Countdown to Change: NDIS Core Funding Flexibility for Allied Health Ends June 2025
For several years, NDIS participants have enjoyed beneficial flexibility, allowing them to use Core funding for therapeutic supports such as occupational therapy, speech pathology, and physiotherapy. Typically, these therapy services fall under Capacity Building supports.
To better understand these terms, let’s quickly clarify:
Core Supports are designed for everyday needs, including basic daily activities, community participation, consumables, and transport.
Capacity Building Supports are intended to build longer-term skills, promoting greater independence and functionality—exactly what therapies like occupational therapy, speech pathology, and physiotherapy aim to achieve.
NDIS Core Funding changes
However, it’s important to highlight that this flexibility will soon be coming to an end. From 1 July 2025, the NDIS will officially remove the option to use Core funding for therapeutic services. From that date forward, these essential allied health services must exclusively be funded through the Capacity Building budget.
Why the change? The shift aims to enhance clarity and consistency across the scheme. By ensuring therapies are funded solely through Capacity Building, the NDIS seeks to better reflect the genuine therapeutic needs of participants, leading to more accurate and targeted funding allocations.
While this might initially seem like a minor administrative adjustment, its implications are significant. If you’re an NDIS provider or involved in managing participant plans, this change will directly affect how you plan and deliver services.
How to achieve clinical excellence
Once the change takes effect, providers will no longer be able to bill therapies against Core funding. This makes proactive planning crucial. Providers and participants should review current NDIS plans carefully to ensure sufficient Capacity Building funds are allocated. Previously, billing therapy from Core funding required explicit participant agreement to use their Core funds in this way. If you find that Capacity Building allocations are inadequate, now is the ideal time to engage with NDIS planners or support coordinators to discuss increasing those allocations.
It’s essential that participants, families, and caregivers are fully aware of this impending change. Without proper preparation, there could be disruptions in accessing therapy services—services which are essential to daily lives and long-term development.
Here’s a clear breakdown of what you need to remember:
- Therapy services funded through Core supports will no longer be available after 30 June 2025.
- From July 2025 onwards, occupational therapy, speech pathology, and physiotherapy must be funded exclusively from Capacity Building budgets.
- Immediate preparation is key to ensuring uninterrupted access to these vital services.
So, what’s your next step?
Providers: initiate conversations with your clients immediately. Clearly communicate these changes, review funding arrangements, and assist clients through the transition process.
Participants and families: don’t wait. Now is the time to review your NDIS plans, confirm funding allocations, and proactively engage with your providers and support coordinators.
Navigating change can often feel daunting, but clarity and proactive preparation can make all the difference. By staying informed and preparing early, everyone involved can smoothly adapt to these upcoming changes, ensuring continued access to essential allied health supports.
For further details, visit the official NDIS website at www.ndis.gov.au
About the author
Nigel is a Managing Director at KEO Care, committed to creating great outcomes—not excuses. With expertise in quality control, financial analysis, budgeting, auditing, ACFI, NDIS, and procurement, he ensures KEO’s operations run smoothly behind the scenes.
With a strong background in project management, Nigel is known for his meticulous approach, sharp decision-making, and reliable leadership. He is passionate about building a supportive, enriching environment for the KEO team, believing that a happy, empowered team is key to delivering the best care for clients.
