods. For example, $1,000 each for the first 5 periods and $200 each for the final 3
- Capital supports: Items like Assistive Technology (AT) are often fully allocated in the first funding period
- Capacity Building therapy supports: Some PACE plans are providing more detailed breakdowns such as the number of sessions for each type of therapy. For example, five OT sessions and six physio sessions.
Example of funding periods in action.
Let’s look at how funding periods work using Tom’s plan as an example. Tom has a 12-month plan with flexible Core supports.
- Funding period length: Three months
- Number of funding periods: 4
- Spread: Funding is uneven. He only has funding for the first 2 periods at the start of the plan.
Here’s how Tom’s funding looks at the start of his plan.
Funding period 1: Making a claim.
- Tom’s initial budget: $1,000.
- He makes a claim for service dates 20-23 May for $400
- Remaining balance: $600
Funding period 1: Claim is more than available funds.
- Tom tries to make another claim for services from 24-26 May for $601
- The NDIS rejects the claim as there is only $600 left in this period
- Even though $500 is available in period 2, it can’t be used early
Funding period 2: Unspent funds rolls over.
- The unspent $600 from funding period one rolls over
- Added to the $500 from period 2, Tom now has $1100.
Tom makes a claim in the second funding period for $700.
- The claim is approved
- Remaining balance: $400
Funding period 3: Another claim.
- There are no new funds in this period but $400 rolls over from period 2
- Tom makes a claim for $300 for services in periods 2 and 3
- The claim is approved
- Remaining balance: $100.
Funding period 4: $100 remaining.
- Tom now has only $100 from previous unspent funds
- He can make a claim for up to $100
- He can claim for services within his current plan dates but cannot exceed the total available funds.
This example is just one way a plan with funding periods might look. Every NDIS Plan is different and your funding periods may vary based on your needs and supports.
We’ll continue monitoring how funding periods are applied across different plans and keep you updated.
The Leap in! app.
If you’re a Leap in! plan managed Member you get full access to the Leap in! app, including My Budgets. The app has been updated to reflect the funding period changes, so you have all the information you need to make informed decisions about your plan. You’ll see how much funding you have available, how much funding is still to be released, and the date of your next release.
Not a Leap in! Member? Would you like to discuss if plan management is right for you? Call 1300 05 78 78.
