NDIS Funding Categories Explained (2026): A Simple Guide to Core, Capacity Building & Capital Supports (2026)
Knowing how your funding is organised will make it much easier to understand your NDIS plan. Instead of providing one large budget, the National Disability Insurance Scheme (NDIS) separates your funding into different categories. Each category is designed for a specific purpose and can only be used for eligible disability-related supports.
Since the introduction of the NDIS PACE system (2023), participant plans may include four funding categories:
- Core Supports
- Capacity Building Supports
- Capital Supports
- Recurring Supports
Every NDIS plan is different. You may not receive funding in all four categories because your plan is tailored to your disability, personal goals, and the supports you need to live more independently.
What Are NDIS Funding Categories?
NDIS funding categories are separate budgets within your plan. Each category is designed to cover a different type of disability-related support. Together, they help you build independence, achieve your goals, and take part more confidently in everyday life.
Each funding category has its own rules about what it can be used for. While some categories give you more flexibility, others are only available for specific approved supports. Understanding these categories before making a purchase can help you use your funding correctly and avoid rejected claims.
A Quick Overview of the Four NDIS Funding Categories
| Funding Category | Purpose | Common Examples |
| Core Supports | Everyday disability-related support | Personal care, support workers, cleaning, consumables, transport, community participation |
| Capacity Building Supports | Build skills and independence | Therapy, employment supports, support coordination, life skills training |
| Capital Supports | High-cost equipment and modifications | Wheelchairs, assistive technology, home and vehicle modifications |
| Recurring Supports | Ongoing transport funding | Recurring transport payments for eligible participants |
1. Core Supports
Core Supports help participants manage everyday activities and maintain independence. This is often the most frequently used budget because it covers many of the daily supports people rely on.
One of the key benefits of Core Supports is that some funding can be flexible. Depending on your plan, you may be able to use your budget across different eligible supports, provided they meet NDIS rules.
What Core Supports May Cover
Daily Personal Activities – Showering and bathing, Dressing and grooming, Toileting assistance, Eating and drinking support, Medication assistance
Assistance Around the Home – Household cleaning, Laundry, Dishwashing, Bed making, Gardening, Lawn maintenance
Community Participation – Support workers for community outings, Shopping assistance, Recreational activities, Social participation, Assistance attending appointments
Consumables – Continence products, Disposable gloves, Wound care products, Catheters, Daily disability-related consumables
Low-Cost Assistive Technology –Walking sticks, Shower stools, Grab rails, Simple communication aids, Basic mobility equipment
Transport Supports – Some participants may receive transport support within their plan to help them travel to work, education, or community activities.
Who Benefits Most from Core Supports?
Core Supports are ideal for participants who need ongoing assistance with everyday activities due to their disability. Whether it’s help with personal care, household tasks, getting out into the community, or daily routines, these supports are designed to make everyday life easier while promoting greater independence and participation.
2. Capacity Building Supports
Capacity Building Supports focus on helping participants develop skills rather than providing ongoing daily assistance. The goal is to increase independence over time so participants can achieve personal, educational, employment, and social goals.
Unlike Core Supports, Capacity Building funding is generally allocated to specific support categories and cannot usually be spent elsewhere.
Capacity Building Support Categories
Improved Daily Living — Professional therapy services such as: Occupational therapy, Physiotherapy, Speech pathology, Psychology, Exercise physiology, Dietitian services (where disability-related)
Improved Health and Wellbeing – Encourage healthy routines, physical activity, and overall wellbeing.
Increased Social and Community Participation – Programs that help participants: Build confidence, learn new skills, join community activities, increase independence
Employment Support – Finding and Keeping a Job, Workplace assistance, Resume and interview support, Job coaching
Why Capacity Building Supports Matter
Unlike supports that assist with everyday tasks, Capacity Building Supports are designed to help you develop the skills and confidence to do more on your own. By investing in therapies, training, and skill development, these supports can reduce your reliance on daily assistance over time and help you achieve greater independence in everyday life.
3. Capital Supports
Capital Supports provide funding for higher-cost disability-related items that improve your independence, accessibility, and quality of life. This funding is typically used for specialised equipment, assistive technology, major home or vehicle modifications, and other significant purchases that support your long-term disability needs. Funding is generally approved for specific items and cannot be used for unrelated purchases.
These supports usually involve higher costs and often require:
- Occupational therapist assessments
- Clinical evidence
- Functional assessments
- Supplier quotations
- NDIA approval (where required)
Capital Supports may fund
Mobility Equipment – Manual wheelchairs, Powered wheelchairs, Mobility scooters, Walking frames, Rollators, Standing frames, Patient hoists, Pressure cushions
Communication Equipment – Speech-generating devices, Communication tablets, AAC devices, Eye-gaze technology, Switch access equipment
Daily Living Equipment – Adjustable beds, Pressure care mattresses, Transfer boards, Bathroom equipment
Home Modifications – Wheelchair ramps, Accessible bathrooms, Stair lifts, Ceiling hoists, Widened doorways, Handrails, Accessible kitchens
Vehicle Modifications – Hand controls, Wheelchair lifts, Vehicle ramps, Wheelchair restraint systems, Modified seating, Vehicle access modifications
Specialist Disability Accommodation (SDA) – Where eligible, Capital Supports may include funding for Specialist Disability Accommodation designed for people with very high support needs.
4. Recurring Supports
Recurring Supports are the newest NDIS funding category introduced under the PACE system. At present, this category is primarily used to provide Recurring Transport funding for eligible participants who cannot use public transport because of their disability.
Unlike other NDIS funding categories, Recurring Supports are not included in every plan. They are only provided when the NDIA determines that a participant meets the eligibility criteria for transport funding.
What Recurring Transport Funding Can Be Used For
- Work
- School
- University
- TAFE
- Therapy appointments
- Medical appointments
- Community activities
- Social events
- Recreational programs
- Volunteer work
Can You Transfer NDIS Funding Between Categories?
Generally, funding can’t be moved from one category to another because each NDIS funding category has a specific purpose and its own funding rules. However, some Core Supports budgets may offer flexibility, allowing eligible funding to be used across certain Core Support categories if it continues to meet NDIS requirements.
If your circumstances or support needs change significantly during your plan, you may need to request a plan reassessment. This allows the NDIA to review your needs and adjust your funding where appropriate, rather than transferring funds between categories.
FAQs
Do all participants receive all four funding categories?
No. Your NDIS plan is tailored to your individual needs, so you may receive funding in one, several, or all four categories.
Can I use Capital Supports to pay for therapy?
No. Therapy services are usually funded under Capacity Building Supports, while Capital Supports are for approved equipment and modifications.
What happens if I use funding incorrectly?
If a purchase doesn’t meet NDIS requirements or is claimed from the wrong budget, the claim may be rejected, and you may need to pay the cost yourself.