Feeling overwhelmed by your NDIS funding categories? Not sure how to get the most from them? You’re definitely not alone. Many participants find it hard to direct their way through this complex system and miss out on valuable support opportunities.
NDIS splits funding into three main budget categories: Core, Capital, and Capacity Building. Core supports give you the most flexibility. You can move funds between different areas without needing a plan review. To name just one example, you can redirect money from a support worker to specialised assistive devices. This shows just how adaptable your funding can be.
Getting to know all 15 support categories in these three main budgets helps you make the most of your plan. Core supports let you adjust as needed, but Capacity Building funding stays within its specific category to help build your long-term independence. Many participants don’t know that NDIS now approves funds for items like tablets for telehealth. This shows how the system keeps changing to meet people’s needs.
This piece breaks down each NDIS funding category, explains the rules that matter, and gives you practical steps to tap into your plan’s full potential. You’ll learn how to get all the support you deserve.
Understanding the 3 NDIS Funding Categories
Your NDIS plan has three different funding categories that support various aspects of your life. You need to know these categories to get the most from your funding and receive all eligible supports.
Core, Capital and Capacity Building explained
Your NDIS plan splits funding into three main budgets (also called ‘support purposes’):
Core Supports are the foundation of your everyday life. This category covers daily activities and gives you the most flexibility—you can move funds between its four subcategories:
- Assistance with daily living (help with showering, meal preparation)
- Transport (when public transport isn’t suitable due to disability)
- NDIS Consumables (everyday items like continence products)
- Social and community participation (support to take part in social activities)
Capital Supports pay for one-time investments in equipment and modifications. This category gives you the least flexibility—you must use the funding only for approved items. It has:
- Assistive technology (wheelchairs, communication devices, mobility aids)
- Home modifications (ramps, handrails, accessible bathrooms)
Capacity Building Supports help build your future independence. The funding helps you learn new skills and become more self-sufficient. You can’t move money between Capacity Building categories like you can with Core funding. These supports include coordination, employment assistance, improved health and wellbeing, and skill development for daily living.
Why knowing your categories matters
You can realise your plan’s full potential by understanding these categories. A Local Area Coordinator explained the differences using a simple showering example:
- Core: Gives you a support worker to help with showering
- Capital: Pays for shower modifications like handrails
- Capacity Building: Teaches you skills to shower independently
This knowledge helps you find your way through the NDIS Price Guide and make smart decisions about your budget. The information becomes even more valuable when you self-manage your plan because you’ll need to know what expenses each category allows.
Your understanding of flexibility rules prevents missed opportunities. Core funding can move between its subcategories, but Capital and Capacity Building funds must stay in their assigned areas.
Breaking Down Core Supports
Your NDIS funding categories offer Core supports as their most flexible component. You can move funds between Core subcategories throughout the year to match your changing needs, unlike other budgets. Let’s get into what each component covers:
Daily Living and Household Tasks
Core supports help you with everyday activities that your disability makes challenging. You’ll get help with personal care such as showering and dressing, household cleaning, yard maintenance, and meal preparation. A support worker can help with your morning routines or assist with laundry when these tasks become too difficult. Remember that you can’t use these funds to pay rent, buy groceries, or cover general household bills that everyone pays.
Transport and Travel Assistance
The NDIS provides transport support when your disability prevents you from using public transport. Support comes in three levels:
- Level 1 – AUD 2,727.72 yearly if you need community access but don’t work or study
- Level 2 – AUD 4,091.58 yearly if you work/study part-time (up to 15 hours weekly)
- Level 3 – AUD 5,284.19 yearly if you work or study 15 hours or more weekly
Some situations might qualify for higher amounts, especially when transport helps you keep a job.
Consumables and Everyday Items
This support covers items under AUD 2,293.49 that you need because of your disability. You can buy continence products, eating and drinking equipment, or disability-related health equipment. These items must help manage your disability rather than cover regular household costs.
Social and Community Participation
This funding helps you take part in community activities with proper support. Your support worker can join you at social events, sports activities, or community classes. This support builds relationships and grows your social networks while boosting your confidence in community settings. You’ll enjoy immediate benefits and develop skills that could lead to employment opportunities.
How to Use Capital and Capacity Building Funds
Capital and Capacity Building funds are great ways to get investment in equipment and skills development, though they’re not as flexible as Core supports. You need to understand specific rules and processes to tap into these funding categories.
Assistive Technology and Home Modifications
Capital supports pay for one-time investments in assistive technology (AT) and home modifications. Items under AUD 2,293.49 don’t need quotes or complex approvals. Mid-cost AT between AUD 2,293.49 and AUD 22,934.85 needs written evidence but not formal quotes. High-cost items above AUD 22,934.85 need detailed quotes.
Home modifications come in two types:
- Minor modifications (under AUD 30,579.80)
- Complex modifications that might change building structure
Both need assessment from qualified occupational therapists. The NDIS will pay for a building works project manager for complex modifications. This manager must be independent from builders who quote for the job.
Learning, Employment and Health Supports
Capacity Building supports help you develop skills to be more independent. Employment assistance funding covers:
- Job customization and connecting with employers
- Work experience options
- Building vocational skills
- Learning basic work skills
School leavers with learning difficulties can get up to two years of employment preparation funding. This funding also pays for employment mentors and private recruitment specialists who help you find and keep work.
Health and wellbeing funding helps with exercise programmes and diet advice to manage how disability affects you. You can work with nutritionists or personal trainers, but the NDIS won’t pay for gym memberships.
Support Coordination and Life Skills
Support coordination has three levels:
- Support connection – links you to informal and community supports
- Support coordination – teaches you to understand and use your plan
- Specialist support coordination – extra help for complex situations
Life skills development is part of Capacity Building. It helps you learn personal care, household management, and communication. This funding helps you create daily routines, handle finances, and build social skills—these are the foundations of independence.
Note that Capacity Building categories are different from Core supports. You must use the funding within its designated category.
Making the Most of Your NDIS Budget
About 40% of people find it hard to manage their NDIS budget. Becoming skilled at handling your NDIS funding will help you get the support you need. Your plan outcomes will improve substantially when you track your budget and understand the rules around flexibility.
Tracking your spending
Your NDIS budget needs regular monitoring to avoid running out of funds and maximise your available supports. Here are some tracking methods that work well:
- Check your remaining funds through the NDIS myplace portal on MyGov
- View your plan timeline, goals, and available funding in each category with the NDIS mobile app
- Pick from budget tools like Plan Tracker (AUD 22.93/month), My Spending Planner, or the free Blitzit App
- Look at your spending patterns every month
The NDIS provides budget calculators to help you estimate the support costs throughout your plan.
Flexibility rules and limitations
Core supports budget gives you the most flexibility—you can move funds between subcategories unless they’re marked as “stated supports”. Capacity Building funding stays within its designated category and can’t move elsewhere. Capital supports come with the strictest rules. You can only use these funds for their approved purpose, like assistive technology or home modifications.
Avoiding under or overspending
The NDIA might cut your future funding if you underspend, thinking you don’t need those supports. Running out of money before your plan renewal could leave you without vital services. Here’s how to keep things balanced:
- Work with your Support Coordinator or LAC to identify priorities before allocating funds
- Get quotes from providers to plan your spending until your plan ends
- Keep 5-10% of your budget as backup for unexpected needs
Tips for plan-managed and self-managed participants
Self-management lets you work with both registered and unregistered providers while negotiating prices. All the same, keep your invoices and receipts for five years. Make sure your purchases match the guidelines and NDIS checklist.
Plan-managed participants should check their plan management portal regularly. Review your invoices every two weeks to spot errors or fraud. This helps keep accurate records and prevents unwanted surprises.
Unlocking Your NDIS Potential
NDIS funding categories might look overwhelming at first. The right knowledge can turn your plan into a powerful tool that brings support and independence. This piece shows how Core, Capital, and Capacity Building categories work together to meet your different needs.
A good grasp of these categories helps you make smart decisions about your supports. Core funding gives you amazing flexibility. You can adjust between subcategories as your needs change. Capital supports give you the equipment and modifications you need, though with stricter rules. Capacity Building categories aren’t as flexible but help you develop vital skills for long-term independence.
Tracking your budget regularly is the key to NDIS success. You can use the myplace portal, mobile apps, or budget tools to watch your spending. This helps you avoid underspending or going over budget, which can be disruptive.
Your NDIS plan is more than just money – it opens doors to greater independence, community involvement, and a better life. Self-managed participants get more choices but need to keep good records. Plan-managed participants should check their statements often to make sure everything adds up.
Understanding funding categories helps you speak up for yourself during plan reviews. Note that unused funds might mean less money next time, so using your budget well shows you really need the support.
Your NDIS trip needs both system knowledge and active plan management. While challenges exist, knowing your funding categories lets you tap into NDIS’s full potential to reach your goals and improve your life. Take charge of your plan today. The right supports will help you achieve what matters most.