NDIS Transport Funding: Complete Guide 2026

Getting from A to B should not be a barrier to living your life. For many NDIS participants, transport is one of the most practical and frequently used supports in their plan. Yet it is also one of the most misunderstood areas of NDIS funding, with complex rules, multiple funding types, and significant changes introduced from July 2025.

This guide covers everything you need to know: the three transport funding levels, how activity-based transport works, what the July 2025 provider travel changes mean for you, which state taxi schemes you can stack on top of your NDIS funding, and how to make a strong case for more transport funding at your next plan review.

Key Points

NDIS transport funding comes in three tiers: Level 1 ($1,784/year), Level 2 ($2,676/year), and Level 3 ($3,456/year), based on your employment or study situation.
Activity-based transport (line item 04_590_0125_6_1) is separate from the transport allowance and covers non-labour transport costs when a provider takes you to a community activity.
From 1 July 2025, therapy providers can only claim 50% of their hourly rate for travel time to participants, down from 100%. Support workers are not affected by this change.
State taxi subsidy schemes in NSW, Victoria, Queensland, South Australia, Western Australia, Tasmania, and the ACT can be used alongside your NDIS transport funding to stretch your budget further.
The Federal Court’s McGarrigle ruling confirmed that the NDIS must fully fund transport that is reasonable and necessary for a participant to access their supports.
You can request higher transport funding at a plan review by providing evidence such as receipts, travel logs, and a letter from your planner or therapist.

What Is NDIS Transport Funding?

The NDIS funds transport as a Core Support when you cannot use public transport without substantial difficulty because of your disability. The NDIS does not fund transport just because it is inconvenient. The difficulty must be directly related to your disability.

Transport funding under the NDIS has two distinct forms. The first is a transport allowance, paid directly into your NDIS plan as a flexible budget you can use for taxis, rideshares, community transport, or accessible vehicle hire. The second is activity-based transport, a separate line item used by providers when they transport you to a community participation activity as part of delivering that support.

These two types are often confused. Understanding the difference is important because they come from different parts of your plan, are claimed differently, and serve different purposes.

Who Is Eligible for Transport Funding?

To access transport funding in your NDIS plan, the NDIA needs to be satisfied that:

You have a permanent and significant disability.
Your disability means you cannot use public transport without substantial difficulty.
Transport funding is reasonable and necessary to help you pursue your goals or access your supports.

The NDIA will also take into account whether any state or territory taxi subsidy scheme is available to you. If a subsidy scheme covers some of your transport needs, the NDIA may fund only the gap that the scheme does not cover.

Importantly, NDIS transport funding is for the participant. It does not cover a carer, family member, or friend transporting you to an appointment unless that person is a registered transport provider.

The McGarrigle Ruling: Your Right to Full Funding

In 2017, the Federal Court heard the case of Liam McGarrigle, an autistic and intellectually disabled man from regional Victoria. The NDIA had funded only 75% of his annual taxi costs (approximately $15,850), arguing it was not obligated to fund the full amount.

The Federal Court ruled that the NDIS Act does not allow the NDIA to only partially fund a support that has been deemed reasonable and necessary. The Full Court dismissed the NDIA’s appeal, cementing this principle as settled law.

What this means for you: if the NDIS agrees that your transport costs are reasonable and necessary, the agency cannot simply cut the amount by an arbitrary percentage. You are entitled to funding that genuinely covers those costs.

Transport Funding Levels Explained

The transport allowance is split into three levels based on your activity and employment situation. Your planner will determine which level applies to you based on the information you provide about your life and goals.

Level	Annual Amount	Who It Applies To
Level 1	$1,784 per year	Participants who are not currently working, studying, or attending a day program but want to increase community access or do volunteer work
Level 2	$2,676 per year	Participants who are working or studying part-time (up to 15 hours per week) or attending day programs and other social, recreational, or leisure activities
Level 3	$3,456 per year	Participants who are working, looking for work, or studying at least 15 hours per week

These amounts are reviewed periodically by the NDIS. The figures above reflect the current rates as at 2026.

In exceptional circumstances, a participant may be eligible for transport funding above Level 3. This requires explicit approval from the NDIA and is uncommon. You would need to demonstrate through evidence that your costs genuinely exceed the Level 3 amount.

How the Transport Allowance Is Paid

The transport allowance sits within your Core Supports budget, specifically under Support Category 02 (Transport). Unlike most Core funding, transport allowance is a stated support, meaning it is quarantined for transport purposes only. You cannot flex this money across to other Core Support categories such as daily life or community participation.

The allowance is typically paid fortnightly into your nominated bank account or managed through your plan manager or the NDIS portal if you are agency-managed. You can use it to pay for:

Taxi or rideshare services (Uber, DiDi, 13Cabs, etc.)
Community transport services
Accessible vehicle hire
Private bus or shuttle services

You generally cannot use transport allowance funding for:

Fuel costs for your own car or a family member’s car
Vehicle purchase or repayments
Parking fines or infringements
Standard public transport fares (unless you have a clear need for occasional accessible taxi travel)
Paying an unregistered person to drive you (with some exceptions under self-management)

For a broader understanding of how Core Supports work and what flexible funding rules apply, see our NDIS Core Supports guide.

Activity-Based Transport Explained

Activity-based transport is a completely separate concept from the transport allowance. It is not a direct payment to you. Instead, it is a line item that your provider claims when they incur vehicle costs transporting you to or from a community participation activity as part of delivering that support.

What Is the Line Item?

The support item number is 04_590_0125_6_1, which sits under Support Category 04 (Assistance with Social, Economic and Community Participation). The price limit for this item is $1.00 per kilometre (or agreed non-labour cost). Remote and very remote loadings do not change the per-kilometre rate under this item.

Activity-based transport covers the non-labour costs a provider incurs when transporting you. This includes:

Fuel and vehicle running costs (calculated per kilometre)
Road tolls
Parking fees at the activity location

It does not include the worker’s time spent driving. The worker’s time while transporting you is claimed under the main community participation support item at the hourly rate for the relevant support type. So if a support worker spends 45 minutes driving you to a day program, that 45 minutes of worker time is claimed separately under the participation support, while the vehicle costs are claimed under 04_590_0125_6_1.

When Is Activity-Based Transport Used?

This line item applies when:

A provider or their worker is driving you to or from a community activity, social program, or day program as part of delivering that support.
The transport is directly connected to the activity being funded under Category 04.
The provider has incurred an actual vehicle cost.

It is not used when you are travelling independently by taxi or rideshare. That is what your transport allowance is for.

Why This Matters

Many participants are surprised to learn that their community participation supports include an additional transport cost on top of the hourly support rate. When you review invoices from your provider, you may see both a line item for the support hours and a separate line item for 04_590_0125_6_1. Both are legitimate, provided they reflect actual costs and actual travel.

If you are plan-managed, your plan manager will review these claims. If you are self-managed, you are responsible for checking that claims are accurate. See our NDIS Support Coordination Pricing Guide for information on who can help you manage and review your plan spending.

You can look up this line item and compare pricing across providers using the NDIS Price Guide tool.

Provider Travel: July 2025 Changes

One of the biggest changes to NDIS funding arrangements from 1 July 2025 affects how therapy providers claim for travel time. This is distinct from both the transport allowance and activity-based transport. Provider travel refers to the time a worker spends travelling to reach you at your home or in the community to deliver a support.

The Old Rule vs. the New Rule

Before 1 July 2025, therapy providers could claim their full hourly rate for the time spent travelling to a participant. A physiotherapist charging $183.99 per hour could claim $183.99 per hour for travel time (up to the applicable time limit cap).

From 1 July 2025, therapy providers can only claim 50% of the relevant price limit for travel time. Using the same example, a physiotherapist can now claim up to approximately $92.00 per hour for travel time.

This change applies to all therapy and allied health supports, including:

Physiotherapy
Occupational therapy
Speech pathology
Psychology
Dietetics
Early childhood early intervention (ECEI) therapy supports

Who Is Not Affected

This 50% travel cap applies only to therapy providers. Disability support workers providing personal care, community participation, or daily life supports are not affected by this change. Their travel time is still claimable under the existing rules for support worker travel, which operate differently from therapy travel.

Time Limits Still Apply

The maximum travel time a provider can claim has not changed. For metropolitan areas (MMM1 to MMM3), the cap is 30 minutes of travel time per participant visit. For regional and rural areas (MMM4 to MMM5), the cap is 60 minutes. Remote (MMM6) and very remote (MMM7) areas are not subject to time caps, and the existing 40% and 50% remote loadings remain in place.

Non-Labour Travel Costs Are Unchanged

All providers, including therapy providers, can still claim the actual non-labour costs of travel. This includes road tolls, parking fees, and vehicle running costs (such as fuel). These can be negotiated with you as a reasonable contribution, but they are capped at the actual cost incurred.

What This Means for Participants

If you receive therapy services at home or in the community, you may find that some providers introduce or increase gap fees to cover the gap created by the reduced travel claiming rate. Providers are required to tell you in advance if they plan to charge gap fees. If your therapist is introducing a gap fee that your plan does not cover, speak to your support coordinator or plan manager about your options.

For more detail on how pricing arrangements work, see the NDIS Pricing Arrangements on the NDIS website.

State Taxi Subsidy Schemes

Every state and territory in Australia has some form of subsidised taxi scheme for people with disabilities. These schemes are run by state and territory governments, not the NDIS, so they are separate from your NDIS funding. However, the NDIS takes them into account when determining your transport allowance, meaning the expectation is that you use them where available.

The good news: you can use your taxi subsidy scheme alongside your NDIS transport funding. Many participants do not realise this, effectively leaving money on the table.

State/Territory	Scheme Name	Subsidy	Cap Per Trip
NSW	Taxi Transport Subsidy Scheme (TTSS)	50% of fare	$60 per trip
Victoria	Multi-Purpose Taxi Program (MPTP)	50% of fare	$60 per trip (annual cap $2,180)
Queensland	Taxi Subsidy Scheme (TSS)	50% of fare	$30 per trip
South Australia	SA Transport Subsidy Scheme (SATSS)	50% (wheelchair: 75%)	$20 ($30 for wheelchair users)
Western Australia	Taxi User Subsidy Scheme (TUSS)	50% of fare	Check WA Transport website
Tasmania	Taxi Subsidy Scheme (TSS)	50% of fare	Check Service Tasmania
ACT	Taxi Subsidy Scheme	Subsidised rate	Check Access Canberra
NT	NT Taxi Subsidy Scheme (NTTS)	50% of fare	Check NT Government

Eligibility for each scheme varies. Generally, you need to have a permanent disability that prevents you from using public transport. Being an NDIS participant is often sufficient evidence of eligibility, but some schemes have their own assessment process.

For NDIS participants in New South Wales, the TTSS issues docket books for use with approved taxi operators. Blue docket books replaced the older pink docket books from October 2025. If you have old docket books from before that date, check with Transport for NSW about their validity.

How to Apply

For most schemes, you apply directly through the relevant state or territory transport authority. Your local area coordinator or support coordinator can help you with the application. It is worth applying even if you are not sure you qualify, as the savings can be significant for regular taxi users.

Using Rideshare Apps

Some state schemes now accept rideshare services like Uber. Check your local scheme’s rules as this varies by state and changes periodically. The NDIS transport allowance can generally be used for rideshare services regardless of whether your state scheme covers them.

What Is and Is Not Covered

One of the most common sources of confusion for participants is understanding exactly what the NDIS will and will not fund for transport. This table summarises the key inclusions and exclusions.

Transport Type	Covered by NDIS?	Notes
Taxis to therapy appointments	Yes	Use transport allowance
Rideshare (Uber, DiDi)	Yes	Use transport allowance
Community transport services	Yes	Use transport allowance
Accessible vehicle hire	Yes	Use transport allowance
Provider driving you to a day program	Yes	Via activity-based transport (04_590_0125_6_1)
Fuel for your own car	No	Not covered as a general rule
Fuel reimbursement to family member	Generally no	Unless they are a registered provider
Car purchase or lease repayments	No	Not covered
Vehicle modifications (for driving)	Sometimes	Falls under Capital Supports, separate approval needed
Public transport fares	Generally no	Not covered unless specific need is documented
Parking fines	No	Not covered under any circumstances
Standard annual rego or insurance	No	Not covered
Flights for medical tourism or holidays	No	Not covered
Taxi to the airport for a holiday	Generally no	Not directly linked to disability support
Transport to NDIS supports and activities	Yes	Core purpose of transport allowance
Transport to medical appointments related to disability	Yes	Use transport allowance
Transport to work or study	Yes	Level 2 or Level 3 depending on hours

Getting More Transport Funding

If your current transport funding level does not meet your actual needs, you can request a higher level of funding or additional transport dollars at your next plan review. Here is how to build a strong case.

Document Your Actual Transport Costs

Before your plan review, keep a detailed record of every transport trip you take that is related to your disability. Include:

The date and purpose of the trip
The transport type used (taxi, rideshare, community transport)
The cost of each trip
Any subsidy you used from a state taxi scheme

Receipts and bank statements are your strongest evidence. The more data you have, the easier it is for your planner to justify a higher transport budget.

Get Supporting Letters

A letter from your treating therapist, GP, or specialist explaining why you cannot use public transport and how your current transport funding affects your ability to access supports can carry significant weight in a plan review. Similarly, a letter from your support coordinator or plan manager outlining patterns of transport spending can help.

For more guidance on how plan reviews work and how to prepare, see our guide on requesting NDIS plan reviews.

Reference Your Goals

Transport funding is more likely to be increased when it is clearly linked to the goals in your plan. If you have a goal to get a job, increase community participation, or attend a specific therapy program, and transport is what is preventing you from achieving that goal, make that connection explicit. See our NDIS goals guide for help writing goals that support your funding case.

If You Are Spending Above Your Allowance

If you have already been consistently spending more than your current transport allowance, this is one of the strongest arguments for a higher level. Bring receipts and records showing the shortfall between your allowance and your actual costs.

Exceptional Circumstances

In rare cases, participants can request transport funding above the Level 3 amount. This requires explicit NDIA approval and clear evidence that your transport needs are exceptional compared to most NDIS participants. Examples might include someone living in a rural area with no public transport, requiring specialist transport because of complex physical needs, or attending multiple disability-related services each week.

Transport and Plan Management

How you manage your NDIS plan affects how your transport funding is accessed and claimed.

Agency-Managed Transport

If your plan is agency-managed, the NDIA pays your providers directly from your plan funds. Your transport allowance is typically paid to you fortnightly as a direct bank deposit. Providers claim activity-based transport directly through the NDIS portal.

Plan-Managed Transport

If you are plan-managed, your plan manager handles payments to providers on your behalf. You can choose from registered and unregistered providers, giving you more flexibility in who provides your transport services. Your plan manager reviews invoices from providers and checks that claims against your transport budget are accurate.

Self-Managed Transport

Self-managed participants have the most flexibility. You can pay for transport from any provider, registered or not, as long as the support is reasonable and necessary and you keep proper records. You are responsible for verifying that invoices are correct and that spending aligns with your plan goals.

For a comparison of management types and how they affect your ability to use different providers, our NDIS Core Supports guide has a detailed breakdown.

Transport for Specific Situations

Transport to Medical Appointments

Transport to medical appointments related to your disability is covered by the NDIS transport allowance. Transport to a GP for a general illness unrelated to your disability is generally not covered, as that is considered a standard cost that everyone faces.

Transport for Children

For children with disabilities, transport funding is handled somewhat differently. The NDIS recognises that families naturally transport their children to school, therapy, and activities. Transport funding for children tends to focus on situations where the disability creates costs above and beyond what a family would ordinarily incur.

Transport to School

Transport to school for children with disabilities is primarily the responsibility of state and territory governments through their school transport programs, not the NDIS. However, in some circumstances where no suitable government transport is available and the child’s disability creates a genuine need, the NDIS may consider funding a contribution.

Rural and Remote Participants

Participants in rural and remote areas often face significantly higher transport costs because of distance and the absence of public transport options. The NDIS applies remote (MMM6: 40% loading) and very remote (MMM7: 50% loading) price limits to provider travel, which helps account for higher costs in those areas. If you live in a remote area and your transport costs are substantially higher than average, this should be documented clearly in your plan review.

Frequently Asked Questions

Can I use my NDIS transport funding for Uber?

Yes. Rideshare services such as Uber and DiDi are accepted forms of transport under the NDIS transport allowance. Keep receipts or download trip histories from the app as evidence of your spending.

Can a family member be paid to drive me?

Generally no, unless the family member is a registered NDIS provider. In some self-managed plan situations, informal or unregistered support can be used, but this needs to be discussed with the NDIA and is subject to the rule that it is reasonable and necessary. Paying family members to drive participants is one of the most scrutinised areas of NDIS spending.

My transport allowance runs out before the end of my plan year. What do I do?

If you regularly exhaust your transport allowance before your plan period ends, start keeping detailed records now for your next plan review. Contact your local area coordinator or support coordinator to discuss whether a plan review is warranted before your scheduled review date.

Does the transport allowance cover tolls and parking?

Tolls and parking are generally considered part of the transport cost and can be included. If you are travelling by taxi, the tolls are included in the fare. If you are claiming reimbursement for someone driving you, tolls and parking at your destination may be claimable.

What is the difference between the transport allowance and activity-based transport?

The transport allowance is money paid to you (or managed on your behalf) to cover your independent travel costs such as taxis and rideshare. Activity-based transport (04_590_0125_6_1) is a separate line item claimed by a provider for the vehicle costs they incur when transporting you to a community participation activity. Both can appear in the same plan.

Can I use both the NDIS transport allowance and a state taxi subsidy scheme?

Yes. These are separate programs and you can use both. Many participants combine their state taxi scheme dockets with their NDIS transport allowance to cover the portion of the fare the subsidy does not cover.

What changed for providers from July 2025?

From 1 July 2025, therapy providers can only claim 50% of their hourly rate for travel time spent travelling to a participant. Support workers are not affected. Non-labour travel costs (fuel, tolls, parking) are still fully claimable by all providers.

Can I get transport funding if I own a car?

Owning a car does not automatically disqualify you from transport funding. If your disability means you cannot drive, or that driving causes substantial difficulty, or if the vehicle requires modification, transport funding may still be appropriate. Vehicle modifications fall under Capital Supports and are handled separately from the transport allowance.

What does the McGarrigle ruling mean for my transport funding?

The ruling confirmed that the NDIS cannot partially fund a transport support that has been assessed as reasonable and necessary. If your planner agrees transport is reasonable and necessary, you should be funded for the full cost, not a reduced percentage. This is particularly relevant if the NDIA has offered you a lower amount than your documented costs.

Key Resources

NDIS Transport Funding - Official NDIS guidance on transport funding levels and eligibility
NDIS Pricing Arrangements - Full pricing rules including provider travel and activity-based transport
Transport for NSW - Taxi Transport Subsidy Scheme - NSW TTSS applications and information
Queensland Taxi Subsidy Scheme - Queensland TSS details and eligibility

For related NDIS planning topics, see our guides on NDIS Core Supports, NDIS Goals and Smart Planning, and the NDIS Support Coordination Pricing Guide.

You can also explore all NDIS support line items, including transport codes, using the NDIS Price Guide tool and find out what your plan might look like for transport using the transport services page.

How MD Home Care Can Help

Transport is often one of the first conversations we have with new participants. Getting the right level of transport funding in your plan, understanding what you can and cannot claim, and making sure you are not missing out on available state subsidies can make a real difference to your daily independence.

At MD Home Care, our support coordinators can help you prepare for a plan review, build a case for higher transport funding, and connect you with transport providers who suit your needs and location. We work with participants across Australia, including those in regional and rural areas where transport challenges are often more acute.

If you are unsure whether your current transport funding is adequate, or you would like a second opinion on how to use your transport budget, reach out to our team. We will take the time to understand your situation and give you clear, practical advice.

Contact MD Home Care to speak with a coordinator about your transport funding options.

This guide is for general information purposes only. NDIS funding decisions are made on an individual basis. Rates and rules are current as at March 2026 but may change. Always check the NDIS website or speak with your planner or support coordinator for advice specific to your situation.