What Does NDIS Funding Cover?
When participants receive their first NDIS plan, the relief is immediate.
Funding has been approved. Support is possible.
But then confusion sets in.
You log into the portal and see numbers under different categories:
- Core
- Capacity Building
- Capital
You see budgets but you don’t fully understand what they mean.
Can you use it for cleaning?
Is therapy included?
What happens if you spend it incorrectly?
Will you get in trouble for using the wrong category?
Many participants are afraid to touch their funding because they don’t want to make a mistake.
The good news is this: NDIS funding is flexible when used correctly.
You are not expected to memorise policy documents. You simply need to understand how the categories work.
This guide explains exactly what you can and cannot use your funding for.
The 3 Main NDIS Funding Categories
Every NDIS plan is divided into three main sections:
- Core Supports
- Capacity Building Supports
- Capital Supports
Each category serves a different purpose.
Understanding these categories helps you use your plan properly and avoid funding issues.
Let’s break them down simply.
Core Supports (Daily Living Help)
Core Supports are the most commonly used funding category.
This is the everyday assistance that helps participants live safely and independently.
Core funding is usually flexible within its category and covers ongoing daily needs.
Examples of Core Supports
- Personal care
- Showering and hygiene assistance
- Dressing support
- Meal preparation
- Cleaning related to disability
- Transport to appointments
- Community participation
- Support worker supervision
Core supports are about helping you manage daily life safely.
These supports are commonly delivered through daily living assistance services in Perth.
Core funding is often the largest part of a participant’s plan because it covers recurring support needs.
Capacity Building Supports (Skill Development)
Capacity Building funding is different.
Instead of providing daily assistance, it focuses on building long-term independence.
This category funds services that help participants improve skills over time.
Examples of Capacity Building Supports
- Speech therapy
- Occupational therapy
- Psychology
- Behaviour support
- Support coordination
- Employment assistance
- Social skills training
- Skill development programs
This funding improves independence rather than daily help.
For example, therapy may help a child develop communication skills, reducing long-term reliance on support workers.
Capacity Building funding is usually less flexible than Core. It must be used for the specific purpose it was allocated.
Capital Supports (Equipment & Home Changes)
Capital Supports fund higher-cost items that are usually one-off purchases.
These supports are designed to increase safety, accessibility, and independence.
Examples of Capital Supports
- Wheelchairs
- Communication devices
- Assistive technology
- Bathroom modifications
- Vehicle modifications
- Specialised beds
These purchases usually require:
- Quotes
- Professional recommendations
- NDIA approval
For more detail on equipment categories, you can review the official assistive technology supports list provided by the NDIS.
Capital funding is generally “stated,” meaning it must be used exactly as described in your plan.
What NDIS Does NOT Cover
Understanding what NDIS does not fund is just as important as knowing what it does.
NDIS funding must meet the “reasonable and necessary” rule.
The NDIS does not cover:
- Groceries
- Rent or mortgage
- Entertainment expenses
- Vacations
- Standard medical treatment
- Cosmetic services
- Gym memberships (unless part of therapy or disability-specific program)
Why?
Because these are everyday living expenses that everyone pays, regardless of disability.
NDIS funding is not a replacement for general living costs. It only covers disability-related supports.
This section is important because misuse of funding can lead to audits or repayment requests.
When in doubt, always check before spending.
Real Examples of How Participants Use Funding
Understanding NDIS funding examples in real life makes the categories clearer.
Scenario 1: Child with Autism
Core Supports:
- Support worker for school transitions
- Community participation outings
Capacity Building:
- Speech therapy
- Behaviour support
Capital:
- Communication device
The goal is both daily assistance and long-term skill development.
Scenario 2: Adult with Physical Disability
Core Supports:
- Personal care assistance
- Cleaning support
- Transport to appointments
Capacity Building:
- Physiotherapy
Capital:
- Wheelchair
- Bathroom rail modifications
Here, funding supports mobility, safety, and physical wellbeing.
Scenario 3: Participant with Psychosocial Disability
Core Supports:
- Support worker for supervision
- Assistance attending appointments
Capacity Building:
- Psychology
- Recovery coaching
- Support coordination
The focus is stability, independence, and long-term recovery.
These real-life scenarios show how funding categories work together.
How To Avoid Running Out Of Funding Early
One of the biggest concerns families have is overspending Core supports too quickly.
Here are practical steps to avoid funding shortages:
- Track spending monthly
- Review remaining budget regularly
- Prioritise essential supports first
- Avoid unnecessary duplication of services
- Keep communication open with providers
Many participants review this with a NDIS support coordinator in Perth to ensure funding is used strategically.
Planning ahead prevents stress later in the plan period.
Flexible vs Stated Supports
This is where many participants get confused.
Some funding categories are flexible. Others are not.
Flexible Supports
Core funding is often flexible within its category.
You can usually move funding between Core line items if they are disability-related.
Stated Supports
Capital items and some Capacity Building supports are “stated.”
This means:
- They must be used exactly as described.
- Funds cannot be moved to another purpose.
Understanding whether your supports are flexible or stated prevents accidental misuse.
Always check your plan wording.
Can You Change How Funding Is Used?
Yes but not instantly.
If your needs change, you can request:
- A plan review
- A change of circumstances
- A variation
For example, if you no longer need one therapy but require additional daily support, you may need reassessment.
You can learn more about provider changes and plan flexibility in our guide on changing your NDIS provider in Perth.
Changes are possible but they follow a formal process.
Frequently Asked Questions
1. Can I buy groceries with NDIS?
No. Groceries are considered everyday living expenses and are not funded by the NDIS.
2. Can NDIS pay rent?
No. Rent and housing costs are personal living expenses unless specialised disability accommodation funding is specifically approved.
3. Does NDIS cover gym memberships?
Generally no, unless the gym program is therapy-related and recommended by a qualified professional.
4. What is Core funding used for?
Core funding covers daily assistance such as personal care, cleaning, meal preparation, transport, and community participation.
5. What if I overspend?
If you overspend a category, services may stop until reassessment. It is important to monitor budgets carefully to avoid funding gaps.
Final Thoughts
So, what does NDIS funding cover?
In simple terms, it covers supports that are:
- Directly related to your disability
- Necessary for daily life
- Safe and effective
- Reasonable in cost
It does not replace everyday living expenses.
Understanding the difference between Core, Capacity Building, and Capital supports allows you to:
- Use your funding confidently
- Avoid mistakes
- Plan effectively
- Protect your future funding
When used correctly, NDIS funding is designed to increase independence, safety, and participation not create confusion.
If you’re ever unsure, ask before spending. Clarity now prevents stress later.