From Monday 19 May 2025, major changes were introduced to how NDIS funds are released for new and reassessed NDIS plans.

These changes, introduced under Section 33 of the NDIS Act, will affect how and when participants with new or reassessed plans can access their plan budgets.

Instead of the full budget being available for claiming upfront, participants will now have their funding released for claiming in smaller instalments over time, called funding periods.

Big changes like this should come with clear, accessible, and timely communication. But so far, many participants and providers say they are still in the dark. This post explains what’s changing, why advocates are concerned, and what you can do.

How funding periods work

Release timing:

• Most supports: every three months or even shorter if the participant is perceived to be “high risk”.
• Home & Living supports: monthly.
• Capital budget (Assistive technology and home modifications): available in full at the start of the plan.

The above funding periods are the default settings in PACE, the NDIA’s computer system. If you need longer funding periods, or a lump sum available at the start for therapist reports, Short or Mid Term Accommodation etc, it’s really important to talk about this with the NDIS planner during your planning or reassessment meeting. 

Start date: Funding periods begin from your plan start date, not the start of the calendar month.

Leftover funds: Unused funds roll into the next period but do not carry over to a new plan.

Visibility: You will be able to see your funding periods in the NDIS participant portal. Your plan manager and approved support coordinator (if listed) can also view them. Other providers cannot.

Claiming rules: Claims should align with your funding period. If a claim is for services across two different funding periods, you can lodge the claim in the second funding period, as long as there is enough funds available.  The claim doesn’t need to be split.

Over-budget claims: If you try to lodge a claim for more than is available in your funding period, it won’t be paid. Providers will need to check there’s enough funding before delivering supports.

If you need more funding than is available in your funding period, you’ll need to ask for a plan variation or a S48 change of circumstances to have more funding released for claiming. Participants can ask for changes to their funding periods through a plan change request if their needs change. If support needs are stable but funds are needed sooner, a plan variation can front-load funding into the current period without increasing the overall budget.  Note – you will need evidence for why you are asking for extra funds to be made available.

Why the NDIA introduced funding periods

According to the NDIA, these changes are designed to:

• Spread funding more evenly across the life of a plan
• Avoid overspending
• Support scheme sustainability through closer oversight

By releasing funds gradually, the NDIA will be able to prevent participants from asking for more funding as a result of running out of funds before the plan ends.

Why disability advocates are concerned

While the NDIA’s intentions are reasonable, to control the cost of the NDIS, the impacts on participants, especially those with complex or changing support needs, could be serious.

Disability advocates, disability organisations and self managers have raised serious concerns about the real-world impacts of these changes.

Loss of flexibility: If a participant needs more support due to illness or the unavailability of informal supports, they may not be able to access enough funding during that period. This is the case even if their total plan budget allows it. Life can be unpredictable at times and it’s important that our NDIS budgets reflect that.

Risk of service disruption: Claims that exceed the available budget for the current period will be rejected. This could delay or interrupt essential supports.

Increased administrative burden: Participants, particularly those who self manage, will face more complexity. Reduced choice and control: This shift limits participants’ ability to respond to life circumstances. It will be harder to access Functional Capacity Assessments and other expensive reports to provide the evidence to NDIA of participants’ needs.  Many view it as a step away from the original vision of the NDIS, a scheme based on trust, autonomy, and flexibility.

Another major concern is the lack of accessible, timely information provided to participants. Many participants are unaware that these changes are coming. Those who do know are struggling to find clear guidance about how the new funding periods will work in practice.

New information about funding periods is now available on the NDIS website, including updated frequently asked questions.

What you can do

• Share this article to raise awareness
• Discuss this issue with your planner at your plan reassessment and be clear about your needs
• Speak with your support coordinator or plan manager if you have one
• Request a variation or reassessment if your needs change
• Tell the NDIA and Government how this is affecting you

Final thoughts

This change will affect how thousands of NDIS participants manage our supports, yet information has been limited and confusing. We need urgent investment in communication, education and transition support for both participants and providers.

People must be prepared to navigate the new rules, make informed decisions, and avoid service disruptions.

This is one of the most significant structural changes to the NDIS since the scheme began. For a scheme built on choice and control, this change raises concerns about the gradual move away from this key principle.

We’re hearing more and more concerns from the community about this, and we always want to hear about your experiences. If you’ve got something to say, a story to tell, or just want to share what’s been happening for you or someone you know, please get in touch. 

Every Australian Counts are currently inviting people to contribute opinion pieces. If that’s something you’re interested in, send us your pitch. You can find the Writer’s Guide on the EAC website, which has a few tips and details on what to include.