NDIS Funding Categories Explained: Core Supports, Capacity Building & Capital (2026 Guide)

The Three NDIS Funding Categories

Every NDIS plan organises funding into three distinct categories, each serving a different purpose in the participant's life. These categories — Core Supports, Capacity Building Supports, and Capital Supports — are defined under the National Disability Insurance Scheme Act 2013 (NDIS Act) and elaborated in the NDIA's operational guidelines.

Understanding which category a support falls under matters enormously for providers. It determines which registration group you need, what price limits apply, how much documentation flexibility exists, and what happens when you claim. Getting this wrong is not a minor administrative issue — it can trigger a compliance notice, repayment demand, or suspension of payment from the NDIA portal.

Core Supports: What They Fund and How They Work

Core Supports is the largest and most flexible of the three categories. Most participants have Core funding, and for SIL (Supported Independent Living) providers, this is the primary funding line they deliver against every single shift.

The Core Supports category contains four support lines, each with its own support purpose number:

01 — Assistance with Daily Life (Support Purpose: Daily Activities)

This is the most commonly used Core support line. It funds personal care, domestic assistance, supervision, and any support that helps a participant with daily living tasks in their home or SIL accommodation. For SIL providers, the vast majority of shifts are claimed under support catalogue line 01_002_0107_1_1 (Assistance in Shared Living Accommodation) or similar daily activity codes.

Key supports funded under Assistance with Daily Life include:

• Personal hygiene, dressing, and grooming support
• Meal preparation and domestic cleaning assistance
• Overnight support and active overnight shifts
• Supervision and safety monitoring in the home
• Complex health supports delivered by trained staff (where registered)
• SIL — Supported Independent Living in shared or individual accommodation

03 — Consumables

Consumables fund low-cost, everyday items that a participant needs because of their disability. This includes continence aids, wound care products, and low-cost assistive technology (items under $1,500). Providers delivering continence or wound care supports should understand that consumable items must be clinically appropriate and directly related to the participant's disability support needs.

04 — Assistance with Social, Community and Civic Participation

This support line funds community access activities — supporting participants to attend recreational activities, social events, and community groups. It covers the worker time to accompany a participant, not the cost of the activity itself (e.g., entry fees). Providers often confuse this with Daily Activities; the key distinction is that the support involves taking the participant out of the home into the community.

Providers must document the community purpose in every shift note when claiming under this line. A note that says only "went to park" will not satisfy an auditor — the note should reference which NDIS plan goal the community activity supports.

Core Supports Flexibility (Flex Funding)

One of the most significant features of the Core Supports category is flex funding. Participants can use their Core budget across all four support lines without a plan variation, as long as the total does not exceed the Core Supports budget. A participant can shift money from Consumables to Daily Activities if they need more personal care support this month, for example.

This flexibility does not extend across categories. A participant cannot move Core Supports money into Capacity Building, and they cannot use Capital Supports funding to pay for a worker's time.

Capacity Building Supports: The Nine Support Lines

Capacity Building Supports are designed to build skills, independence, and community participation over time. Unlike Core Supports, Capacity Building funding is not flexible — money allocated to one support purpose cannot be used for another, even within the Capacity Building category. The NDIA intends each Capacity Building line to work toward specific outcomes.

There are nine Capacity Building support lines:

07 — Support Coordination

This is perhaps the most commonly misunderstood Capacity Building line. Support Coordination funding (registration group 0106) pays for a support coordinator to help participants implement their NDIS plan — connecting them with providers, resolving service issues, and building informal support networks. Specialist Support Coordination (registration group 0132) is a separate, higher-intensity service for complex situations.

02 — Improved Living Arrangements

Funds supports that help a participant find and maintain appropriate housing. This may include assistance navigating SIL applications, housing search support, or tenancy skills development. For SIL providers, this line is often relevant at the point a participant is transitioning into a SIL arrangement.

04 — Increased Social and Community Participation

Not to be confused with Core 04 (Assistance with Social, Community and Civic Participation). The Capacity Building version funds programs and skill development that increase a participant's long-term ability to engage with their community — not just accompanying them on a single outing.

05 — Finding and Keeping a Job

Funds employment-related supports, including job search assistance, supported employment programs, and workplace modifications support. Providers delivering disability employment services need specific registration to claim under this line.

06 — Improved Health and Wellbeing

Funds allied health services, dietetics, and exercise physiology specifically related to the participant's disability. This line is not for general health care — it covers supports that build the participant's capacity to manage their health in relation to their disability.

07 — Improved Learning

Distinct from Support Coordination despite sharing the number, this line funds transition planning from school to adult life and supports related to educational settings. It is less commonly used for adult SIL participants but important for providers working with young people transitioning to NDIS.

08 — Improved Daily Living

This is one of the larger Capacity Building lines, funding therapeutic supports that build daily living skills. Occupational therapy, speech pathology, psychology, and physiotherapy are all delivered under this line when their purpose is skill-building. Providers delivering allied health services claim here, not under Core Supports.

09 — Improved Life Choices

Funds plan management services (when a participant uses a plan manager) and supports for improved decision-making. Plan managers claim their fees under this line — it is not available to direct support providers.

11 — Improved Relationships

Funds behaviour support services and social skills development programs. Behaviour support practitioners who provide Positive Behaviour Support (PBS) plans claim under this line. Providers delivering supports under a PBS plan should be aware of the interaction between this line and the need for an NDIS-registered behaviour support practitioner.

Capital Supports: Assistive Technology, Home Modifications and SDA

Capital Supports fund one-off, higher-cost items that a participant needs because of their disability. Unlike Core and Capacity Building supports, Capital Supports are almost always stated — meaning the specific item is written into the plan and cannot be substituted for something else without a plan variation.

There are two main support lines within Capital Supports:

Assistive Technology (AT)

Assistive Technology funding covers equipment and devices that help a participant manage their disability. Items range from low-cost aids (which may actually be funded under Core Consumables if under $1,500) through to complex powered wheelchairs, communication devices, and hospital-grade beds costing tens of thousands of dollars.

The NDIS distinguishes between assistive technology support items by complexity:

• Low-cost AT (under $1,500): Often funded under Core Consumables
• Mid-range AT ($1,500–$15,000): Funded under Capital AT, may require AT advisor assessment
• Complex AT (over $15,000): Requires formal AT assessment report from a qualified practitioner

Providers that supply assistive technology — including disability equipment suppliers — need to ensure they are registered in the appropriate registration group and that any equipment supplied matches the specific item quoted in the participant's plan.

Home Modifications

Home modifications fund structural changes to a participant's home to improve safety and accessibility — grab rails, ramps, wet area modifications, and similar works. These are funded as Capital supports and require an occupational therapist's assessment and recommendation. Providers who arrange home modifications on behalf of participants must ensure appropriate quotes, OT sign-off, and NDIA approval are in place before commencing work.

Specialist Disability Accommodation (SDA)

SDA is a separate and complex funding line for participants with extreme functional impairment who require specialist housing. SDA payments go to the SDA provider (the property owner/manager), not to the SIL provider delivering daily supports. It is important that SIL providers understand that SDA and SIL are separate funding lines — one pays for the accommodation, the other pays for the support workers in that accommodation.

What Providers Must Document for Each Category

Provider documentation requirements vary by category. Under the NDIS (Provider Registration and Practice Standards) Rules 2018, registered providers must maintain records that demonstrate supports were delivered as planned, were reasonable and necessary, and align with participant goals. The NDIS Practice Standards Core Module outcomes — particularly Outcome 2.3 Information Management and Outcome 2.4 Complaints Management — set the framework for record-keeping obligations.

For Core Supports in particular, every shift note must contain:

• Date, start time, and end time of the shift
• Name of the support worker
• Name of the participant
• What supports were delivered (not just "assisted with daily tasks")
• How the participant engaged and any observations
• Reference to at least one NDIS plan goal the support contributed to
• Any incidents, risks, or changes in circumstances

Writing good shift notes is one of the most common pain points for support workers. The free NDIS Notes Rewriter tool can help your team turn rough shift notes into NDIS-compliant, goal-linked documentation in seconds.

Common Billing Mistakes and How to Avoid Them

The NDIS Commission's compliance monitoring has increasingly focused on provider billing practices. In 2024–25, the Commission identified overbilling and incorrect support categorisation as two of the most common compliance issues affecting small providers. These mistakes are often unintentional — staff selecting the wrong support catalogue code, or misunderstanding which category applies — but they carry serious consequences.

Mistake 1: Claiming Community Access Under Daily Activities

When a support worker takes a participant to a community activity, the claim should be under Core 04 (Social, Community and Civic Participation), not Core 01 (Daily Activities). Using the wrong support purpose code can result in repayment demands if the error is identified in an audit. Always match the support catalogue code to the purpose of the activity, not the worker's role.

Mistake 2: Claiming Allied Health Under Core Supports

Physiotherapy, occupational therapy, psychology, and speech pathology are Capacity Building supports (usually Improved Daily Living, line 08). These cannot be claimed under Core Supports, even if the worker who delivers them is employed by a Core Supports organisation. Providers employing allied health staff must ensure those staff claim under the correct registration group and support category.

Mistake 3: Charging Above the Price Limit

The NDIS Pricing Arrangements and Price Limits (formerly the Price Guide) sets maximum prices for most support items. Providers cannot charge above these limits for NDIS-managed or plan-managed participants. Self-managed participants can negotiate any price, but providers should document agreed rates in service agreements. The 2025–26 Price Limits are published on the NDIS Commission website and are updated annually — providers must check they are using current rates.

Mistake 4: Claiming Non-Face-to-Face Time Without Documentation

Some support categories allow providers to claim for non-face-to-face time — report writing, care planning, coordination. However, this must be:

• Included or allowed under the applicable support catalogue item
• Documented with time records showing what the non-contact activity was
• Within the limits set by the Price Limits document
• Disclosed to the participant in the service agreement

Mistake 5: Claiming for Cancellations Without a Policy

The NDIS rules allow providers to claim short-notice cancellation fees (up to 100% of the agreed support price within a specified timeframe). However, claiming cancellation fees requires a compliant service agreement that discloses the cancellation policy and the specific timeframes. Providers without a documented, participant-signed service agreement risk having cancellation claims rejected.

How Funding Categories Relate to NDIS Registration Groups

NDIS registration groups determine which supports a provider is approved to deliver. Each registration group maps to specific support catalogue items within the funding categories. A provider registered for one group cannot claim for supports in another group, even if they believe they are capable of delivering them.

For providers delivering Supported Independent Living, the key registration groups are typically 0107 (Assistance with Daily Life) and often 0125 (Community Participation). Both require a certification audit — the more intensive and costly of the two NDIS audit types. This is why having complete, well-organised policy documentation before your audit is so important.

For a comprehensive guide to registration groups and audit requirements, see our article on NDIS registration groups explained.