NDIS Funding Explained: Core, Capacity Building, Capital and Recurring Supports

What Are the Four NDIS Funding Budgets?

Your NDIS plan may include funding under the following categories.

The amount and type of funding in your plan depend on your individual disability-related needs and the NDIA’s funding decisions.

• Core Supports: Everyday disability-related assistance — for example, support workers and consumables.
• Capacity Building: Developing skills and independence — for example, occupational therapy and other eligible therapies.
• Capital Supports: Eligible equipment and modifications — for example, wheelchairs and home modifications.
• Recurring Supports: Certain ongoing payments — for example, eligible recurring transport payments.

1. What Are NDIS Core Supports?

Core Supports help participants with everyday activities, personal care and participation in their community.

This funding is commonly used for ongoing disability-related assistance.

What Can Core Supports Pay For?

Assistance with Daily Life

This may include support workers assisting with showering, dressing, meal preparation, cleaning and other eligible daily activities.

For example, a participant with significant physical impairments may require assistance with their morning routine and household tasks.

Assistance with Social and Community Participation

This may include support worker assistance to participate in social activities, community events and recreational opportunities.

For example, a participant who cannot independently navigate community environments because of their disability may require assistance to access community activities.

Consumables

Consumables can include eligible everyday disability-related products, such as continence supplies and certain low-cost assistive technology items.

Is Core Funding Flexible?

Core funding is generally the most flexible NDIS support budget.

Participants can often use available funding across eligible Core support categories, provided the spending is consistent with their plan and applicable NDIS rules.

However, not every support is flexible. Some funding is specifically allocated or restricted.

Participants should always check their individual plan before changing how funding is used.

2. What Is NDIS Capacity Building Funding?

Capacity Building funding supports the development or maintenance of skills, independence and participation.

While Core Supports often provide assistance with completing activities, Capacity Building Supports focus on improving a participant’s ability to manage or participate in those activities.

What Can Capacity Building Funding Pay For?

Depending on the participant’s plan, Capacity Building funding may include:

Improved Daily Living

This commonly includes eligible allied health assessments and interventions, such as Occupational Therapy, Physiotherapy and Speech Pathology.

An Occupational Therapist may assist a participant to develop daily living skills, improve functional independence or complete a Functional Capacity Assessment.

Support Coordination

Where funded, support coordination assists participants to understand and implement their plans, connect with suitable providers and develop the skills needed to coordinate supports.

Improved Relationships

This may include eligible specialist behaviour support and interventions addressing disability-related behavioural and relationship needs.

Increased Social and Community Participation

This can include supports designed to develop the skills needed for greater independence and community participation.

Improved Life Choices

This category may include plan management and support to develop the skills required to manage NDIS funding.

Finding and Keeping a Job

Eligible supports may help participants develop employment-related skills and overcome disability-related barriers to employment.

Can Capacity Building Funding Be Transferred Between Categories?

Capacity Building funding is generally stated by support category.

This means funding allocated to one Capacity Building category cannot simply be transferred to another.

For example, funding allocated to Improved Daily Living cannot ordinarily be used to pay for unrelated supports from a different Capacity Building category.

3. What Are NDIS Capital Supports?

Capital Supports fund eligible higher-cost assistive technology, equipment, home or vehicle modifications and certain specialist housing supports.

These supports are generally intended to address specific disability-related functional needs.

What Can Capital Funding Pay For?

Assistive Technology

Examples may include:

The type of equipment funded depends on the participant’s disability-related needs and applicable NDIS requirements.

Some items require clinical assessment, equipment trials, quotations or additional approval.

• Manual wheelchairs.
• Powered wheelchairs.
• Power-assist devices.
• Hoists and transfer equipment.
• Specialised beds and mattresses.
• Pressure care equipment.
• Specialised bathroom equipment.
• Communication equipment.

Home Modifications

Eligible modifications may include accessible bathroom alterations, ramps, doorway widening and other changes required to improve disability-related accessibility.

Specialist Disability Accommodation

SDA funding is available to eligible participants with extreme functional impairment or very high support needs who require specialist housing.

SDA funding is distinct from everyday support worker assistance or Supported Independent Living funding.

Is Capital Funding Flexible?

Capital Supports are generally more restricted than Core Supports.

Funding may be allocated for a particular item or approved purpose.

Participants should confirm relevant approval and funding conditions before purchasing equipment or arranging modifications.

4. What Are NDIS Recurring Supports?

Recurring Supports are another type of NDIS support budget.

They can be used for certain ongoing payments identified in a participant’s plan.

For example, eligible participants may receive recurring transport payments.

Not every participant will have a Recurring Supports budget.

Participants should check their individual plan to understand whether recurring funding is included and how it is paid.

5. Which NDIS Funding Category Pays for Occupational Therapy?

Eligible Occupational Therapy assessments and interventions are commonly funded through the Capacity Building budget, particularly Improved Daily Living.

Occupational Therapy may assist with:

It is important to distinguish between the funding for an Occupational Therapist to assess and recommend equipment and the funding required to purchase the equipment itself.

For example, an eligible wheelchair assessment may be funded through an appropriate therapy support category, while the approved wheelchair purchase may be funded through Capital Supports.

The applicable funding arrangements should be checked against the participant’s plan and current NDIS rules.

• Functional Capacity Assessments.
• Daily living skill development.
• Functional mobility assessment.
• Assessment of support requirements.
• Assistive technology assessment and prescription.
• Home modification assessment and recommendations.

6. Can You Move NDIS Funding Between Categories?

The ability to move funding depends on whether the relevant support budget or funding component is flexible or stated.

Some Core funding is flexible across eligible supports.

Capacity Building and Capital funding generally have more specific restrictions.

Funding cannot automatically be moved between Core, Capacity Building and Capital budgets.

Participants should review the funding conditions within their individual plans before making changes.

7. What Are NDIS Funding Periods?

NDIS funding periods determine when particular amounts of funding become available for use.

A participant may have an overall plan budget, but the full amount may not be available to spend immediately.

For example, funding may be released across specified periods throughout the plan.

This means participants and providers need to consider both the total approved budget and the amount available during the current funding period.

Understanding funding periods can help prevent overspending and disruptions to essential services.

8. What Happens if Your NDIS Funding Is Not Enough?

A participant’s disability-related support needs can change over time.

If your current plan no longer meets your needs, it may be appropriate to seek a plan reassessment or another relevant review process.

Supporting evidence may include updated allied health reports, Functional Capacity Assessments, support worker records and evidence of changes in functional capacity.

The purpose of this documentation is to clearly explain the participant’s current needs and why additional or different supports are being requested.

9. How Can an Occupational Therapy Functional Capacity Assessment Help?

An Occupational Therapy Functional Capacity Assessment examines how disability affects everyday functioning.

The assessment can provide detailed clinical evidence about personal care, mobility, domestic activities, communication, community participation and other relevant functional domains.

A comprehensive FCA may help identify unmet disability-related needs and provide recommendations for appropriate supports.

The NDIA makes funding decisions, but well-supported clinical evidence can assist decision-makers to understand the participant’s functional circumstances.

Understanding Your NDIS Plan With Today & Tomorrow Allied Health Services

Today & Tomorrow Allied Health Services provides Occupational Therapy assessments for NDIS participants across Australia.

Our services include Functional Capacity Assessments, assistive technology assessments, Supported Independent Living assessments and Specialist Disability Accommodation assessments.

We provide Australia-wide telehealth options and community-based assessments in selected locations.

Whether you are preparing for a plan reassessment, seeking assistive technology or needing updated evidence about your functional needs, our team can discuss the most appropriate assessment pathway.

Need an NDIS Functional Capacity Assessment?

Frequently Asked Questions About NDIS Funding

What are the main NDIS funding categories?

NDIS plans can include four support budgets: Core Supports, Capacity Building Supports, Capital Supports and Recurring Supports. Each budget has different purposes and spending conditions.

Does NDIS Core funding pay for Occupational Therapy?

Occupational Therapy is commonly funded through Capacity Building, particularly Improved Daily Living, rather than Core Supports. Participants should check their individual funding arrangements.

Can I use NDIS funding to buy a wheelchair?

Eligible participants may receive funding for wheelchairs through appropriate assistive technology funding arrangements. The equipment must meet applicable NDIS criteria and may require assessment and approval.

Can unused Core funding be transferred to Capacity Building?

Generally, no. Funding cannot automatically be transferred between different NDIS support budgets. Some Core funding is flexible within its permitted support categories.

What is the difference between Capacity Building and Capital funding?

Capacity Building funding generally supports assessments, therapies and skill development. Capital funding generally supports eligible equipment, modifications and specialist housing arrangements.

Do all NDIS participants receive Capital funding?

No. Funding depends on the participant’s individual disability-related needs and the supports approved in their plan.

What should I do if my NDIS plan does not meet my needs?

Consider speaking with your my NDIS contact or support coordinator about the appropriate review or reassessment process. Updated clinical evidence, including a Functional Capacity Assessment where relevant, can help explain your support needs.

Does Your NDIS Plan Reflect Your Functional Support Needs?

If your plan no longer matches your needs, a Functional Capacity Assessment can provide the clinical evidence to support a reassessment. Send a referral online and we will discuss the most appropriate assessment pathway.