Breaking Down the Latest Changes to NDIS Funding – (May 2025 Update)

The National Disability Insurance Scheme (NDIS) has introduced significant changes to how NDIS participants access their funding, marking the most substantial shift in plan management since the scheme’s inception. Starting from 19 May 2025, these changes will fundamentally alter how NDIS participants budget and access their support. Here’s everything you need to know about these NDIS funding changes and how they might impact your journey.

What Are the Major Changes to NDIS Funding?

Introduction of Changes to NDIS Funding Periods

The most significant update in the May 2025 changes to NDIS funding is the shift to a new funding period framework — a system that controls when participants can access their plan funds. Unlike the previous system where all funding was available at plan commencement, funds are now released in structured intervals. This marks a key reform in the changes to NDIS legislation, impacting both participants and providers.

Key Features:

Quarterly Funding Access: Most participants now receive their plan funds in 3-month intervals (also referred to as quarterly funding periods). Certain categories, such as Supported Independent Living (SIL), may follow monthly funding periods based on service needs and plan structure.
Total Plan Value Remains Unchanged: There is no reduction to your overall amount of funding approved in the plan. The key change is in the components and funding periods, meaning how that total funding is distributed across time.
Rollover of Unused Funds Within the Same Plan: If a participant doesn’t use all their budget within one funding period, the unused funds roll over to the next quarter within that same plan. This ensures that short-term underuse doesn’t lead to loss of funds within an active plan.
No Carryover to a New Plan: Once the current plan expires, any remaining unspent funds are not carried forward to the next plan. Participants are encouraged to work closely with their providers and plan managers to ensure optimal use of supports before plan expiry.
Managing Shortfalls and Emergency Needs: If funds run out before the next funding period begins, participants cannot access additional funds until the new period starts. However, participants can contact the NDIA or their plan manager to discuss options or request plan reviews if their circumstances change.

How the National Disability Insurance Scheme Funding Periods Work in Practice

Under the new framework introduced by the NDIS, participants with a 12-month plan will see their total funding amount divided into smaller funding periods in line with quarterly intervals. For example:

Total Plan Value: $16,000 funded by the NDIS for capacity building support, this amount will be split into four 3-month periods.
Quarterly Release: Each quarter, $4,000 becomes available, allowing participants to access and manage their supports in manageable chunks throughout the year.
Access Control: Funds become available at the start of each period

This structure particularly affects the funding components related to capacity building, which includes essential allied therapy services such as occupational therapy, speech therapy, and physiotherapy. By breaking down the amount of funding periods this way, participants can better pace their developmental supports and work closely with providers to optimise their plan throughout the year.

Impact on Different NDIS Funding Categories

Support Category	Funding Period Structure
Core Supports and Daily Living	Typically quarterly (every 3 months)
Capacity Building Supports	Quarterly, affecting allied therapies and programs
Supported Independent Living (SIL)	May have monthly funding periods to align with service delivery schedules
One-Off High-Cost Items (Assistive Technology, Home Modifications)	Usually funded upfront at plan commencement to avoid delays

How Changes Affect Specific Disability Support

NDIS Funding for Autism

Recent changes to NDIS funding are reshaping how participants access supports for autism, especially around intensive early intervention programs and behavioural therapies. With updated funding periods and a push for more flexible plan durations, families and providers must carefully coordinate a participant’s plan to ensure uninterrupted access to essential services.

Plans will include more adaptive structures, but require proactive scheduling to prevent gaps in support during reassessment windows.
The transition to flexible funding periods can challenge consistent access unless the support needs assessment is thorough and aligned with the child’s therapeutic goals.
Participants are encouraged to work closely with planners to maintain access to all their funding across plan transitions, especially when services involve multidisciplinary teams.

NDIS Funding for ADHD

For those navigating NDIS funding for ADHD, services like coaching, psychology, and executive function therapy must also adapt to the new funding structure. With the realignment of categories like Capacity Building, the emphasis is on structured delivery and forward-planned service blocks.

Participants and families should ensure their disability support needs are well-documented to justify ongoing interventions.
ADHD-related supports now require better coordination between allied health providers to maintain consistent use of funding across multiple plan periods.
Where plans were previously renewed annually, they may now shift to outcome-based timeframes, making ongoing engagement with providers and planners essential.

What This Means for NDIS Providers

The May 2025 changes to NDIS funding don’t just affect participants, they also present a range of operational and financial adjustments for NDIS service providers, including those in allied health services. Understanding the new rules and preparing early is essential for continued service delivery and compliance.

1. Aligning with New Funding Periods and Service Agreements

With the introduction of more flexible funding periods, providers must review and update service agreements to reflect participants’ evolving plans and preferences. Agreements should now clearly outline the frequency, duration, and pricing of services in accordance with the updated claims and payments framework.

2. Monitoring Funding Availability

Providers need to be proactive in checking the funding in a participant’s plan before scheduling services. This helps avoid exceeding budgets and reduces the risk of delayed payments. As access to the NDIS becomes more personalised, each participant’s plan may have a different cycle and structure.

3. Adapting Session Scheduling and Delivery

Service providers must be mindful of when funding becomes available. For example, a plan-managed client might receive funds on a rolling monthly basis rather than all upfront. This means scheduling therapy sessions around the availability of funds to ensure continuity of care and reduce cancellations.

4. Managing Cash Flow and Claims

The claims and payments framework has been refined to support timely and transparent reimbursements. Providers should:

Submit claims promptly.
Understand how to claim under different plan management types (self, plan, agency).
Prepare for staggered payments that may impact short-term cash flow.

5. Staying Compliant with Legislative Changes

The NDIS has signalled changes to the legislation that strengthen participant rights and tighten provider accountability. Providers must stay informed on compliance standards, pricing caps, and documentation requirements. Regularly checking updates on the NDIS website and engaging in training or webinars is highly recommended.

Understanding NDIS Eligibility and Application Process

Eligibility criteria remain unchanged despite the funding structure modifications. Participants must still meet age, residency, disability impact, and permanency requirements.

New and reassessed plans from 19 May 2025 will include funding periods from the outset. The application process remains the same, but approved plans will reflect the staged funding access.

Emergency Situations and How to Access the NDIS

Emergency funding protocols may be affected by funding periods. Participants should:

Understand emergency funding procedures under the new system.
Maintain communication with plan managers.
Request plan reviews promptly if circumstances change significantly.
Be aware that interim funding options may be limited until the next funding period begins.

NDIS Price Guidelines and Budget Management

While NDIS price guidelines remain consistent, managing your budget becomes more critical with funding periods.

Participants should:

Monitor spending carefully within each funding period.
Understand rollover provisions within the same plan.
Plan ahead for intensive therapy blocks that may span multiple periods.
Coordinate with providers on pricing and scheduling to avoid service disruptions.

Practical Tips for Managing Funding Periods

Track Spending: Regularly monitor fund usage throughout each period.
Plan Ahead: Coordinate intensive services across multiple funding periods.
Communicate: Maintain open contact with service providers about funding availability.
Document: Keep records of spending and remaining balances.
Work with Your Support Team: Plan managers and support coordinators can assist with monitoring and scheduling to optimize fund use.

Timeline and Implementation

Start Date: 19 May 2025
Application: Applies to new and reassessed plans only.
Existing Plans: No immediate impact; changes occur at plan review or reassessment.
Visibility: Funding periods and details will be visible in NDIS plan documents, participant portals, the myNDIS app, and provider statements.

Potential Challenges and Solutions

Reduced Flexibility: Some participants may find the structured funding periods limiting for intensive or combined therapies.
Service Interruptions: Risk of therapy disruption if funding is exhausted before the next period.
Provider Adjustments: Providers need to adapt delivery models and billing practices.

Recommended Solutions:

Early planning and discussion during plan reviews.
Close coordination between participants, providers, and plan managers.
Regular budget monitoring.
Prompt plan reviews when circumstances change.

Clarification on What NDIS Can Fund

The NDIS supports list outlines what is deemed reasonable and necessary under the scheme. Participants, nominees, and plan managers must refer to this list of NDIS supports when making claims or purchases using plan budgets.

Examples of funded supports: occupational therapy, speech therapy, mobility aids, assistive technology, and certain transport arrangements.
Non-funded examples: gym memberships for general fitness (unless clinically justified), food, or general household bills.

Using NDIS funds for non-eligible supports may result in the NDIA contacting participants for clarification. In some cases, participants may be asked to repay the cost of incorrectly used funds. The updated NDIS rules aim to protect both participants and the scheme’s sustainability.

Getting NDIS Support During the Transition

The NDIA is offering structured support throughout this changeover. Free NDIA information sessions (online and in-person) explaining the new plan formats. Support coordinators are available to guide participants through the transition and help them explore the most suitable plan management type. Plan managers can assist in interpreting budget categories and offer guidance based on the NDIS supports list. NDIS providers may offer consultations to discuss how their services align with the updated new framework plans.

Participants now have greater flexibility in choosing how their plan is managed.

Self-managed: You take charge of hiring providers and paying invoices directly.
Plan-managed: A third party handles the financials, offering more support and less admin burden.
NDIA-managed (agency): NDIA pays registered providers directly; limited flexibility.

Manage Your NDIS Funding Through the Latest Changes

The introduction of funding periods represents the NDIA’s effort to improve budget management and reduce the risk of participants exhausting funds prematurely. While these changes require adjustment, understanding the new system and working closely with your support team will help ensure consistent access to supports.

Whether you are accessing NDIS funding for autism, ADHD, or other supports, proactive planning, regular communication, and awareness of funding rules are key to a smooth transition.

For the most current information and personalized guidance, consult your NDIA planner, plan manager, or the official NDIS website.

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