Understanding the New NDIS Funding Periods

Key Points:

• The total plan budget is now divided into smaller, time-based Funding Periods.
• This change is designed to help participants pace their spending and act as a built-in budgeting safeguard.
• Funds not spent in a particular period automatically roll over and are added to the next period’s released amount.
• You can only spend funds that have been officially released into the current funding period; you cannot borrow from future allocations.

Summary:

As of mid-2025, NDIS plans are moving away from a single annual lump sum release. Instead, your budget is released in periodic instalments to improve budgeting and prevent early overspending. The great news is that any unspent funds roll forward into the next period; however, you are strictly limited to spending only the funds that have been released in the current period, meaning you cannot access money allocated for future time periods.

Outline:

1. What are the New NDIS Funding Periods?
2. How Are NDIS Plans Funded Now Instead of All at Once?
3. Why Did the NDIS Implement Funding Periods?
4. What Happens to Unused Funds at the End of a Funding Period? (The Good News)
5. Can You Use Future NDIS Funds Before They Are Released? (The Important Part)
6. How Does the NDIS Fund High-Cost Items?
7. Summary for Your To-Do List
8. How AIIM Choices Can Support You Through New NDIS Funding Periods

What are the New NDIS Funding Periods?

Change is the only constant with the NDIS, isn’t it? Just when you feel like you have your head around the system, a new rule pops up. If you have received a new plan or had your plan reassessed recently (specifically from mid-2025 onwards), you might have noticed a significant shift in how your funding is released.

We are talking about the NDIS new funding periods.

For years, most of us were used to seeing our NDIS funding as one big annual figure. You received your budget for the year, and it was up to you (and your plan manager) to pace it out, so you don’t run out of funding for essentials like therapies before the end of your plan.

That system is changing. Here is everything you need to know about the new NDIS funding periods and how to manage them without stress.

How Are NDIS Plans Funded Now Instead of All at Once?

The biggest change is that for new and reassessed plans, the NDIS is no longer releasing the full year’s budget on day one. Instead, your total funding is being divided into smaller chunks of time, officially called “funding periods.“

For most participants, these periods are seen in your plan.

Think of it less like a yearly salary and more like a regular allowance. On the first day of your plan, you get the funding for the first three months. Once that period ends, the next amount of funding “unlocks” or drops into your plan.

Why Did the NDIS Implement Funding Periods?

The NDIS has introduced this to help with budgeting. One of the common issues in the past was participants accidentally spending too much early in the year, leaving them short of essential supports later.

By releasing funds in stages, the system acts as a natural safety net. It helps ensure your budget pace matches the calendar, so you are still covered for support in month twelve.

What Happens to Unused Funds at the End of a Funding Period? (The Good News)

A common worry is: “What if I don’t spend all my money in the first three months? Do I lose it?”

The answer is no. You do not lose it.

If you have a quiet few months and don’t use all your allocated funding for that period, the leftover amount rolls over automatically into the next period. It remains available to you for the duration of your plan. You don’t need to rush to spend it just because the time frame is ending.

Can You Use Future NDIS Funds Before They Are Released? (The Important Part)

You can only access your funds in the current time period.

This is the critical rule to remember: You can only spend funds that have been released.

If you have a big expense coming up in December, but your next funding drop isn’t until January, you cannot “borrow” from that future January amount. The system simply won’t let the payment go through because those funds technically don’t exist in your plan yet.

This means if you are planning a large intensive block of therapy or a holiday program, you need to check your funding release dates first to make sure the money will be sitting there when the invoice arrives.

How Does the NDIS Fund High-Cost Items?

You might be wondering about big ticket items, like assistive technology or home modifications. Don’t worry, the NDIS usually treats these differently. Funding for specific, high-cost capital items is generally still released fully when approved, so you aren’t waiting for instalments.

Summary for Your To-Do List

• Check your plan: Look for the specific dates of your funding periods.
• Track your spending: Keep an eye on your balance as you approach the end of a period.
• Don’t panic about leftovers: Unspent money travels with you to the next allocated period.
• Plan ahead: Ensure you have enough “released” funds before booking expensive services or supports.

This new system might take a moment to get used to, but it effectively puts a “pacing guide” on your plan to help ensure you are supported all year round.

How AIIM Choices Can Support You Through New NDIS Funding Periods

Understanding new NDIS funding periods can feel confusing, especially with ongoing NDIS updates. This is where experienced NDIS plan managers can make a real difference.

At AIIM Choices, our NDIS plan management services are designed to help you understand how your funding is released. We keep an eye on invoice timing, funding availability, and changes that could affect your plan.

If you have recently received a new plan, are preparing for an NDIS plan review, or simply want clearer guidance around new funding rules, our team is here to help.

Get in touch with AIIM Choices today or sign up for our plan management service to receive tailored support and feel confident making the most of your NDIS funding.