The National Disability Insurance Scheme (NDIS) is Australia’s nationwide support framework designed to help people with disability access funded supports, build independence, and improve quality of life. Understanding how NDIS funding works is crucial for both participants who rely on these supports and providers who deliver services under the scheme.
This guide breaks down the entire NDIS funding process in simple terms- no jargon, no confusion; just a clear pathway for participants, families, support coordinators, and service providers.
What is the NDIS, and Who Is It For?
The NDIS is designed to provide tailored, long-term funded supports to eligible Australians with disability. It helps participants build independence, access therapy and services, improve daily living, and participate in community life.
Eligibility Criteria
A person may access the NDIS if they:
- Are under 65 years old
- Are an Australian resident or citizen (or hold a Protected SCV)
- Have a permanent and significant disability that affects daily functioning
The NDIS is delivered by the National Disability Insurance Agency (NDIA).
In the system:
- Participants receive individualized funding
- Providers deliver support based on the plan budget
How the Funding Process Works – Step by Step
Application & Assessment
The journey begins with applying for NDIS access. Applicants submit necessary documents and medical evidence to demonstrate disability-related needs. The NDIA reviews this information to determine eligibility. A detailed overview of this access process is available through official government channels, including the NDIS access checklist.
Plan Creation and Goal Setting
Once approved, the participant attends a planning meeting to design an NDIS plan.
Goals may include:
- Improving communication
- Enhancing mobility
- Gaining independence
- Building social or work skills
- Receiving specialised therapy
The NDIS funds supports that help participants progress toward those goals. Each plan is tailored, ensuring funding is linked to what the participant genuinely needs to live more independently.
Choosing How Your Funding is Managed
Participants have three options for managing their plan budgets:
- Self-managed — complete control over bookings, invoices, and payments.
- Plan-managed — a registered plan manager handles finances on the participant’s behalf.
- NDIA-managed — payments and service claims are handled entirely by the NDIS portal.
Selecting the right option depends on the person’s comfort, skill level, and support network. Guidance on choosing a management type can be found in the NDIS portal under Plan Management Options.
The Three Key Funding Categories Under NDIS
Understanding NDIS budgets becomes much easier when broken down into its three core funding categories:
1. Core Supports
This category helps participants with everyday essential needs, such as:
- Personal care
- Meal preparation
- Community access
- Transport
- Consumables for daily living
Core funding is the most flexible, allowing participants to shift funds across various subcategories based on daily needs.
2. Capacity-Building Supports
These supports focus on skill development, independence, and long-term improvement, not short-term support. They may include:
- Therapy services
- Employment-related supports
- Training programs
- Behaviour support
- Support coordination
These funds are designed to build capability over time, rather than just provide daily assistance.
3. Capital Supports
Capital Supports cover high-cost items and infrastructure, including:
- Assistive technology (wheelchairs, speech-generating devices)
- Home modifications
- Vehicle modifications
- Specialist equipment
This budget is the least flexible and requires NDIA approval supported by assessments and quotes.
What Types of Supports & Services Can NDIS Fund?
The NDIS funds a wide range of disability-related supports, provided they meet the “reasonable and necessary” criteria. These may include:
1. Personal Care & Daily Living Support
Help with grooming, mobility, household tasks, meal prep, and self-care activities.
2. Therapeutic Supports
Including:
- Physiotherapy
- Occupational therapy
- Speech therapy
- Psychology
- Behaviour support
3. Assistive Technology & Mobility Equipment
Such as:
- Wheelchairs
- Communication devices
- Hoists
- Sensory equipment
- Home or vehicle modifications
4. Community Participation & Social Supports
Funding may be used for:
- Community access
- Group activities
- Employment support
- Social skill development
- Education-related assistance
These services must be directly connected to the participant’s disability and clearly linked to their goals.
What NDIS Does NOT Fund
While NDIS funding is broad, certain items are excluded. The NDIS does not pay for:
a. General day-to-day living expenses
Such as rent, groceries, bills, or entertainment.
b. Supports not related to disability
The NDIS funds supports only when they meet the “reasonable and necessary” test.
c. Health or education services provided by other systems
For example:
- GP visits
- Hospital care
- School tutoring
The NDIS avoids duplicating mainstream government services.
Role of Providers – How They Work with NDIS Participants
NDIS providers deliver disability-related supports. They may be:
- Support workers
- Allied-health professionals
- Plan managers
- Home modification specialists
- Equipment suppliers
- Community and transport service providers
Some providers choose to become NDIS-registered, meaning they meet strict compliance requirements set by the NDIS Quality and Safeguards Commission. Participants who are NDIA-managed can only use registered providers, while self-managed participants can access both registered and unregistered ones.
Providers must follow NDIS pricing arrangements, which are publicly available and updated regularly on the NDIS Pricing Arrangements & Price Limits page.
Their responsibilities include:
- Delivering disability-related supports
- Maintaining value for money
- Recording service notes and evidence
- Complying with audit and quality standards
Managing and Reviewing an NDIS Plan & Funding
NDIS plans are reviewed regularly – typically every 12 to 24 months to ensure the supports still match the participant’s current needs. Significant changes in circumstances can also trigger an early review.
Participants maintain full choice and control over:
- What supports they use
- Who provides them
- When and how services are delivered
Providers and participants should maintain proper documentation, invoices, service agreements, and outcome notes to ensure compliance.
Common Misconceptions & Challenges
Even experienced participants and providers encounter confusion around NDIS funding. Common challenges include:
- Believing the NDIS covers all expenses
- Difficulty understanding different funding categories
- Managing multiple budgets within a plan
- Navigating registered vs unregistered providers
- Mistaking the NDIS as unlimited funding rather than structured, needs-based support
- Failing to request timely plan reviews when needs change
Participants and providers often find navigating multiple budgets, documents, and funding rules overwhelming.
Compliance, record keeping, and lawful claiming are major challenges for providers especially new ones.
The more participants and providers understand the system, the easier it becomes to optimise funding.
Conclusion
NDIS funding may seem complex, but with a clear understanding from eligibility to plan creation, budgeting, service delivery, and reviews — the system becomes far more manageable.
For providers, staying compliant, understanding funding categories, and maintaining proper documentation is essential.
This is where Angels Compliance & Training Services becomes a valuable partner, offering everything from registration support to training, audit preparation, and ongoing compliance coaching.
With the right knowledge and support, both participants and providers can navigate the NDIS with confidence and clarity.
FAQs
1. Who is eligible for NDIS funding?
Anyone under 65 with a permanent and significant disability who meets residency and functional criteria.
2. What supports can I spend NDIS funds on?
Supports must be related to disability, reasonable and necessary, and aligned with your goals.
3. Can I choose any provider I want?
Self-managed participants can choose both registered and unregistered providers. NDIA-managed participants must use registered ones.
4. Do providers need training on NDIS rules?
Yes. Angels Compliance offers ongoing training for incident management, restrictive practices, service delivery, and more.
5. How do providers stay compliant when claiming?
By following the NDIS Pricing Arrangements and maintaining strong documentation, all the support Angels Compliance can help with.
6. Does the NDIS cover everything?
No. General everyday expenses and non-disability-related supports are excluded.
7. Can I change how my budget is used?
Yes, within the rules of each funding category.
8. How do providers get paid?
Payments are processed through the NDIS portal or via plan managers, depending on how the plan is managed.