Update – since October 2024, there have been a lot of changes within the NDIS. Each of these has meant a ‘settling in’ period where the NDIS has published confusing, contradictory or incomplete information around how these changes are meant to be adminstered by plan managers. One thing the agency has been clear on however, is that plan managers are being held financially liable for claims not made in accordance with a participant’s plan.
At OnTime, we go to great lengths to ensure we are as up to date on NDIS rules and guidelines as we can be. Where there is any doubt, or where claims do not appear to be in accordance with a plan, we need the NDIS to advise whether claims are able to be made. We have updated our post based on the latest information we have from the NDIS.
What are Funding Periods?
All new NDIS plans from May 2025 have funding periods, which regulate how much funding can be spent over a stated time. Funding periods can apply to:
- The entire NDIS plan – money funded for the length of the plan.
- Funding Components – previously called Category Budgets (Core, Capacity Building and Capital supports). Each Component / Category will have its own funding period (often more than one).
The NDIS works out how long each funding period is and how much funding they will release in each period.
- Some will be for one month (like Choice & Control, SIL or SDA).
- Most supports are quarterly (like Capacity Building and most Core supports).
- Some funds might be released up front (like AT).
Details for funding periods will be shown in a participant’s plan, on the plan manager’s portal, and the NDIS portal. Providers will need to ask participants to advise them of funding period details.
What about unused funds?
Unused funds from one period will ‘roll over’ to the following funding period/s.
When a plan ends, unused funds do not ‘roll over’ to a new plan – this has not changed.
Jane’s plan has monthly funding periods for her SIL supports. Each month is funded for $10,000. Her first funding period started on 14/7/25 and finished on 13/8/25. She has $1,000 remaining unspent from that period. This $1,000 rolled over to the next funding period starting on 14/8/25. She now has $11,000 to use during 14/8/25 – 13/9/25.
What if funds run out in a funding period?
Funds cannot be ‘borrowed’ from future funding periods without NDIS permission. If funding periods do not address the needs of the participant, they need to request a change to their NDIS plan.
The NDIS advises:
Under the NDIS laws, we cannot pay a claim which is more than the funding that’s available in the funding period, unless it meets one or more of the following circumstances:
- s45(5) (a) Participant has experienced fraud or financial exploitation.
- s45(5) (b) Participant faces an imminent threat to their life, health or safety and the payment is necessary to prevent or lessen it.
- s45(5) (c) Participant was unable to request a change to their plan.
- s45(5) (d) Participant has requested a variation for crisis or emergency funding due to significant change in their support needs, but the Agency has not yet made a decision.
Once funds are exhausted in a funding period, no further invoices can be paid. Our process at OnTime Plan Services for this is:
- We notify the participant and provider that funds are exhausted, and we cannot pay any more invoices for services during the relevant funding period.
- Providers will need to liaise with the participant as to payment of the invoice.
- Participants will need to discuss any plan changes or concerns with the NDIS directly.
We have tried on several occasions to obtain permission from the NDIS to make a claim where funding was exhausted in a funding period. The NDIS did not provide us with permission in any of those cases.
What does this mean for providers?
What is providers’ responsibility when delivering supports?
Providers are responsible for delivering supports in line with the participant's plan. This includes confirming the participant’s plan has sufficient funding within each funding period and support category to meet their needs.
Providers enter into agreements with participants to provide them with services. Participants can choose to use their NDIS funding to pay for these services. If NDIS funds are exhausted, the provider will need to ask the participant to pay outstanding amounts via other means.
Before starting services, providers should discuss with the participant:
- Whether the participant’s plan has funding periods, and if so, what these are.
- How much funding the participant agrees to spend in each funding period, and if this fits with what was funded.
- How outstanding invoices will be paid if the supports requested exceed the available funding.
Why is it important for providers to avoid over servicing?
Under NDIS legislation, claims exceeding the available funding in a support category in the current funding period cannot be paid. To ensure both providers and participants are protected, it is essential to deliver services within the participant’s budget and funding periods. Avoiding over-servicing, especially if funding is nearing its limit, ensures continuity of supports and prevents financial risks for participants and providers.
We recommend that providers invoice in a timely manner to help participants budget their funds more easily.
Providers need to monitor funds they’ve claimed during each funding period, to ensure they stay within the agreed limits. For any additional supports requested, it should be confirmed that funding is available.
Participants who do not have support coordinators may need help to budget their funding. The NDIS provides a Budget Calculator or Support Organiser tool that can be used to help with this: https://www.ndis.gov.au/participants/plan-implementation-directory/budget-calculators