Easy Read: Changes to NDIS funding and budget

NDIS funding changes from 19 May 2025

On the 3rd October 2024, the National Disability Insurance Agency (NDIS) announced some changes to your NDIS funds that take effect on 19 May 2025.

NDIS funds mean how much NDIS money you get. It can also be called an NDIS budget.

• They changed the list of items you can use your NDIS funds for.

• They made a list of items you can’t use your NDIS funds for.

Another big change is how you see NDIS funds in your plan.

In this easy read guide, we explain what these NDIS funding changes are.

Why are there changes to NDIS funding?

This National Disability Insurance Agency (NDIA) looks after the NDIS. They want to make sure your NDIS funds don’t run out.

They also want to make sure your NDIS funds are being spent on the right NDIS supports.

The changes to your NDIS budget will help you understand your funds better.

These changes will start when you get your plan for the first time or your are reassessed.

NDIS funding change 1: Total funding amount

When you get your next NDIS plan, it will show the total NDIS budget.

It is called your total funding amount.

This budget will be all the money you will get from the NDIS in one year.

It will be all the parts of your funding added together.

NDIS funding change 2: Funding components

Your NDIS budget will have groups of NDIS supports. This is called funding components.

Each group will have its own budget. This is called funding component amounts.

The NDIS works out how much money they will provide for each group.

They think about:

How much support you need

How much these supports cost

Who will give you this support

NDIS funding change 3: Your funding period

Your NDIS budget will also show how long your NDIS funding will last. This is called the funding period.

You may be able to use your NDIS funds for one year.

Or you may have to use your NDIS funds in a smaller amount of time.

The NDIS said in May 2025 that people have told them that 12 months is too long to keep track of your money.

From 19th May 2025, they will change funding periods to 3 months.

This change won’t happen all at once.

It will be after you get a new or reassessed plan.

When you have a funding period, it makes it easier to keep track of your budget. It makes it easier to not spend more money than you have.

The NDIS will think about lots of things when deciding how long your NDIS funding lasts for.

They might look at how you have spent your NDIS funds before.

They might look at whether your needs change often.

They might think about whether there is a chance you could be exploited. Exploited is when someone else spends your NDIS funds on themselves.

How Five Good Friends can help manage your NDIS funding

At Five Good Friends, we have lots of ways to help you know if your supports are in line with your NDIS budget.

We set up a NDIS Service Agreement. This is an agreement between you and us that explains what we will help you with.

It explains what services you get and what they cost. This can help you make sure it fits with your plan.

We also set up a budget for the supports you are requesting from FGF. We make the budget with you and your support network.

Do you need some help with your NDIS funding? Our friendly team would love to talk to you about your NDIS goals and how we can help you.