How Does NDIS Funding Work?

How does NDIS funding work? This article explores how NDIS funding works, what each funding category covers, and the eligibility criteria for this government initiative.

Updated on Feb 27, 2024
5 min read

NDIS funding is a system designed to support Australians with disabilities. It stands for the National Disability Insurance Scheme. 

The goal is to provide financial aid for necessary services and support tailored to individual needs. 

Understanding how NDIS funding works is crucial for those who need help navigating the process. 

If you're wondering, "How does NDIS funding work?" keep reading. 

In this article, we'll break down the basics of NDIS funding. We will discuss its purpose, eligibility criteria, and the steps needed to access and manage NDIS funding.

NDIS Funding Explained 

NDIS participants need to understand how NDIS funding works. 

Every year, around 550,000 Australians with disabilities receive support through the NDIS. In fact, the NDIS allocates $22 billion to support these individuals every year. 

To access NDIS funding, you must be eligible. If you are eligible, you will have a planning meeting with the National Disability Insurance Agency (NDIA).

When your NDIA plan is developed, the services you need will be outlined. But first, the funding for those support services must be approved.

NDIS funding includes three funding categories:

  1. Core support
  2. Capacity building
  3. Capital support

The core support budget covers help with daily living, consumables, social activities, and transport.

The capacity building budget is for improving skills and relationships. This includes support coordination. 

The capital support budget is for assistive technology and home modifications.

NDIS funding is personalised to meet specific needs and objectives. It aims to provide reasonable and necessary services. It supports individuals in achieving their goals and accessing community services.

Your funding must comply with NDIA guidelines. 

NDIS funding sources involve contributions from the Federal Government, states, territories, and taxpayers.

The Federal Government contributes over half of the NDIS funding. Additional contributions come from mechanisms like the Medicare levy. This funding pool supports the provision of services for those with disabilities.

Core Support Budget

The core support budget includes:

  • Consumables
  • Daily activities
  • Social and community participation
  • Transport support

It's designed to address everyday needs and activities. 

This budget offers flexibility across different support categories. It allows individuals to tailor their support to meet specific needs. 

The NDIS funding rules state that the core support budget gives flexibility in how funds are used. But, the funds need to be used for specific purposes in the defined categories.

You can usually use core budget funds from one support category to get support from another. But, if the funds are reserved for specific purposes, they must not be used for others. 

For instance, if they are reserved for periodic transport payments or certain types of core budget items. This can be compensation or specialised disability accommodation.

For more information about your core supports, check your NDIS plan.

Capacity Building Budget

The capacity building budget aims to improve your skills and independence. This is done through allocated support sub-categories. 

This budget is divided into eight specific areas. This division allows you to target different aspects of your development.

These categories are:

  1. Choice and control
  2. Health and well-being
  3. Employment
  4. Daily activity
  5. Support coordination
  6. Home living
  7. Relationships
  8. Lifelong learning

Each of these sub-categories is designed to help you build the necessary capabilities. These capabilities help you lead a more independent life. 

For instance, the employment category focuses on helping you secure and maintain employment. The health and well-being category aims to improve your health outcomes.

The funding is directed towards specific goals outlined in your NDIS plan. These goals are aimed at improving your skills, knowledge, and independence.

Participants can use this budget to engage professionals and therapists. They can hire service providers who specialise in areas relevant to their goals. For instance, skill development, social participation, or health management.

The capacity building budget offers flexibility. It allows individuals to choose service providers and activities that align with their unique needs and goals.

Capital Support Budget

The capital support budget is designated to provide help essential support. These include assistive technology and home modifications. 

This budget is allocated to help individuals access aids that improve their independence.

The funds under this budget can be used for various purposes. For example, obtaining mobility devices or communication tools. It can also cover making necessary adjustments to living spaces for accessibility.

It can also cover vehicle modifications. It makes the participant's vehicle more accessible and accommodating.

These items are generally more expensive. They have a long-lasting impact on the participant's daily life.

When planning your NDIS budget, you need to consider the specific needs that fall under this category. 

Whether it's installing ramps, handrails, or specialised equipment, this budget is tailored to you. Your unique requirements for daily living and mobility, to be more precise.

What Does NDIS Funding Cover?

NDIS funding covers essential support services tailored to your needs and goals. 

The core support budget covers everyday consumables and daily activities, like help with self-care.

Social and community participation funding promotes engagement in social activities. Transport support aids those unable to use public transport. 

The capacity building budget is allocated across various support sub-categories. These include employment, health and well-being, and home living.

It also includes funds for lifelong learning and relationship support. 

The capital support budget caters to assistive technology and home modifications. These can include mobility equipment and bathroom rails.

Specific funds are earmarked for their intended purposes within these categories.

With NDIS funding, you have access to a range of necessary services and aids to support your independence and well-being. It ensures that you can live your life to the fullest.

Who Is Eligible for NDIS Funding?

To receive NDIS funding, you must be eligible. 

Eligibility criteria include:

  • Having a permanent and significant disability
  • Being aged between 7 and 65
  • Meeting specific citizenship or residency criteria
  • Living in an NDIS-participating area
  • Needing ongoing support

The eligibility criteria ensure that those who need support due to their disability can access the services provided by the NDIS.

The disability should be a permanent and significant impairment. It must substantially limit the person's ability to participate effectively in everyday activities.

The individual must be an Australian citizen, a permanent resident, or a Protected Special Category Visa holder.

The person must need support due to their disability. This support should be likely to be needed for the long term.

Eligibility is determined through an assessment process. This assessment is conducted by the National Disability Insurance Agency (NDIA).

For children under seven, eligibility is determined through the Early Childhood Early Intervention (ECEI) process. 

Understanding NDIS Funding

Now that you understand how NDIS funding works, you can take control of your support needs and work towards your goals.

With personalised funding for core, capacity building, and capital supports, NDIS empowers individuals with disabilities to live independently and access necessary services.

If you are looking for an NDIS provider, Inclusive Home Care can be the answer to all your problems. We offer specialised disability support for Australians who need our help. 

Contact us if you want to know more. 

Schedule a free personalised consultation now.

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