NDIS Funding Categories Explained: The Complete Guide

Your NDIS plan has 3 main funding categories: Core Supports, Capacity Building, and Capital Supports. Each category has rules about what you can spend it on.

Think of it like having 3 different bank accounts - you can’t just move money between them (unless your plan allows “flexible funding”). Understanding which category pays for what helps you use your funding correctly and avoid mistakes.

The 3 NDIS Funding Categories (Quick Overview)

CategoryWhat It’s ForTypical % of PlanFlexibility
Core SupportsDaily living help and activities60-80%Flexible within Core
Capacity BuildingBuilding skills and independence15-30%Usually fixed
Capital SupportsEquipment and home modifications5-15%Fixed (one-off)

Category 1: Core Supports (Daily Living)

Core Supports is funding for day-to-day assistance and activities.

What Core Supports Covers

Core Supports has 4 sub-categories:

1. Assistance with Daily Personal Activities

What it pays for:

  • Personal care (showering, dressing, toileting)
  • Support workers helping with daily tasks
  • Meal preparation and cooking assistance
  • Household tasks (cleaning, laundry)
  • Medication management
  • SIL (Supported Independent Living) - 24/7 support in shared living

Examples:

  • Support worker helps you shower: ✓ Core
  • Support worker cooks your meals: ✓ Core
  • Support worker cleans your house: ✓ Core
  • Support worker takes you shopping: ✓ Core (daily assistance)

Typical cost: $50-$70/hour for support workers

2. Assistance with Social and Community Participation

What it pays for:

  • Support workers at community activities
  • Group activities and outings
  • Recreation programs
  • Support to participate in community
  • Day programs

Examples:

  • Support worker goes to the movies with you: ✓ Core
  • Attending day program: ✓ Core
  • Group recreation activity: ✓ Core
  • Support to attend social events: ✓ Core

NOT Community Participation (common mistake):

  • Therapy (OT, physio, speech) = Capacity Building, NOT Core
  • Support Coordinator = Capacity Building, NOT Core

Typical cost: $50-$70/hour for support workers, $10-$30/hour for group activities

3. Consumables

What it pays for:

  • Continence aids (pads, catheters, bed pads)
  • Low-cost assistive technology (under $1,500)
  • Equipment under $1,500 (grab rails, shower chairs, walking aids)
  • Cleaning products if support worker uses them

Examples:

  • Continence pads: ✓ Core Consumables
  • Shower chair ($200): ✓ Core Consumables
  • Walking frame ($150): ✓ Core Consumables
  • Wheelchair ($5,000): ✗ Capital Supports (over $1,500)

Rule: Under $1,500 = Core Consumables. Over $1,500 = Capital Supports.

Typical budget: $500-$5,000/year

4. Transport

What it pays for:

  • Transport to appointments
  • Transport to community activities
  • Taxi vouchers
  • Support worker driving you
  • Community transport services

Examples:

  • Taxi to OT appointment: ✓ Core Transport
  • Support worker drives you to social activity: ✓ Core Transport
  • Public transport fares: ✓ Core Transport

NOT Transport:

  • Vehicle modifications = Capital Supports
  • Fuel for your own car = Not funded

Typical budget: $1,500-$3,000/year

Core Supports Budget Flexibility

Core Supports is FLEXIBLE:

  • Can move money between the 4 sub-categories
  • Underspend Transport? Use it for Social Participation
  • Need more Daily Living support? Use Consumables budget

Example: You have $50k Core budget split as:

  • Daily Living: $40k
  • Social Participation: $7k
  • Transport: $2k
  • Consumables: $1k

If you only spend $1k on Transport, you can use the other $1k for Social Participation. Core is one big flexible pool.

Category 2: Capacity Building (Building Skills)

Capacity Building is funding to build your skills, independence, and capacity.

What Capacity Building Covers

Capacity Building has 8 sub-categories:

1. Improved Daily Living

What it pays for:

  • Occupational therapy (OT)
  • Physiotherapy
  • Speech therapy
  • Exercise physiology
  • Dietitian
  • Behavior support practitioners

Examples:

  • OT helps you learn cooking skills: ✓ Capacity Building
  • Physio teaches exercises: ✓ Capacity Building
  • Speech therapy for communication: ✓ Capacity Building

Typical rates: $193-$214/hour (NDIS price guide 2026) Typical budget: $5,000-$20,000/year

2. Support Coordination

What it pays for:

  • Support Coordination (Level 1, 2, 3)
  • Specialist Support Coordination
  • Help navigating NDIS
  • Finding and connecting with providers

Typical rates: $70-$100/hour for standard SC, $200+/hour for specialist Typical budget: $5,000-$8,000/year standard, $15,000-$30,000/year specialist

3. Improved Life Choices

What it pays for:

  • Plan management
  • Financial planning
  • Decision-making support
  • Development of life skills

Typical budget: $600-$1,500/year for plan management

4. Improved Relationships

What it pays for:

  • Social skills training
  • Relationship counseling
  • Communication support

5. Improved Health and Wellbeing

What it pays for:

  • Psychology services (mental health)
  • Counseling
  • Health and wellness programs

Typical rates: $214/hour for psychology

6. Improved Learning

What it pays for:

  • Educational support
  • Tutoring
  • Life skills training

7. Improved Employment

What it pays for:

  • Job coaching
  • Workplace assessments
  • Employment support services
  • School Leaver Employment Supports (SLES)

8. Improved Home Living

What it pays for:

  • Finding and keeping accommodation
  • Tenancy support
  • Household skills training (different from daily assistance)

Capacity Building Budget Flexibility

Capacity Building is usually FIXED:

  • Cannot move between sub-categories without plan review
  • OT budget can only be used for OT
  • Support Coordination budget only for SC
  • Less flexible than Core

Exception: Some plans have “flexible Capacity Building” but this is rare. Check your plan.

Category 3: Capital Supports (Equipment & Modifications)

Capital Supports is funding for assistive technology and home/vehicle modifications.

What Capital Supports Covers

Assistive Technology (AT)

What it pays for:

  • Wheelchairs and mobility aids (over $1,500)
  • Communication devices
  • Hearing aids
  • High-cost equipment
  • Prosthetics

Examples:

  • Electric wheelchair ($8,000): ✓ Capital AT
  • Communication device ($3,000): ✓ Capital AT
  • Shower chair ($200): ✗ Core Consumables (under $1,500)

Assessment required: OT or specialist assessment for high-cost AT

Home Modifications

What it pays for:

  • Ramps
  • Bathroom modifications
  • Widening doorways
  • Ceiling hoists
  • Accessible kitchen

Assessment required: OT assessment for most home mods

Example costs: $5,000-$50,000+ depending on modification

Specialist Disability Accommodation (SDA)

What it is:

  • Rent for specialist accessible housing
  • For people with extreme functional impairment
  • Very strict eligibility (only 6% of participants)

SDA is NOT a “modification” - it’s ongoing rent funded separately in your plan

Capital Supports Budget Flexibility

Capital is FIXED and ONE-OFF:

  • Cannot move to other categories
  • Once spent, it’s gone until next plan
  • Usually one-off purchases (equipment lasts years)

How NDIS Funding is Allocated in Your Plan

Typical plan allocation examples:

High Support Needs (SIL participant)

Total plan: $250,000/year

  • Core: $180,000 (72%) - mostly SIL 24/7 support
  • Capacity Building: $60,000 (24%) - OT, physio, SC
  • Capital: $10,000 (4%) - equipment replacement

Moderate Support Needs

Total plan: $50,000/year

  • Core: $30,000 (60%) - support workers 15 hours/week
  • Capacity Building: $15,000 (30%) - OT, physio, SC, dietitian
  • Capital: $5,000 (10%) - wheelchair

Low Support Needs (Therapy-focused)

Total plan: $25,000/year

  • Core: $7,000 (28%) - some support workers, transport
  • Capacity Building: $16,000 (64%) - OT, psychology, SC
  • Capital: $2,000 (8%) - small AT items

Your plan mix depends on YOUR needs, not formulas.

How to Check Your Budget Categories

Option 1: NDIS Participant Portal (myplace)

  • Login at myplace.ndis.gov.au
  • View “My Plan” → “Budgets”
  • See breakdown by category and sub-category
  • Track spending in real-time

Option 2: Paper plan

  • Section 7 shows budget breakdown
  • Look for dollar amounts next to each category
  • Check for “flexible” or “fixed” notation

Option 3: Ask plan manager

  • Plan managers track categories for you
  • Request budget statement showing categories

Option 4: Call NDIS

  • 1800 800 110
  • Ask for budget breakdown

Common Mistakes Using NDIS Categories

Mistake 1: Paying Support Workers from Capacity Building

Wrong category. Support workers are Core Supports (Daily Living), NOT Capacity Building. NDIS will reject the claim.

Correct: Pay support workers from Core → Daily Living budget

Mistake 2: Paying OT from Core Supports

Wrong category. Therapy is Capacity Building → Improved Daily Living, NOT Core.

Correct: Pay OT from Capacity Building → Improved Daily Living

Mistake 3: Buying AT under $1,500 from Capital

Wrong category. Items under $1,500 are Core Consumables, not Capital Supports.

Example: Shower chair ($200) should be Core Consumables, not Capital.

Mistake 4: Trying to move Capacity Building to Core

Not allowed. Most plans don’t allow moving between categories. You can’t “borrow” from Capacity Building to pay for more Core supports.

Exception: “Flexible funding” plans (rare)

Mistake 5: Paying Support Coordinator from Core

Wrong category. SC is always Capacity Building → Support Coordination, never Core.

What Happens If You Use the Wrong Category?

NDIS claim gets rejected:

  • Provider submits claim to wrong category
  • NDIS rejects it
  • Provider re-submits to correct category
  • Delays payment

You might have to repay:

  • If you’re self-managed and pay from wrong category
  • NDIS may ask for money back during audit
  • Can create debt

Budget impacts:

  • Using wrong category depletes the wrong budget
  • Can run out of correct budget while wrong one sits unused

How to fix:

  • If plan managed: plan manager fixes it
  • If self managed: resubmit claim to correct category through myplace

Frequently Asked Questions

Can I move money between Core and Capacity Building? Usually no. Most plans have fixed boundaries between categories. Within Core, yes (it’s flexible). But Core → Capacity usually requires plan review.

What if I don’t use all my Capital budget? It expires at end of plan. Capital is one-off funding. If you don’t spend it, you lose it. Request next plan if you need more Capital later.

Can I choose how much goes in each category? Not directly. NDIS decides category allocation based on your needs (assessments, goals, evidence). You can request changes at plan review if allocation doesn’t work.

Is SIL Core or Capacity Building? Core Supports. SIL is funded from “Assistance with Daily Life (Supported Independent Living)” under Core, not Capacity Building.

Where does Support Coordination come from? Capacity Building → Support Coordination. Never Core. Typical funding: $5,000-$8,000/year.

What if my Capacity Building budget runs out but I have Core left? You can’t move Core to Capacity. Options: (1) pay privately, (2) request plan review to increase Capacity Building, (3) wait until next plan.

Can I save unused Core budget? No. Core budget expires at end of plan period. Use it or lose it. Cannot roll over to next plan.

Find NDIS Providers Across All Categories

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Find support workers, therapists, and specialized services.

Call 1800 953 253 for help understanding your NDIS budget categories and finding providers.

Key Takeaways:

  • Core = daily assistance (flexible within Core)
  • Capacity Building = building skills (usually fixed per sub-category)
  • Capital = equipment and modifications (fixed, one-off)
  • Check your plan to see what’s flexible vs fixed
  • Always pay from the correct category to avoid rejections

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