Written by the Good Company Disability Services team, NDIS support providers in Perth and Melbourne. Reviewed October 2026.
NDIS funding categories are the groups your plan funding is sorted into, so you can see what each part of your budget is for. Every NDIS plan is built from four support budgets (core, capacity building, capital and recurring supports), and each budget holds support categories such as assistance with daily life or finding and keeping a job. Knowing which categories are flexible helps you get the most from your plan.
How does NDIS funding work?
The NDIS funds supports that are reasonable and necessary. This means a support has to relate to your disability, help you work towards your goals, be value for money and be likely to work for you. It also has to be one of the NDIS supports set out in NDIS law, or an approved replacement support.
Your funding is then organised in three layers:
- Support budgets: the big buckets, such as core supports.
- Support categories: the groups inside each budget, such as consumables.
- Support items: the specific supports you buy. Each item has a code and a price limit.
If your plan is plan-managed or NDIA-managed, providers claim using the item code. If you self-manage, the NDIA’s guide to NDIS support budgets says you can claim at the category level without a code. Most plans don’t have money in every category.
What are the NDIS budget categories?
Many people still talk about three NDIS budgets: core, capacity building and capital. The NDIA now describes four support budgets, because recurring transport has a budget of its own. Here’s how they compare.
| Budget | What it’s for | Can you move money around? |
|---|---|---|
| Core supports | Everyday activities and getting involved in your community | Mostly yes, across core categories |
| Capacity building supports | Building skills and independence | No, funding is stated for each category |
| Capital supports | Higher-cost assistive technology, home modifications and specialist disability accommodation (SDA) | No, funding is stated and may need quotes |
| Recurring supports | Regular transport funding | Transport only |
What are core supports?
Core supports help you with everyday activities and getting involved in your community. The core budget can include three main categories:
- Assistance with daily life: help from support workers with daily tasks, such as cleaning, cooking and yard maintenance.
- Consumables: everyday items you need because of your disability, like continence products, plus low-cost assistive technology such as a non-slip bath mat.
- Assistance with social, economic and community participation: support workers who help you spend time in your community, join groups and follow your interests.
Core funding is flexible. You can spend your total core amount across and within these categories, as long as you buy NDIS supports that fit your plan. When short term accommodation is in your plan, it’s included as flexible funding in your core budget too.
Some core supports work differently. The NDIA’s support categories factsheet lists home and living supports, such as supported independent living (SIL), as stated supports, which can only be used as described in your plan.
What are capacity building supports?
Capacity building supports help you build skills so you can do more for yourself and work towards your goals. This budget can include funding in up to nine categories:
- Support coordination
- Improved living arrangements
- Increased social and community participation
- Finding and keeping a job
- Improved relationships
- Improved health and wellbeing
- Improved learning
- Improved life choices (this is where plan management funding sits)
- Improved daily living (assessments, training and therapies)
Capacity building funding is stated. You can’t move money from one capacity building category to another, and you need to buy the kinds of supports described under each category. You still have some choice inside a category. For example, therapy funding is shown as one total amount, so you can use it for the therapies that suit your needs, such as occupational therapy or physiotherapy.
For plain examples of every category, read our guide to NDIS capacity building supports.
What are capital supports?
Capital supports cover one-off and higher-cost items. There are two main categories:
- Assistive technology: equipment that supports mobility, independence, communication and inclusion, such as a powered wheelchair or vehicle modifications. These items often need reports, assessments or quotes.
- Home modifications and specialist disability accommodation (SDA): changes to your home so you can live more independently, and SDA if you need specialist housing.
Capital funding is stated, so you can’t move money between capital categories. Your plan will say what the funding is for and whether you need a quote. Repairs and rental of assistive technology now sit in a separate category called assistive technology repairs and rental.
What are recurring supports?
The recurring supports budget has just one category: recurring transport. If you’re eligible, it helps with the cost of getting to work, study, day programs, and community, social and leisure activities. It can be used for taxis, rideshare and other private travel. The funding can be paid regularly into your nominated bank account, or you can claim it through the participant portals or the my NDIS app.
What is the difference between flexible and stated supports?
Your plan shows one of these two lines next to each support.
“This is a flexible support”
You choose which supports to buy, how many, and how to spread the money across categories in the same budget. You can’t use it for a different budget or spend more than your total, and every support still has to be reasonable and necessary.
“This is a stated support”
You can only use the funding for the support described in your plan. You still choose your provider and how many supports you buy within that amount. If it also says “quote required”, the NDIA needs quotes or specialist reports before the funding is released.
For example, if you need less help at home and more help getting out, you can shift flexible core funding from assistance with daily life to social and community participation. Stated capacity building funding for finding and keeping a job can’t be used in another category.
What is changing with NDIS funding categories?
Budget changes from 1 October 2026
Under the new NDIS laws, the NDIA says budgets are being reduced for two support categories: Social, Economic and Community Participation, and Improved Daily Living Skills. This applies to plans created or reassessed from 1 October 2026, and plans renewed from 1 February 2027. Some groups of supports in these categories are not affected, including employment supports, disability-related health supports and high intensity supports. The NDIA says the impact will be different for every participant.
We explain what this means for families in NDIS changes 2026: what families need to know.
New framework planning from April 2027
The NDIA’s summary of legislation changes says new framework planning will start rolling out from April 2027. New framework plans will have:
- a flexible budget
- a small number of stated supports, which must only be used for those supports
- a budget worked out using a new method, informed by a support needs assessment (a guided conversation with a trained assessor)
The rules for the budget method and stated supports were still being consulted on in 2026 (see the government’s table of new framework planning rules). The NDIA hasn’t yet published how support categories will appear in these plans. It has said children under 18 won’t be part of the first changes, and current plans stay in place until you move across.
Which Good Company services fit each budget?
Which budget pays depends on what the support is for and how your plan is written. Here’s where our services usually fit, based on the NDIA’s category descriptions.
| What you want help with | Budget it usually relates to | Our service |
|---|---|---|
| Getting out into your community with a support worker | Core: assistance with social, economic and community participation | Social and community participation |
| Overnight time apart from your usual carers | Core (flexible) | STA and assistance including respite |
| Building work skills, career planning and moving from school to work | Capacity building: finding and keeping a job | Employment support and SLES |
| Understanding your plan and choosing providers | Capacity building: support coordination | Support coordination and specialist support coordination |
| Learning everyday skills to be more independent | Capacity building (the category depends on your plan) | Self-care skills |
| Working towards your goals with a mentor | Core or capacity building, depending on your goals and plan | NDIS mentoring |
Not sure where a support fits? Your plan manager or support coordinator can check your plan with you.
How Good Company can help
Our support workers and mentors help people build skills, get out into the community and work towards their goals. We have in-person teams in Perth and Melbourne, including mentors on the Mornington Peninsula, and offer remote support by phone or video in other states.
Talk to us about NDIS support coordination, or find local help through our Perth disability services or Melbourne disability services. Live elsewhere? Ask about our NDIS remote services.
Frequently asked questions
What are the four NDIS budget categories?
The four support budgets are core supports, capacity building supports, capital supports and recurring supports. Core covers everyday activities and community participation. Capacity building helps you build skills and independence. Capital covers higher-cost assistive technology, home modifications and SDA. Recurring covers regular transport funding. You only get funding in the budgets you need, so your plan may not include all four.
Can I move money between NDIS budgets?
No. Flexible funding can be spread across categories within the same budget, but it can’t be moved to a different budget. Core funding is mostly flexible across its categories. Capacity building and capital funding are stated, so you can’t move money between their categories. If your needs change in a big and ongoing way, you can ask the NDIA about a plan variation or reassessment.
Is support coordination core or capacity building?
Support coordination is a capacity building category, and it’s usually time-limited. A support coordinator helps you understand your plan, choose providers and build confidence managing your supports. There are three levels: support connection, support coordination and specialist support coordination, which is for more complex situations.
What is the difference between core and capacity building supports?
Core supports help you do everyday things and take part in your community now, often with a support worker. Capacity building supports help you learn skills so you can do more for yourself over time. Core funding is mostly flexible across its categories, while capacity building funding is stated, so each amount must be used in its own category.
Will NDIS funding categories change with new framework planning?
New framework planning is due to roll out from April 2027. New plans will have a flexible budget and a small number of stated supports, with the budget set using a support needs assessment. The NDIA hasn’t yet published how categories will appear in these plans. Your current plan keeps working until you move to the new way of planning.
Want to talk through how your plan budgets could work for you? Call our team on 08 9334 6995 (office hours 9am to 5:30pm) or contact us online and we’ll get back to you.
