New Funding Periods in NDIS Plans: What You Need to Know

To help NDIS participants better manage their budgets and funding, the NDIA is introducing changes to how funds are made available in NDIS plans. These changes are being gradually rolled out from 19 May 2025 and aim to support participants with more flexible, manageable access to their funding.

What Do NDIS Funding Periods Mean?

Traditionally, most participants received their full funding upfront at the beginning of their plan, typically designed to last 12 months. While this gave complete access, many participants shared that managing a year’s worth of funding all at once can be challenging—leading to overspending or running out of funds early.

To address this, the NDIA is introducing shorter funding periods—most commonly set at three months—for new and reassessed plans.

Why the Change?

The shift to shorter funding periods is designed to:

• Support more consistent spending across the life of the plan.

• Reduce the risk of overspending or exhausting funds too early.

• Increase flexibility while ensuring participants have regular access to their supports.

It’s important to note that the total amount of funding in your plan won’t change. The only difference is when and how the funding becomes available—split into smaller, more manageable portions throughout the plan period.

How NDIS Participants are Impacted

This change:

• Applies only to new or reassessed plans from 19 May 2025 onwards.

• Will not impact existing plans until a review or reassessment occurs.

• Will involve a discussion with participants to understand their individual circumstances and preferences.

A Bit of Background

Funding periods were officially introduced into the NDIS legislation in October 2024, with 12-month funding periods being the default for new and reassessed plans since then. This latest update builds on that by offering more tailored, shorter funding intervals.

The NDIA will determine the length and frequency of funding periods based on several factors, including:

• Participant preferences

• Risks of overspending

• Potential for harm, fraud, or financial exploitation

What Is a NDIS Funding Period?

A funding period is the time frame during which a portion of a participant’s NDIS funding is made available. It can apply to the total funding or just specific components of a plan.

If you have any questions about how this might affect you or someone you support, please reach out to the Maple Community Services team. We’re here to help you navigate your plan and make the most of your NDIS supports.