NDIS Funding Period Changes in 2025: What You Need to Know

To improve how participants manage their NDIS budgets, the National Disability Insurance Agency (NDIA) is introducing changes to the way funding is distributed, for new and reassessed plans. Starting 19 May 2025, these updates aim to support more consistent and flexible use of NDIS funding throughout the plan duration.

If you or someone you support is navigating the NDIS, understanding these updates is key to making informed decisions and getting the most from your plan.

What Are NDIS Funding Periods?

An NDIS funding period refers to the specific timeframe in which a set portion of your funding is made available. Instead of receiving your full funding allocation upfront for a 12-month plan, funding will now be delivered in smaller, more manageable instalments. Typically, you will receive your funding instalment every three months.

This adjustment is designed to help participants stay on track with their budgets and reduce the risks of overspending or running out of funds too soon.

Why Are These Changes Being Introduced?

The NDIA is making these adjustments in response to widespread feedback from participants, families, providers, and financial advocates.

Common concerns with the previous model included:

• Overspending early in the plan period, leaving participants without supports later in the year.

• Underspending, due to anxiety or confusion about how and when to use funds.

• Financial pressure on those managing complex plans with little support.

By introducing shorter funding periods, the NDIA aims to:

• Support better budgeting habits and more consistent service delivery.

• Reduce financial stress by simplifying cash flow across the life of the plan.

• Protect participants from potential financial misuse or accidental overspending.

• Enhance oversight, especially for participants with complex needs or limited informal support.

How Will This Impact NDIS Participants?

These changes will impact new and reassessed NDIS plans from 19 May 2025 onward. Here’s how it may affect you:

• If you’re starting a new plan or undergoing a reassessment, your funding may be split into multiple periods (e.g., four funding releases across a 12-month plan).

• If you’re on an existing plan, these changes won’t affect you until your next scheduled plan review or reassessment.

• Each funding period will be tailored based on individual needs, preferences, and financial history.

Importantly, the total value of your plan will not be reduced. You’re still entitled to the same level of support—just delivered in a way that’s easier to manage.

What Determines Your Funding Period Schedule?

The NDIA will assess a variety of factors before deciding how often your funding should be released. These include:

• Your personal budgeting preferences

• Past funding usage and whether your funds have been used appropriately or consistently

• The presence of risk factors, such as potential for financial exploitation or support gaps

• Complexity of supports, such as high-intensity care or multiple providers

• Your capacity for self-management, or whether you use a plan manager or support coordinator

If you’re unsure or concerned, your Support Coordinator or Plan Manager can help communicate your preferences to the NDIA during plan development.

A Brief Background on Funding Periods

While this rollout may feel new, funding periods were formally introduced into NDIS legislation in October 2024. At that stage, 12-month periods were considered standard, and funding was generally released in full at the start of the plan.

This next phase—offering shorter, tailored periods—is part of the NDIA’s broader commitment to making the NDIS easier to navigate, more sustainable, and better aligned with the day-to-day realities of participants’ lives.

How Can Participants and Carers Prepare?

If you’re preparing for a new plan or reassessment, here are a few steps you can take:

• • Speak with your support coordinator or plan manager to understand how this may affect your specific plan.

  • Review your past spending patterns to identify whether a shorter funding cycle might be beneficial.

  • Be prepared to discuss your preferences during your next planning meeting or review.

  • Ask questions and don’t be afraid to request flexibility if your circumstances require it.

Achora Is Here To Help

At Achora, we understand how overwhelming changes to the NDIS can feel. Especially when it comes to something as important as funding. Whether you’re a participant, family member, or provider, our team is here to help you navigate your plan with confidence.

We’ll support you in:

• Understanding how these funding periods apply to your situation

• Preparing for plan meetings and reassessments

• Maximising the value of your NDIS supports

• Reducing the stress of budgeting and service planning

📞 Contact Achora today to speak with a friendly plan manager or support coordinator who understands your needs and can provide guidance tailored to you.