Understanding NDIS Plan Categories: Core, Capacity Building & Capital

Your NDIS plan isn't just a single pool of money - it's carefully structured into different budget categories, each with its own purpose and flexibility rules. Understanding these categories is crucial for making the most of your NDIS funding and achieving your goals effectively.

Overview: How NDIS Plan Structure Works

Think of your NDIS plan like a wallet with different compartments for different purposes. You can't move money between all compartments, but within some compartments, you have flexibility in how you spend.

The Three Main Categories

1. Core Supports Budget - Most flexible, covers daily living support
2. Capacity Building Budget - Fixed categories, focuses on building skills
3. Capital Supports Budget - Specific items only, equipment and modifications

Core Supports Budget: Your Most Flexible Funding

Core Supports form the foundation of most NDIS plans and offer the greatest flexibility. This is funding you can generally move between different Core categories based on your changing needs.

What Core Supports Include

Assistance with Daily Life

• Personal care support (showering, dressing, grooming)
• Household tasks (cleaning, cooking, shopping)
• Respite care for families and carers
• Support worker assistance in your home or community

Social and Community Participation

• Support to engage in community activities
• Assistance attending social events, hobbies, or interests
• Group programs and activities
• Community access support

Consumables

• Everyday items related to your disability
• Continence products
• Shower aids and bathroom equipment
• Nutritional supplements (if disability-related)
• Low-cost assistive technology under $1,500

Transport

• Specialized transport when public transport isn't accessible
• Additional transport costs due to your disability
• Transport to and from NDIS-funded supports
• Vehicle modifications under $1,500

Core Supports Flexibility Rules

What you CAN do:

• Move funding between Core categories (e.g., use transport funding for daily living support)
• Change how you use the funding throughout your plan
• Use different providers for different Core supports
• Combine Core funding for various support types

What you CANNOT do:

• Move Core funding to Capacity Building or Capital categories
• Use Core funding for non-disability related expenses
• Purchase items over $1,500 without separate Capital funding

2025 Core Supports Updates

Price Increase: Core supports increased by 4.36% in the 2025-26 price guide New Flexibility: Improved guidance on moving funding between Core categories Clearer Reporting: Better tracking tools in the myplace portal for Core spending

Capacity Building Budget: Fixed Categories for Skill Development

Capacity Building supports focus on developing your skills, independence, and community connections. Unlike Core Supports, funding in Capacity Building stays within specific categories - you cannot move money between them.

The Eight Capacity Building Categories

1. Support Coordination

• Help connecting with providers and services
• Assistance navigating the NDIS system
• Plan implementation support
• Crisis and complex support coordination

2. Improved Daily Living

• Therapy services (occupational therapy, physiotherapy, speech pathology)
• Skills training for independence
• Behavior support and psychology services
• Dietitian and exercise physiology services

3. Health and Wellbeing

• Exercise programs and gym memberships
• Nutrition advice and cooking classes
• Mental health support
• Wellbeing and lifestyle programs

4. Choice and Control

• Plan management services
• Support to understand your rights and choices
• Decision-making support
• Financial management training

5. Employment

• Job seeking assistance and career counselling
• Workplace support and job coaching
• Skills training for employment
• Support finding and maintaining work

6. Home Living

• Support finding appropriate housing
• Tenancy support and household management
• Home safety and maintenance training
• Supported independent living (SIL) services

7. Lifelong Learning

• Educational support and tutoring
• Transition planning (school to work/adult life)
• Learning disability support
• Skills development courses

8. Relationships

• Social skills development
• Building and maintaining friendships
• Family relationship support
• Positive behaviour support

Capacity Building Flexibility Rules

What you CAN do:

• Use all funding within each specific category
• Change providers within the same category
• Adjust the intensity of supports within categories

What you CANNOT do:

• Move funding between Capacity Building categories
• Use Improved Daily Living funding for Employment supports
• Transfer Capacity Building funding to Core or Capital categories

How to Maximize Capacity Building

Strategic Planning:

• Be realistic about which categories you'll actually use
• Consider combining categories that work together (e.g., Employment + Improved Daily Living)
• Plan for skill development that builds toward your long-term goals

Provider Selection:

• Choose providers who can deliver multiple types of support within categories
• Look for providers who understand how different supports connect
• Consider providers who can work across different settings (home, community, workplace)

Capital Supports Budget: Equipment and Home Modifications

Capital Supports fund assistive technology, equipment, and home modifications that support your independence and participation. This category is the most restrictive - funding can only be used for specific quoted items.

What Capital Supports Include

Assistive Technology

• Wheelchairs and mobility equipment
• Communication devices and software
• Computer access equipment
• Hearing aids and visual aids
• Prosthetics and orthotics

Home Modifications

• Ramps and accessibility improvements
• Bathroom modifications (roll-in showers, grab rails)
• Kitchen accessibility modifications
• Stairlifts and platform lifts
• Door widening and threshold modifications

Vehicle Modifications

• Hand controls and adaptive driving equipment
• Wheelchair accessible vehicle modifications
• Transfer assistance equipment

Capital Supports Process

1. Assessment Required

• Comprehensive assessment by qualified Allied Health professional
• Detailed report justifying the need for equipment/modification
• Evidence that the item will help achieve your NDIS goals

2. Quotation Process

• Minimum 2-3 quotes for items over $1,500
• Quotes must be from qualified suppliers/installers
• Specifications must match assessment recommendations

3. NDIA Approval

• Some items require pre-approval before purchase
• Complex or expensive items may need additional review
• Home modifications typically require building permits

4. Purchase and Installation

• Items must be purchased exactly as quoted and approved
• Professional installation required for complex items
• Warranty and maintenance considerations

Capital Supports Flexibility Rules

What you CAN do:

• Purchase approved items exactly as quoted
• Choose between approved quote options
• Request plan variations for urgent needs

What you CANNOT do:

• Use Capital funding for different items than approved
• Purchase similar but different equipment without new approval
• Move Capital funding to Core or Capacity Building categories

Special Budget Category: Transport (SIL Participants)

Some participants have a separate Transport Budget that works differently from Core transport funding.

Recurring Transport Budget:

• Regular weekly transport funding
• Paid directly by NDIA to transport providers
• Typically for participants in Supported Independent Living (SIL)
• Covers regular, predictable transport needs

Understanding Plan Management and Budget Categories

How you manage your plan affects how you can use funding across categories:

NDIA-Managed Plans

• NDIA pays providers directly
• Can only use registered NDIS providers
• Limited flexibility in provider choice
• Automatic compliance with category rules

Plan-Managed Plans

• Plan manager handles payments and reporting
• Can use registered and some unregistered providers
• More provider choice within categories
• Plan manager ensures category compliance

Self-Managed Plans

• You handle all payments and reporting
• Maximum provider choice (registered and unregistered)
• Full responsibility for category compliance
• Need good record-keeping skills

2025 NDIS Plan Updates and Changes

New Plan Features

3-Month Funding Periods:

• Plans now break down annual funding into quarterly amounts
• Helps with budgeting and spending tracking
• Easier to identify if you're under or over-spending

Enhanced Plan Reporting:

• Clearer breakdown of funding components
• Better visibility of spending across categories
• Improved myplace portal features

Price Guide Updates:

• Core supports increased by 4.36%
• Some therapy rates adjusted in Capacity Building
• Transport rates updated for regional areas

What These Changes Mean for You

Better Budget Management:

• Quarterly breakdowns help track spending pace
• Earlier identification of funding issues
• More opportunities for plan adjustments

Improved Transparency:

• Clearer understanding of how funding is allocated
• Better information for plan reviews
• Enhanced participant control and choice

Practical Strategies for Managing Your Plan Categories

Planning Phase Strategy

1. Prioritize Your Needs

• List your most important goals and needs
• Identify which category each need fits into
• Allocate funding based on priority and category rules

2. Consider Connections

• Plan how different categories work together
• Think about skill building that supports multiple goals
• Consider how Core and Capacity Building can complement each other

3. Build in Flexibility

• Keep some Core funding flexible for changing needs
• Don't allocate every dollar in Capacity Building if uncertain
• Plan for seasonal or cyclical support needs

During Your Plan

Monthly Reviews:

• Check spending across all categories in myplace
• Identify any under or over-spending trends
• Adjust provider arrangements if needed

Category Monitoring:

• Track Capacity Building spending carefully (it doesn't transfer)
• Use Core flexibility when needs change
• Plan Capital purchases well in advance

Quarterly Assessments:

• Review progress toward goals in each category
• Assess whether funding allocation is working
• Consider plan variations if major changes needed

Preparing for Plan Reviews

Evidence Collection:

• Document how each category has helped achieve goals
• Identify any gaps or unmet needs by category
• Prepare justification for funding increases or decreases

Future Planning:

• Consider how your needs might change
• Plan for new goals requiring different category allocations
• Think about skill development reducing need for some supports

Common Plan Category Mistakes to Avoid

Mistake 1: Not Understanding Category Restrictions

Problem: Trying to move Capacity Building funding between categories Solution: Plan Capacity Building allocations carefully upfront

Mistake 2: Over-allocating Capacity Building

Problem: Requesting funding you won't actually use Solution: Be realistic about your capacity for skill development

Mistake 3: Under-utilizing Core Flexibility

Problem: Not adjusting Core spending when needs change Solution: Regularly review and adjust Core support arrangements

Mistake 4: Capital Planning Too Late

Problem: Waiting until you need equipment to start the process Solution: Begin Capital assessments and quotes early in your plan

Mistake 5: Ignoring Category Connections

Problem: Planning categories in isolation Solution: Consider how categories work together to achieve goals

Making the Most of Your NDIS Plan Structure

Understanding your plan categories isn't just about compliance - it's about maximizing your outcomes and independence. Here's how to succeed:

Strategic Thinking:

• View your plan as an integrated system, not separate funding pots
• Consider how supports in different categories build on each other
• Plan for both immediate needs and long-term skill development

Active Management:

• Monitor spending regularly across all categories
• Communicate with providers about category requirements
• Stay flexible within the rules to adapt to changing needs

Goal Focus:

• Ensure all category spending aligns with your NDIS goals
• Regularly assess whether funding is helping achieve outcomes
• Adjust strategies based on progress and results

Community Connection:

• Use funding to build community connections and natural supports
• Consider how paid supports can reduce over time through skill building
• Focus on participation and independence, not just service provision

Your NDIS plan categories are designed to provide structure while maintaining flexibility where it matters most. By understanding how each category works and planning strategically, you can make the most of your NDIS funding to achieve your goals and build the life you want.

Remember: the best NDIS plan is one that evolves with you, using the category structure to build skills, maintain flexibility, and achieve meaningful outcomes in your community.