NDIS Budget Categories Explained
Master the three NDIS budget categories - Core Support, Capital Support, and Capacity Building. Understand how each works, their flexibility levels, and smart usage strategies.
Understanding the 3 Budget Categories
Your NDIS funding is divided into three distinct categories, each with different rules, flexibility levels, and purposes. Understanding these differences is crucial for effective budget management.
Key Point: Different Rules for Different Categories
Each category has different flexibility levels and usage rules. Core Support is highly flexible, Capital Support is very specific, and Capacity Building is goal-focused. You cannot move funding between categories without NDIS approval.
Each Category Explained in Detail
Learn how each category works, what's included, and how to use them most effectively.
Core Support
Your Essential Daily Supports
Funding for your everyday disability-related support needs including assistance with daily activities, consumables, and transport.
Key Features:
Flexibility Level: High
Funds can move freely between different Core Support types without approval
What's Included in Core Support:
Assistance with Daily Life
Personal care, domestic assistance, meal preparation, shopping support
Transport
Getting to appointments, community access, public transport training
Consumables & Equipment
Continence aids, wound care, low-cost assistive technology
Social & Community Participation
Community access support, social activities, peer support
Smart Usage Tips:
Capital Support
Your Equipment & Home Solutions
Funding for assistive technology, equipment, home modifications, and vehicle modifications that help you live independently.
Key Features:
Flexibility Level: Low
Specific item funding only - requires quotes, assessments, and approval
What's Included in Capital Support:
Assistive Technology
Equipment like wheelchairs, communication devices, hearing aids
Home Modifications
Ramps, bathroom modifications, accessible doorways, lighting
Vehicle Modifications
Hand controls, wheelchair hoists, accessible entry systems
Specialist Disability Accommodation (SDA)
Purpose-built accessible housing with specific design features
Smart Usage Tips:
Capacity Building
Your Skills & Independence Building
Funding for supports that help you build skills, independence, and connections to achieve your goals and increase your capabilities.
Key Features:
Flexibility Level: Medium
Goal-focused funding with specific outcomes - time-limited investments
What's Included in Capacity Building:
Improved Living Arrangements
Support coordination, specialist support coordination
Increased Social & Community Participation
Group programs, community connector, peer support
Finding & Keeping a Job
Employment support, job coaching, workplace assessments
Improved Relationships
Relationship counseling, family support, social skills training
Improved Health & Wellbeing
Allied health therapies, psychology, exercise physiology
Improved Learning
Educational support, tutoring, learning programs
Smart Usage Tips:
Quick Comparison Guide
See how the three categories compare across key aspects to help you understand which category to use for different needs.
| Aspect | Core Support | Capital Support | Capacity Building |
|---|---|---|---|
| Flexibility | Very High - move funds between types freely | Very Low - specific items only | Medium - goal-focused usage |
| Approval Required | No - for moving between Core types | Yes - for most purchases over $1,500 | Sometimes - depends on service type |
| Time Limits | Use anytime during plan period | No time limits once approved | Often time-limited programs |
| Typical Uses | Daily support, transport, consumables | Equipment, home mods, technology | Therapy, training, skill building |
| Documentation | Basic receipts and records | Quotes, assessments, detailed records | Progress reports, outcome measures |
Smart Usage Strategies for Each Category
Learn proven strategies to maximize the value and effectiveness of each budget category.
Balance your spending across the year
Core Support is flexible but you need to pace spending across 12 months
Tip: Divide annual Core budget by 12 for monthly guide
Use flexibility to adapt to changing needs
Move funds between daily life, transport, and community participation as needed
Tip: More transport in winter, more community access in summer
Combine supports for efficiency
Group activities to make the most of support worker time and transport
Tip: Grocery shopping + medical appointments in one trip
Plan major purchases carefully
Capital items should last years and provide ongoing independence benefits
Tip: Consider total cost of ownership including maintenance
Get multiple quotes and assessments
NDIS requires evidence of need and value for money for Capital purchases
Tip: Occupational therapy assessment often required
Think long-term independence
Choose items that reduce reliance on paid supports over time
Tip: Equipment that enables self-care reduces Core Support needs
Focus on skill development with lasting impact
Invest in training and therapy that builds independence permanently
Tip: Skills learned reduce future support needs
Set clear, measurable goals
Capacity Building is outcome-focused - define what success looks like
Tip: Work with providers to set SMART goals
Combine with other categories strategically
Use with Core and Capital supports to maximize independence outcomes
Tip: Equipment + training = better independence results
Budget Categories Questions & Answers
Find answers to frequently asked questions about how budget categories work and interact.
Explore Specific Category Guides
Now that you understand the categories, dive deeper into how to use each one effectively.
Need Help Managing Your NDIS Budget Categories?
Our experienced team can help you understand how to use each category effectively and develop strategies to maximize your funding outcomes.
