NDIS ALERT.
NDIS Plan ‘funding periods’ are here.
A major change to the way NDIS Plans are funded has arrived. From 19 May, all new and reassessed NDIS Plans will include funding periods.
This means the funds in your NDIS Plan will no longer be released all at once. Instead, plan funds will be made available in smaller amounts at set times throughout the plan period.
What changed in the NDIS in 2024 and 2025?
The federal government is rolling out NDIS reforms. The first changes began in October 2024 with more continuing throughout 2025. Key updates include a new planning framework, the introduction of funding periods and changes to how eligibility is assessed.
We’ll keep this page up to date as new details are released, so you’ll always have the latest information.
New planning framework.
From May 2025
The NDIS is moving to a new planning process that explains how people can access the scheme, how support needs are assessed and how flexible budgets are created.
Due to changes to the legislation, plans will now fall under the ‘old’ and ‘new’ frameworks during a five-year transition. Some participants continue with the current process for now, while all new and reassessed plans will be new framework plans.
New Framework Plans.
All people on the NDIS will eventually move to a New Framework Plan. These include ‘funding periods’ that define when you can access a portion of your total budget – see more details below:
- Plans specify how stated funding can be used such as on specific support types
- Unspent funds will rollover between funding periods within the same plan
- Additional funding will only be added in specific situations such as a crisis or emergency.
Support needs assessment.
Support needs assessments will be a key part of the new planning framework. They will help determine each person’s support needs and shape their NDIS Budget. More information about support needs assessments is expected to become available soon, with initial rollout expected in late 2025.
Old Framework Plans.
Some participants will remain on Old Framework Plans during the transition.
Key features:
- Maximum 12-month duration
- Total budget amount shown, without individual line items
- Supports may be grouped into categories
- You may be able to request extra funding in exceptional circumstances.
NDIS funding periods.
From May 2025
From 19 May 2025, all new and reassessed NDIS Plans will include funding periods. This means your full plan funding will no longer be released all at once. Instead, funds will be made available in smaller portions at set times throughout the plan period.
What are funding periods?
Funding periods are a new way the NDIS releases plan budgets in stages, rather than all at once. A funding period is a set timeframe, usually three months.
- Each period allows access to a portion of your total plan budget
- You can only spend funds from the current or previous periods
- Different funding periods may be introduced over time
- This applies to new and reassessed plans from 19 May 2025.
How do funding periods work?
Your NDIS Plan will show the total amount of funding for its duration, divided into funding periods. A portion of funds is released at the start of each period.
- When a period ends, the next portion becomes available
- Unspent funds roll over into the next period (within the same plan)
- Providers can claim for past services as long as the invoice dates fall within the plan
- This approach aims to support better budgeting and reduce the risk of overspending.
What are ‘funding components’?
Your plan funding is split into funding components (previously known as budget categories). Each component groups similar types of supports.
The three main components are:
- Core: For everyday activities and supports
- Capacity Building: For building skills and independence
- Capital: For one-off purchases such as assistive technology or home modifications.
Components may have separate funding periods that may be released at different times.
See NDIS Plan ‘funding periods’ are here: What you need to know for more details.
Impairment notices.
1 January 2025
An ‘impairment notice’ is a document that outlines how you meet the NDIS access criteria, either through the disability or early intervention requirements, or both.
From 1 January 2025, all new NDIS participants will receive an impairment notice. This replaces the current access decision letter. Existing participants will receive one when they move to a new plan.
- The notice confirms your access pathway (disability or early intervention) and your ‘categories of impairment’
- Impairments will be directly linked to funding decisions. Your planner will use this information to help decide what supports are funded.
- Any supports purchased with NDIS funds must meet the updated definition of NDIS supports and relate to the listed impairment
- This change recognises that people with the same diagnosis can have different support needs
A participant, or their nominee, can apply to change their impairment category if it is incorrect or no longer applies. This process has yet to be defined and supporting evidence will be required.
Impairment categories.
The NDIS impairment categories are:
- Intellectual
- Cognitive
- Neurological
- Sensory
- Physical
- Impairments attributable to a psychosocial disability.
One or more categories may be listed on your impairment notice.
New definition of NDIS supports.
From 3 October 2024. This change applies to all participants.
There is now a list of NDIS supports that outlines:
- What you can spend your NDIS funding on (what IS an NDIS support)
- What you are not allowed to spend your NDIS funds on (what is NOT an NDIS support).
The NDIS will now only fund supports related to the impairments that led to your acceptance onto the scheme. This means you can only spend money in your NDIS Plan on supports that relate to the impairment identified during your initial access request.
This list of NDIS supports will remain in place while the government works with the states and territories on the final list.
There will be a ‘transition period’ for the first year of the new NDIS supports lists to ensure participants aren’t penalised for minor mistakes (for purchases less than $1,500). If the cost is above $1500 the transitional rule does not apply and you may be liable to repay the funds to the NDIS. This may be waived in ‘special circumstances’ if the participant unintentionally or unknowingly breaks the rules.
Replacement supports.
There is also a substitution process that will allow participants to request a replacement support for items that are generally considered not NDIS supports.
There are two types of supports where this applies.
- Standard commercially available household items in certain circumstances
- Smart watches, tablets, smartphones or an app used for accessibility or communication purposes.
For further information check out NDIS replacement supports: What they are and how they work.
Previously approved supports.
Participants can continue to access supports that are not NDIS supports if they were identified as reasonable and necessary before 3 October 2024, for the duration of their existing plan.
This also includes situations where the Administrative Appeals Tribunal has decided that the support should be funded as a reasonable and necessary support.
This rule does not apply to sexual services, alcohol or drugs.
For more details about the new NDIS supports lists, see What does NDIS fund?
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How the new legislation will affect people on the NDIS.
New total budget amounts.
From 3 October 2024. This will apply to all new NDIS plans issued after 3 October.
Plans issued after 3 October 2024 will have a total budget amount instead of individual line items. This means you’ll see a total amount for all supports in your plan. This is known as total funded supports.
This change makes it easier to know how much funding you have and how long it needs to last. You can’t spend more funding than what’s available in your plan.
As part of this change, all new plans created after 3 October 2024 will be for 12 months. Longer plans will be reintroduced in the future.
Plan management decisions.
From 3 October 2024. May apply to people who use a plan manager and people who self manage their plans.
The NDIS will be able to change the way your plan is managed if you, your nominee or your plan manager are not using your funding in line with your plan.
New claims and payments framework.
From 3 October 2024 and 3 October 2025.
From 3 October 2025, claims against an NDIS Plan must be made within two years of providing the support. For the first 12 months after 3 October 2024, the NDIA will honour all claims made for supports provided before the law came into effect.
Here’s an example of what that might look like:
‘Jason’ submits an invoice on 1 October 2025 for a service that is on the ‘not an NDIS support’ list that was delivered 2.5 years ago. In this circumstance, the claim can be submitted to the NDIA. However, if he submits the same invoice on or after 3 October 2025, it would not be able to be submitted to the NDIA. This is because the service was delivered more than 2 years prior.
Note: No matter when an invoice is received or submitted, the new legislation rules around excluded services apply to any and all claims with a service on or after 3 October 2024.
Requests for information and revoking your plan.
From 3 October 2024.
The NDIA can request specific information, or require you to do certain things like undergo an assessment, if it’s reviewing your status as a participant.
If you do not comply with the request within a reasonable time, the NDIA may revoke your access to the NDIS.
Accessing the NDIS.
From 3 October 2024. Applies to all NDIS access requests after this date and existing participants whose eligibility is being reassessed.
Access decisions.
The new rules mean prospective participants will receive more detailed information about their ‘access decision’ when they first become a participant.
When you provide all the necessary information, the NDIA will decide if you can access the NDIS. You will receive a letter that explains this decision, called an ‘access decision’.
Participants will know how they have met the access requirements for the NDIS, either via the disability requirements, the early intervention requirements or both.
Disability requirements.
Disability requirements have been updated:
- Existing: Disability requirements previously stated that the person “is likely to require a support under the NDIS for the person’s lifetime”
- New: Disability requirements now state that the person is “likely to require an NDIS support under the NDIS for the person’s lifetime”.
Early intervention requirements have also been updated:
- Existing: Early intervention requirements previously stated that early intervention supports must be likely to benefit the person by reducing their future needs for supports in relation to disability
- New: Early intervention requirements now state that early intervention supports that reduce future needs must be NDIS supports.
These changes clarify that a person should only access the NDIS if they require supports which are NDIS supports.
This makes it clearer when a mainstream system that is not the NDIS is responsible for providing support. This change will impact people applying to access the NDIS and existing participants whose eligibility is being reassessed.
New access requests for revoked participants.
If you have your status as a participant revoked and request a review of that decision, you cannot make another access request until your review is complete.
Changes to reasonable and necessary supports criteria.
From 3 October 2024.
The new NDIS legislation introduces additional criteria under reasonable and necessary.
Existing: Supports purchased by NDIS funds must meet all the reasonable and necessary criteria:
- Related to your disability needs
- Help you pursue your goals
- Help improve economic and community participation
- Value for money
- Effective and beneficial
- Takes into account what is reasonably expected for families and communities to provide
- Most appropriately funded or provided through NDIS.
New:
- In addition to the above, the support must be necessary to address the needs of the participant arising from the impairment that met the disability requirements. This means that every support purchased with your NDIS funds needs to be directly connected to the impairment that gains you entry to the scheme. There are some exceptions which we expect to know more about in the future.
- The words ‘most appropriately funded or provided through the NDIS’ will be replaced by ‘the support is an NDIS support for the participant’. You will recall that there will be a new definition of NDIS supports which is what the legislation is referring to here.
Where to get more information.
It’s important to stay informed as changes to the NDIS take place. At Leap in! we are dedicated to helping people navigate the NDIS and the upcoming changes.
We’ll continue to share updates and practical information about changes to the NDIS through our regular channels, including this page.
Here are some useful links that relate to the changes.
Changes to the NDIS FAQs.
