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.
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 during this funding period.
- We wait for that funding period to end, and then submit outstanding invoices to the NDIS. They then advise if funds from the current funding period can be used to pay amounts owed.
It is up to the NDIS to decide if invoices can be paid, once funds in a funding period are exhausted. Funds used to pay ‘debts’ from prior funding periods reduce the total amount available. Additional funding is NOT added.
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.
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