How does NDIS funding work? Your 2026 guide

Getting approved for the National Disability Insurance Scheme (NDIS) is a big moment. However, then come the questions.

• What do all these budget categories mean?

• What can you actually spend the money on?

And why does it feel like you need a dictionary just to get started?

Feeling overwhelmed? You're not alone.

The NDIS funding structure trips up a lot of people, participants and families alike. And now with significant reforms underway, understanding how your funding works has never been more important. In April 2026, the Australian government announced reforms to the NDIS that are expected to result in fewer participants over the coming decade, including stricter eligibility criteria and a focus on sustainability. This guide explains clearly how NDIS funding works, so you can focus on what matters: getting the right support.

What is an NDIS plan?

When you're approved for the NDIS, the National Disability Insurance Agency (NDIA) creates a personalised plan that outlines your goals, the supports you'll receive funding for, and specific plan budgets tailored to your needs.

Your plan is based on your individual disability-related needs and how your disability affects your daily life, not just your diagnosis. The NDIS also focuses on building skills and independence over time, so you can rely less on others and achieve more of what matters to you.

Plans are reviewed regularly, usually annually. A plan reassessment may also happen if your needs or circumstances change significantly.

NDIS eligibility and assessment

Understanding who can access the NDIS is the first step to getting the support you need. The scheme is designed for people with a permanent and significant disability, helping them achieve their goals and participate fully in everyday life.

Recent eligibility changes have introduced stricter criteria, including a requirement that individuals explore all appropriate treatment options before being deemed eligible for NDIS support.

To be eligible, you need to:

• Be aged between 7 and 65

• Live in Australia as a citizen, permanent resident, or Protected Special Category Visa holder

• Have a permanent intellectual, cognitive, neurological, sensory, physical or psychosocial impairment that significantly reduces your ability to complete day-to-day tasks without support

For children under seven showing developmental delays, the Early Childhood Early Intervention program offers a pathway to support outside the standard process.

A new eligibility test will assess how your disability affects your daily functioning and require that all other supports, such as health treatments or compensation schemes, have been explored before NDIS funding is granted. From January 2028, this new test will replace the current access lists.

The three funding categories explained

NDIS funding is split into three main support categories, with plan budgets including specific allocations such as community participation budgets. Think of them as three separate budgets, each with its own rules.

1. Core Supports, your most flexible budget

Core Supports covers your day-to-day needs and is the most flexible of the three categories. You can move funds between most Core support types depending on what you need most at any time.

A key focus of Core is social and community participation, helping you engage in everyday community life and build independence and inclusion. Core includes daily activities (personal care, domestic assistance, community participation), consumables (continence aids, low-cost assistive technology), transport and assistance with social participation.

2. Capacity Building Supports: Investing in your independence

Capacity Building is designed to help you build skills and independence over time. It's less flexible than Core, funds are allocated to specific categories and can't be moved between them.

Examples include Support Coordination (help managing your NDIS plan), therapy (speech, occupational, physiotherapy), improved daily living skills, employment support and improved relationships and social skills.

3. Capital Supports

Capital Supports covers higher-cost items that are durable or one-off. This is the least flexible category, funds can only be used for the specific item they were approved for.

This includes Assistive Technology (wheelchairs, communication devices, specialised equipment) and Specialist Disability Accommodation (SDA), modified housing for participants with very high support needs.

How is your funding amount decided?

The NDIA uses a "reasonable and necessary" test to decide what's included in your plan. Eligibility is assessed based on how your impairment affects your ability to perform daily activities without support. A support is considered reasonable and necessary if it:

• Is related to your disability

• Helps you pursue your goals

• Represents value for money

• Is likely to be effective and beneficial

• Takes into account what informal supports (family, friends) are already available to you

To meet NDIS eligibility requirements, your impairment must substantially reduce your ability to complete day-to-day tasks. The new eligibility criteria also require that all appropriate treatment options, including health treatments or compensation schemes, have been explored first. If a treatment is likely to significantly improve the impact of your impairment, eligibility may not be granted.

The amount in your plan isn't a reflection of the severity of your disability. It's based on what supports you need to live as independently as possible and achieve your goals.

Plan Management: Who handles the finances?

You have three choices for how your NDIS funding is managed.

NDIA-managed (agency-managed): The NDIA pays providers directly. You can only use registered NDIS providers, who are subject to stricter regulation and oversight. Recent reforms have introduced stronger powers for the NDIA to oversee funding allocations and compliance.

Plan-managed: A plan management provider handles payments on your behalf. You can use both registered and unregistered providers. The NDIS funds your plan manager separately — it doesn't come out of your support budget.

Self-managed: You manage the funds yourself, pay providers directly and claim reimbursement from the NDIS. It's the most flexible option, you can use any provider, but requires more administration.

Many participants choose plan management as the best balance of flexibility and simplicity. Your Wesley Mission Support Coordinator can help you work out which option suits you best.

What is a Support Coordinator and do you need one?

A Support Coordinator is a professional who helps you understand your NDIS plan, connect with service providers and make sure you're getting the most out of your funding. Not everyone has Support Coordination in their plan, it's typically included for participants with more complex needs or those new to the system.

Support Coordination is especially valuable if your circumstances are changing or you're navigating the new eligibility and funding reforms.

Wesley Mission offers Support Coordination as part of our disability services. If you're not sure whether you have this funding in your plan, check your NDIS plan document or give us a call, we're happy to take a look with you.

What happens when your plan runs out?

NDIS plans run for a set period, usually 12 months. If you use your budget before the plan ends, you may need to request an unscheduled review with the NDIA.

It's also worth knowing that recent reforms give the minister new powers to adjust funding for certain supports, such as community participation budgets, across the board, without reassessing individual plans. Some supports may also shift from the NDIS to other government or health service systems over time.

The best way to stay on top of all this is to work with a Support Coordinator who monitors your spending and flags when you might be running low.

One important thing to know: if you don't use all your funding by the end of the plan period, unspent Core funds don't roll over, they return to the NDIA. Good plan utilisation matters.

NDIS Quality and Safeguards

Your safety and the quality of your supports are protected by the NDIS Quality and Safeguards Commission (NQSC), an independent body that regulates NDIS providers and sets standards across all disability services.

If you have a concern about the supports you're receiving, the NQSC is the place to raise it. They investigate complaints, provide guidance on quality and safety, and work to resolve issues quickly and fairly. This oversight protects the rights and wellbeing of every NDIS participant, whether you're accessing registered or unregistered providers.

You can reach the NQSC at ndiscommission.gov.au.

Policy and Legislation: How the NDIS is governed

The NDIS is underpinned by the National Disability Insurance Scheme Act 2013, which sets out the principles, objectives and rules that guide how the scheme operates. The NDIA is responsible for implementing the NDIS in line with this legislation, making sure all funded supports are reasonable and necessary.

The federal government shapes NDIS policy, develops pricing arrangements and ensures the scheme remains fair and effective. Regular independent review and parliamentary scrutiny help keep it accountable, so the NDIS continues to deliver for the people it's designed to support.

The future of the NDIS

Ensuring the long-term sustainability of the NDIS is a major focus for government, the NDIA and the broader disability sector. Rising costs and growing demand have prompted a series of reforms aimed at keeping the scheme financially sustainable while maintaining high-quality support for people with significant and permanent disability.

Recent changes include updates to eligibility rules, adjustments to plan budgets and new approaches to provider pricing. There's also a strong emphasis on social and community participation, making sure the NDIS continues to help people live independently and engage fully in their communities.

It's an ongoing balancing act. But the commitment to person-centred support remains at the heart of the NDIS, now and into the future.

How Wesley Mission can help

Whether you need in-home support, day programs, Support Coordination or accommodation, Wesley Mission is a registered NDIS provider with more than 75 years of experience supporting people with disability across western Sydney and beyond.

We work alongside participants, families and health professionals to make sure you're getting the right support, and that your NDIS funding is working as hard as it can for you.

We offer:

• In-home and community support: Personal care, domestic assistance, community access

• Wesley LifeSkills: Day programs for adults with disability in multiple Sydney locations

• Support Coordination: Help navigating your NDIS plan

• Specialist Disability Accommodation (SDA): Modified housing across western Sydney suburbs

• Supported Independent Living (SIL): 24/7 support in shared or individual accommodation

Talk to us about your NDIS Supports

Not sure what support is right for you? Our team can help you understand your plan and connect you with the right services. Give us a call or send an inquiry, no obligation.