NDIS Funding Categories Explained: Core, Capacity Building, and Capital
Your NDIS plan arrives and you see dollar amounts next to words like "Core Supports," "Capacity Building," and "Capital Supports." It reads like a financial report nobody asked for.
But understanding these three budget categories is one of the most useful things you can do as an NDIS participant. Once you know what each one covers and the rules around spending, you'll feel a lot more in control of your plan.
Let's go through each one, with real examples.
The Three Buckets
Every NDIS plan organises funding into three main categories (the NDIA calls them "support budgets"). Think of them as three separate buckets of money, each with its own rules about what you can spend it on.
- Core Supports - your everyday help
- Capacity Building - help to build your skills and independence
- Capital Supports - bigger one-off purchases like equipment or home modifications
Not every plan will have all three. It depends on your individual needs and goals.
Core Supports: Your Everyday Help
Core Supports funding covers the day-to-day assistance you need because of your disability. This is usually the largest part of your plan.
What Core Supports Pay For
Core Supports has four sub-categories:
Assistance with Daily Life - support workers helping with personal care (showering, dressing, meals), household tasks, or community access. This also covers things like short-term accommodation (respite).
Transport - funding to help you get around. This could be taxi fares, ride-share costs, or funding towards a modified vehicle. Some people get a set amount per year for transport.
Consumables - everyday items related to your disability that you use up regularly. Continence products, low-cost assistive technology (under $1,500), and other disability-related consumables.
Social and Community Participation - support to help you take part in social, recreational, and community activities. This covers things like a support worker accompanying you to a gym, a social group, or a community event.
The Flexibility Rule
Here's something many people don't realise: Core Supports is the most flexible budget category. You can move funding between the four sub-categories within Core (with some exceptions around transport).
So if you've got more money in "Assistance with Daily Life" than you need, you may be able to use some of that for "Social and Community Participation" instead. This flexibility doesn't apply to the other two categories.
Your plan manager or support coordinator can help you understand exactly what's flexible in your specific plan. At NIR, we track this for our clients so they always know what they can and can't move around.
Capacity Building: Investing in Your Independence
Capacity Building is about building your skills so you can become more independent over time. It's an investment in your future.
What Capacity Building Pays For
This category has nine sub-categories:
Support Coordination - funding for a support coordinator to help you understand and use your plan. This is where NIR's services are funded from.
Improved Living Arrangements - help to find and maintain housing.
Increased Social and Community Participation - programs that build your social skills and help you participate more in your community.
Finding and Keeping a Job - employment support services, like job coaches or employment programs.
Improved Relationships - support from psychologists, behaviour support practitioners, or counsellors to help with relationships and social connections.
Improved Health and Wellbeing - exercise programs, dietetics, or other health supports linked to your disability goals.
Improved Learning - help to access education and training.
Improved Life Choices - this is where plan management funding sits.
Improved Daily Living - therapy services like occupational therapy, physiotherapy, speech pathology, and assessments.
The No-Flexibility Rule
Unlike Core, you cannot move money between Capacity Building sub-categories. The money in "Support Coordination" stays in support coordination. The money in "Improved Daily Living" stays in therapy.
This means you need to use each sub-category for its intended purpose. If you've got money sitting unused in one Capacity Building area, you can't redirect it to another. But you can raise this at your plan review as evidence that your funding needs adjusting.
Capital Supports: The Big Purchases
Capital Supports covers larger, one-off purchases. You won't have this in every plan, only when you need specific equipment or modifications.
What Capital Supports Pays For
There are two sub-categories:
Assistive Technology - equipment that helps you with daily tasks because of your disability. This includes things like wheelchairs, specialised beds, communication devices, vehicle modifications, and assistive technology over $1,500. Items under $1,500 usually come from your Core Supports (consumables).
Home Modifications - changes to your home to make it accessible. Ramps, bathroom modifications, widened doorways, and other structural changes.
This category also includes Specialist Disability Accommodation (SDA) for people who qualify.
How Capital Supports Works
Capital funding usually requires quotes and sometimes assessments before you can purchase. For example, if you need a new wheelchair, your occupational therapist would do an assessment, you'd get quotes from suppliers, and your support coordinator or plan manager would help process the purchase.
The NDIA often requires pre-approval for higher-cost items, so don't buy first and claim later. Check with your coordinator or plan manager before making big purchases.
A Practical Example
Let's say Sarah has an NDIS plan with the following:
Core Supports: $35,000- Assistance with Daily Life: $25,000 (support workers for personal care and household help)- Transport: $3,000 (taxi trips to appointments)- Social and Community Participation: $7,000 (support worker for community activities)
Capacity Building: $12,000- Support Coordination: $3,500 (her support coordinator at NIR)- Improved Daily Living: $8,500 (occupational therapy and physiotherapy)
Capital Supports: $5,000- Assistive Technology: $5,000 (a new mobility device)
Sarah can move money between her Core categories (for instance, if she spends less on transport, she can put more towards social activities). But she can't move her therapy money into support coordination or vice versa. And her assistive technology funding is locked to that purchase.
Common Questions About NDIS Funding
What happens if I don't use all my funding?
Unused funding doesn't roll over to your next plan. It expires at the end of your plan period. This is why budget tracking is so important, and why having a support coordinator who watches your spending can save you from leaving money on the table.
Can I use NDIS funding for things not in my plan?
No. NDIS funding must be used for supports that are reasonable and necessary, related to your disability, and in line with your plan. Your support coordinator can help you work out what falls within the rules.
What if I need more funding mid-plan?
If your circumstances change significantly, you can request a plan review before your scheduled one. You'll need evidence that your needs have changed.
Who decides what goes in each category?
The NDIA decides your plan budgets based on your goals, support needs, and evidence. But you can influence this by being clear about what you need and providing strong evidence at your plan review.
Can my plan manager move money between categories for me?
No. Plan managers process payments within the rules of your plan. They can't change your budget allocations. Only the NDIA can change your plan through a review.
Tips for Getting the Most From Each Category
Core Supports
- Use the flexibility to shift funding where you need it most
- Track spending monthly so you don't run short at the end of your plan
- If you're consistently underspending, tell your coordinator so they can adjust at review time
Capacity Building
- Book therapy sessions early in your plan, therapists get booked up
- Use your support coordination funding from day one, don't wait until your review is three weeks away
- Ask your therapists for regular progress reports (you'll need them at review time)
Capital Supports
- Get assessments done early, the approval process can take time
- Get multiple quotes where possible
- Don't purchase before getting approval, check with your coordinator first
Not Sure How to Read Your Plan?
That's exactly what a support coordinator is for. At NIR | Navigator In Reach, we sit down with you and walk through your plan in plain English. We'll show you what's in each budget, what you can spend it on, and how to make sure nothing goes to waste.
Book a free 20-minute intro call and we'll go through your plan together.
Ready to Make Sense of Your NDIS Plan?
Whether your plan just arrived or your review is coming up, we help NDIS participants across Adelaide and South Australia actually use their funding. No confusing jargon, no run-around, just clear support from a registered provider who gets it.
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