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When the new NDIS Act landed, section 33 introduced a quiet little clause about funding periods. Most of us noted it, nodded vaguely and moved on. Fast forward to 19 May 2025, and suddenly it’s live. It’s in new plans built from that date onwards, and throwing participants, systems and providers into a spin.
Let’s start by defining some new terms we are going to need to get used to.
Total funding amount
This is the total funding across the life of the plan.
Image 1. Example of a total funding amount in a (fictitious) plan.
Funding component
A funding component refers to the total amount of funding allocated to a specific support or group of supports in a participant’s plan. It may cover multiple support categories, such as with Flexible Core, which can include funding for daily living, transport, consumables, and community participation. It may also relate to a single category, such as Improved Daily Living, or to a specific support, like a power wheelchair funded under Assistive Technology.
Funds in a funding component can only be used for the supports included in that component.
Image 2. Example of the funding components included in a (fictitious) plan.
Funding period
A funding period breaks the funding into smaller instalments that are released over time. It defines when a portion of funding becomes available, how long it needs to last and what can be spent during that window. Unused funds roll forward within the same plan, but not into the next plan. You cannot draw funds forward from future periods.
Image 3. Example of funding periods in a Flexible Core funding component in a (fictitious) plan.
Of all these new terms, it’s funding periods that are getting the most attention and have the greatest potential for disruption. So, let’s dive deeper.
How funding periods work
Funding periods divide a plan budget into time-based segments. They determine:
- when part of the funding is released
- how much can be spent
- which supports it applies to.
Most funds default to three-month periods. But some supports have a shorter one-month period as standard including:
- Supported Independent Living (SIL)
- Plan Management
- Specialist Disability Accommodation (SDA)
- Assistance with Daily Living funding over $200,000 a year
Some supports may have longer periods. Assistive Technology, for example, might be funded across a 12-month period to allow for a one-off purchase.
Is funding distributed equally?
Not necessarily. Funding may be spread evenly across funding periods. For example, a 12-month plan with three-month funding periods might release 25% of a component each quarter. But some supports are front-loaded. That means more funding is released at the start of the plan or earlier in the sequence. This might be appropriate for things like behaviour support plan development, plan manager setup fees, bulk consumables (such as continence products), or assistive technology. The NDIA says that a participant can negotiate this during the reassessment process.
How funds are distributed across funding periods matters because supports and funding must align with the periods set out in the plan. While leftover funds roll forward to the next period, there is no provision in section 33 of the Act for funds to be transferred backward into a previous funding period. This is designed to ensure participants spend their funds within budget and that the total plan funding lasts across the full duration of the plan.
But it also has the potential to create tension in the real world. If a participant has a legitimate need for funding to be front-loaded but receives a plan with funds spread evenly, they and their providers can find themselves between a rock and a hard place. One of two things may occur:
- The provider proceeds with delivering supports that are not aligned with the funding periods in the plan - risking non-compliance with section 33 and facing cash flow strain while waiting for the next funding period to open.
- The provider does not proceed with the required supports - resulting in delays, fragmented service delivery, and reduced responsiveness to the participant’s needs.
It's important to distinguish between a plan where the total funding amount is insufficient and a plan where the distribution of that funding across periods is inappropriate to meet the participant’s needs over time. I’ll talk more about getting changes to funding periods in both cases coming up.
How do providers know which funding periods are in a Plan?
Funding periods aren’t hidden but you do need to know where to look, and how access differs by role.
Participants can see their funding periods, including the start and end dates, amounts released, and how much has been used in:
- the participant portal
- the My NDIS app
- their plan manager’s portal or app (if they use one)
- their monthly statement (if plan managed)
- the plan document itself
Support coordinators can view funding period information with participant consent through the PACE provider portal. This includes live balances and details of how much funding has been made available, used, and when the next release is scheduled.
Plan managers receive access automatically through the PACE provider portal once the participant endorses them in the system. They can view funding periods for all budgets that are plan managed, including live balances and upcoming funding releases. This access is limited to budgets they are actively managing.
All other providers will not be able to see funding period information through the PACE provider portal. These providers will need to have conversations with participants about which funding periods apply to the supports they’re delivering, how much funding is available and when that funding resets.
Due to privacy reasons, providers cannot insist that participants show them their NDIS plan or provide live updates from the participant portal or app. At the same time, providers must weigh up the business risk of delivering services without visibility of available funds. Where access to information is insufficient, they may need to make informed decisions about service continuity, pause points or alternate arrangements.
Can funding periods be changed?
Yes, sometimes. There are three main pathways.
Plan variation
Used to fix errors or move funding between periods without changing the total budget. For example, correcting a plan where Plan Management setup fees were erroneously spread equally rather than placed in the first period.
Internal review
Available within three months of plan approval if the participant wants to dispute the total funding amount (i.e. where the participant believes the total funding amount is insufficient) or the way funds have been structured across funding components.
Plan reassessment
Used after the three-month internal review window or when a participant’s needs change significantly.
There is also the option to request early release of future funds in exceptional circumstances. The NDIA has confirmed that this is possible, but only in limited situations. The total plan budget will not change, it’s simply a reordering of when funds are accessed. Requests must go through the NDIA and are considered on a case-by-case basis.
So, what do providers need to be thinking about now?
Funding periods aren’t just an administrative change, they’re a structural shift in how plans are designed, delivered, and billed. They’re already raising questions about service agreements, CRM systems, compliance risks and cash flow. Especially when multiple providers draw from the same budget.
There are also new compliance risks to navigate. Some providers are already considering "holding" claims and submitting them once the next funding period opens. While that might be operationally possible, it’s legislatively risky under section 33. Especially where a provider is overservicing and the participant is not spending within their budgeted allocation.
Learn More
If you're still working through what this means for your organisation, you’re not alone. We’ve pulled together the key insights, examples and emerging strategies in our latest workshop: Funding Periods & Components: What You Need to Know
