The National Disability Insurance Agency (NDIA) has introduced so many changes in the past 12 months you can be forgiven for not keeping track. But the change introduced mid-last month impacts all National Disability Insurance Scheme (NDIS) participants, fundamentally changing the way in which all NDIS plans are designed, delivered and billed. Here, we break down the introduction of ‘Funding Periods’ and outline what you need to do.

So, what exactly has changed? As of 19 May 2025, the NDIS introduced ‘funding periods’ to new and reassessed plans—a change that they say is designed to improve financial planning, reduce stress and enhance service continuity for participants, but which has understandably introduced a little bit of anxiety, given the speed and significance of the changes.

As well as funding periods, the NDIA introduced some other terms to plans built after May 19th. They are:

• Total funding amounts – the total amount of funding included in an NDIS Plan
• Funding components – he total amount of funding allocated to a specific support or group of supports in a participant’s plan. (Note, funds in a funding component can only be used for the supports included in that component.)

Why Were Funding Periods Introduced?

Previously, participants received their entire annual budget upfront. While this offered flexibility, it also posed challenges. According to the NDIA, some participants found it difficult to manage their funds over a 12-month period, leading to risks of overspending early or under-utilising supports later in the plan.

To address these concerns, the Agency amended its legislation in October 2024 under Section 33 of the NDIS Act. This paved the way for structured funding releases—known as funding periods—to promote more consistent and sustainable use of plan budgets.

So, What Are NDIS Funding Periods?

Funding periods are regular intervals during which a portion of a participant’s total plan budget becomes available. Instead of receiving the full amount at once, participants will now access their funds in installments.

Installments will typically be quarterly, with funds released every three months, however, some support funding, such as the funding required for supported independent living (SIL) will be released monthly. Some supports, like Assistive Technology, may have longer periods and be funded across a 12-month period to allow for a larger, one-off purchase.

Funding will typically be released in equal payments across the funding periods, however, for some supports, it may be preferred to request more funding be released up front. This might be the case for behaviour support, for example, which requires more funding as a behaviour support plan is developed early on in your plan.

The Agency has advised that participants can request their own funding period durations, based on their own, individual needs, but that these need to be discussed at planning meetings. Similarly, if funding needs to be front-loaded, this has to be discussed at the planning meeting.

Funds that aren’t spent during a funding period will roll into the next funding period. However, any funds left unspent at the end of the plan, will not roll into the next plan. Importantly, the introduction of funding periods doesn’t reduce the total funding amount in a participant’s plan. It simply changes when the funds are made available.

What Changes Will Participants See?

If you’re a current NDIS participant, you won’t see any changes until your next plan reassessment. From that point forward, your plan will include a total funding amount, funding categories and funding periods. Your funding will then only be released according to those funding periods.

Here are the benefits that the NDIA is aiming to achieve:

1. More predictable budgeting: Funds are released in manageable chunks, helping you avoid overspending.
2. Improved service planning: Providers can align their services with your funding schedule.
3. Greater flexibility: Funding periods can be tailored to your circumstances, so long as you discuss them up front, in your planning meeting.

What This Means for You Moving Forward

The Agency believes that the introduction of funding periods is a positive step toward making the NDIS more participant-friendly. It encourages:

• Smarter financial planning
• More consistent support delivery
• Greater peace of mind for participants and their families

But in order to realise these benefits, it’s important to be aware of the changes.

We recommend you:

• Talk to your NDIS planner about your preferred funding schedule and highlight if any of your funds need to be front loaded.
• Work with your support coordinator and plan manager to align services with your funding periods.
• Ensure you inform your provider about your funding periods and funding amounts. While your support coordinator or plan manager has visibility over your funding periods, your provider will not be able to see this information in the PACE portal. It’s therefore important to have meaningful conversations with your service providers to ensure your supports are delivered sustainably.
• Plan ahead to ensure your supports continue smoothly throughout your plan.

If you need help understanding funding periods, or want to discuss your supports, contact us today by calling 1300 692 484 or by emailing enquiries@civic.org.au.