What Can You Spend NDIS Funding On?
Updated: Sep 22
If you have ever wondered what your NDIS funding can actually be used for, you are not alone. It is one of the most common questions participants ask, and the most important to get right.
Your NDIS funding exists to support your independence, your goals, and your participation in everyday life. It can be used for supports that are related to your disability, meet the reasonable and necessary rules, and fall within the categories in your plan.
This guide explains what NDIS funding can be used for, and how to check whether a specific support is included in your plan.
What can NDIS funding be used for across the Support budgets
Every NDIS plan has four support budgets:
Core Supports
Capacity Building Supports
Capital Supports
Recurring Supports.
Your plan includes the budgets and support categories that match your needs, so not everyone has funding in all four. Most participants have Core, Capacity Building and Capital Supports. Some also have Recurring Supports, which usually covers transport paid to you on a regular basis.
There are two words you will see throughout this guide. Here is what each one means.
Flexible funding. You can choose how to spend it, and you can move it between support categories inside the same budget.
Stated funding. You use it for the exact purpose stated in your plan, and it stays in that support category.
What can Core Supports funding be used for?
Core Supports is usually the largest and most flexible budget in your plan. It pays for supports that help you with everyday life and with taking part in your community.
Assistance with Daily Life. Help with personal tasks in day-to-day life so you can live as independently as possible. It may include personal care, help at home, and support with everyday routines.
Assistance with Social, Economic and Community Participation. Supports to take part in community, social, recreational, or work-related activities.
Consumables. Everyday items you need because of your disability. The NDIA gives two examples: continence products and low-cost assistive technology.
Transport. In this budget, transport means transport provided by a provider, such as a provider driving you to an activity.
Everyday transport works differently. If you have funding for taxis or public transport, this is usually paid from the Transport category in your Recurring Supports budget.
What can Capacity Building Supports funding be used for?
Capacity Building Supports help you build or keep your skills and independence over time. This funding is stated, so it stays in the category it was funded for.
Your Capacity Building budget can have up to nine categories. These are the ones most often included in plans.
Support Coordination. Helps you understand your plan, connect with providers, and use your funded supports. Some participants have Specialist Support Coordination instead which is for participants with more complex support needs.
Improved Daily Living. One of the most used categories. It pays for therapy and skills-based supports that build your independence. It can include:
occupational therapy
speech pathology
physiotherapy
psychology and counselling, where it relates to your disability
behaviour support
skills training to help you manage daily tasks on your own
Improved Health and Wellbeing. Supports that improve your physical and mental wellbeing, where the need relates to your disability. It can include:
exercise physiology
dietetics, where it relates to your disability
personal training, where the trainer holds the qualifications, the NDIA requires
This category works alongside the healthcare system rather than replacing it. Services covered by Medicare are funded through Medicare. Gym memberships are not treated as an everyday cost, so they are not funded.
If you are on a PACE plan, this category may appear as Health and Wellbeing. It is the same category.
Improved Learning. Support to move from school into further education or adult life. Most often included in plans for younger participants.
Improved Life Choices. This category pays for plan management. It is funded separately by the NDIA, does not come out of the funding for your other supports, and costs you nothing out of pocket.
This is why plan management does not cost you anything. Refer to: Is NDIS Plan Management Really Free?
Improved Relationships. Behaviour support and social skills support, helping you build positive relationships and manage situations you find difficult because of your disability.
Improved Living Arrangements. Support to find and keep suitable housing, including help when you move to a new home.
Finding and Keeping a Job. Employment supports, such as help to look for a job, supported employment, and building skills for the workplace.
What can Capital Supports funding be used for?
Capital Supports pays for higher cost items, usually one-off purchases or equipment you will use for a long time. This is the least flexible budget, as the funding is tied to specific approved items.
Assistive Technology
Assistive technology means equipment, devices and tools that help you do everyday things more independently. What you need to provide depends on the item costs.
Low-cost, under $1,500 per item. Usually paid from your Core Consumables budget. No quote, written evidence or approval before you buy.
Mid-cost, $1,500 to $15,000 per item. You need written evidence from your allied health practitioner or another assistive technology advisor. It does not have to be a formal assessment, but it does need to be in writing. The evidence should explain the type of assistive technology you need, why it is the best value for your support needs, how it helps you work towards your goals, and an estimated cost.
High-cost, over $15,000 per item. You need an assessment report from a qualified assistive technology assessor, plus a quote including delivery, installation and any training costs.
If you need to try an item before you know it suits you, the NDIA can include funding in for the trial.
Home Modifications
If your home is not safe or accessible for you, Capital Supports can pay for changes such as:
ramps and accessible pathways
bathroom and wet area changes
grab rails and safety supports
wider doorways for wheelchair access
other changes recommended by an occupational therapist
These usually need an assessment from an occupational therapist, and quotes from qualified builders, before approval.
Specialist Disability Accommodation
Specialist Disability Accommodation, also called SDA, is housing designed for participants with very high support needs. SDA funding is included in a small number of plans.
What NDIS funding cannot be used for?
Your NDIS funding is for supports connected to your disability. The following sit outside that.
Everyday living costs. Rent, food, bills, and general household costs are not covered. If a cost is one that a person without disability would also have, it is usually not funded. The exception is where your disability creates an extra cost on top of the usual one.
Supports another service provides. The NDIS works alongside other government services. Hospital care, appointments covered by Medicare, and mainstream school education are funded through other government programs.
Items priced above the NDIS price limit. The NDIS Pricing Schedule sets maximum prices for most supports. Services priced above those limits usually not funded.
Anything illegal or unsafe. Supports involving illegal activity, or creating an unreasonable safety risk, cannot be funded.
Income replacement. NDIS funding cannot be used to replace income or wages.
If an item you need is not on the NDIS supports list, it may still be possible to have it funded as a replacement support. You need to apply to the NDIA and be approved before using your funding this way. Your plan manager can explain the steps.
What are the reasonable and necessary rules?
Every support in your NDIS plan meets the reasonable and necessary rules. This is not an exam and it is not something you have to pass. It is a set of rules the NDIA uses to decide what your NDIS funding can be used for.
A funded support needs to:
relate to your disability
help you pursue your goals
help you take part work, study and social activities
be value for money, meaning the cost is reasonable for the benefit you receive
be likely to be effective and beneficial for you
take into account support from family, carers, and other government services
be an NDIS support, or an approved replacement support
These rules are applied when your plan is made, so the supports already in your plan have met them. If you want to add a new support, or use your funding in a new way, your plan manager can help you understand whether it is likely to meet these rules.
How do you know if a support is covered by your plan?
The simplest way to check is to ask your plan manager before you book a service or buy something. As your plan manager, First2Care can tell you:
whether the support fits one of your funded support categories
whether the price sits within the NDIS Pricing Schedule
whether you need a service agreement in place before an invoice can be paid
This step matters. If you start with a provider and the support turns out not to be covered, you may have to pay for it yourself. Checking first avoids that. Your plan manager is there to help you use your funding with confidence, not only to process invoices after the money has been spent.
Frequently asked questions about NDIS funding
Can I spend my NDIS funding on anything I want?
Your funding is for supports that relate to your disability, fit the support categories in your plan, and meet the reasonable and necessary rules.
Can I move funding between NDIS support categories?
If your Core Supports funding is flexible, you can usually move it between Core Supports categories. Capacity Building and Capital funding is stated, so it stays in the category it was funded for.
What happens if I spend funding on something that is not covered?
If a purchase or service turns out not to be covered by your plan, the NDIA may not pay for it. In some cases you may need to repay the amount. This is why it helps to check first.
What if I need something that is not on the NDIS support list?
It may still be possible to have it funded as a replacement support. You need to apply to the NDIA and be approved before using your funding this way.
Does plan management funding come out of my other supports?
No. Plan management is funded separately by the NDIA under Improved Life Choices in the Capacity Building budget. Choosing a plan manager like First2Care does not reduce the funding available for your other supports.
What if I need a support that is not in my plan?
You can ask the NDIA for a plan reassessment or a plan variation. A variation changes part of your current plan. A reassessment replaces it with a new one, and it applies when there has been a significant and ongoing change to your support needs. Your my NDIS contact can help you work out which suits your situation.
Can I use NDIS funding for a support worker who is not registered with the NDIS?
If you are plan managed, you can use both registered and unregistered providers for most supports. This gives you more choice than agency management. Your plan manager can help you set up a service agreement and process their invoices correctly.
Know your funding and use it with confidence
Your NDIS plan is there to support your independence and your goals. Understanding what your funding covers makes a real difference, and so does having a plan manager who helps you use it.
At First2Care, we take time to help every participant understand their plan. We check budgets through the Plan Magic portal, and we answer questions whenever they come up.
Whether you are new to the NDIS, or you have had a plan for years, we are here to help. If you would like to talk something through, call us on 1300 322 273 or email support@first2care.com.au
