What is an NDIS Support Budget?
An NDIS support budget is the total funding allocated in a participant's NDIS plan across the three funding categories — Core Supports, Capacity Building Supports, and Capital Supports. The budget is expressed in dollar amounts and is divided among the support lines within each category.
Budgets are set during the planning meeting based on the participant's assessed support needs, their goals, and the reasonable and necessary test. They are not an entitlement for the participant to spend however they wish — they are a funded allocation for specific types of support, and any spending must be for supports that meet the criteria in the participant's plan.
For providers, the budget determines how much you can claim over the plan period. If a participant has $60,000 in Core Supports and you are their primary SIL provider, that is the total amount that can be claimed across all providers delivering Core supports during that plan period. Understanding the budget limits and monitoring spending throughout the plan period prevents over-servicing and budget exhaustion before the plan review date.
Stated vs Flexible Supports: What's the Difference?
One of the most important distinctions in NDIS budget management is between stated and flexible supports.
Flexible supports
Most Core Supports are flexible. Flexibility means the participant can use the budget across different support lines within the Core category without a formal plan variation. For example, if a participant has $50,000 in Core Supports and needs less community access support than expected this month but more personal care, they can use the Core budget for the personal care without needing NDIA approval.
Key features of flexible supports:
- Can be used across different providers within the same support category
- Can be moved between support lines within the category (Core Supports only)
- Do not require NDIA approval to change how they are used (within the category)
- Participants have maximum control over how and when they use these supports
Stated supports
Stated supports are specifically itemised in the participant's plan and can only be used for the exact purpose described. They cannot be substituted for a different support without a formal plan variation.
Supports are typically stated when:
- The NDIA has approved a specific item (e.g., a particular assistive technology device)
- The participant has expressed a strong preference for a specific service type that the NDIA wants to preserve
- The support has a high cost and the NDIA wants to ensure it is used as intended
- The support is from Capital Supports (almost always stated)
Providers cannot determine on behalf of a participant whether a support is stated or flexible. This information is in the participant's NDIS plan. Always review the participant's plan at onboarding — and after every plan review — to understand which supports are stated and which are flexible. Claiming for a stated support that has been substituted without a plan variation is a billing error.
Understanding the NDIS Price Guide and Support Catalogue (2025–26)
The NDIS Pricing Arrangements and Price Limits (commonly called the Price Guide) is the document that sets maximum prices for NDIS-funded supports. It is updated annually, typically taking effect from 1 July each year. The 2025–26 version applies to supports delivered from 1 July 2025 to 30 June 2026.
Key features of the Price Guide:
- Sets maximum hourly and unit prices for each support catalogue item
- Includes separate rates for weekdays, evenings, Saturdays, Sundays, and public holidays
- Includes rates for different worker qualification levels (Standard, High Intensity) where relevant
- Includes allowances for travel, non-face-to-face supports, and cancellations (with conditions)
- Sets rules about what can be charged, not just how much
The support catalogue is a companion document that lists every available support catalogue item with its code, description, and which category and support line it falls under. Providers must use the correct catalogue item code when claiming — using the wrong code, even for an equivalent support, is a billing error.
How to find the right support catalogue item
Every support delivered under NDIS has a corresponding support catalogue item. To find the right item:
- Identify the support type and the relevant funding category (Core, Capacity Building, Capital)
- Identify the support line within that category (e.g., Core 01 — Daily Activities)
- Search the support catalogue for items that match the support description
- Check the registration group requirements — you must be registered for the group associated with that item
- Check the price limit for that item on the relevant day and time
Using the wrong catalogue code — for example, claiming a community access support under a daily activities code because the daily activities rate is slightly higher — is a compliance risk. Always match the catalogue code to the actual support delivered.
Provider Claiming: Portal, Plan Managers, and Self-Managed
How you claim payment depends on the participant's plan management type. This is covered in detail in our NDIS plan management guide, but the essentials for budget management are:
| Management Type | Claiming Method | Payment Timeline | Budget Visibility |
|---|---|---|---|
| NDIA-managed | myplace provider portal (direct claim) | 2–3 business days | Budget tracked in portal in real time |
| Plan-managed | Invoice to plan manager | 5–10 business days (varies) | Plan manager tracks; may share reports |
| Self-managed | Invoice to participant directly | Agreed with participant (variable) | Participant tracks own budget |
Service bookings for NDIA-managed participants
Before claiming for NDIA-managed participants, a service booking must be in place. A service booking reserves funds in the participant's budget for your organisation and allows the portal to process your claims. Key rules:
- Service bookings must be created before you begin delivering supports
- The booking should not exceed the amount you realistically expect to deliver
- Over-booking (reserving more than you will use) reduces funds available to the participant for other providers
- Under-booking (claiming more than the booking allows) will result in rejected claims
- Service bookings expire when the plan ends — create new bookings for new plans immediately
Non-Face-to-Face Supports: Claiming Rules and Documentation
Some NDIS support catalogue items allow providers to claim for time spent on activities that are not direct face-to-face contact with the participant. This is sometimes called "non-contact time" or "non-direct time." Examples include:
- Writing progress reports and support plans
- Attending multidisciplinary team meetings about a participant
- Researching and connecting with new services on behalf of a participant
- Care coordination activities (for support coordinators)
However, non-face-to-face time can only be claimed when:
- The support catalogue item explicitly allows non-contact claiming
- The non-contact activity directly relates to the participant's NDIS supports
- The time is documented with a record of what activity was undertaken and how long it took
- The participant has been informed (in the service agreement) that non-contact claiming may occur
- The total claimed (face-to-face + non-face-to-face) does not exceed the Price Limits for the item
Claiming non-face-to-face time without documentation, or for activities that are part of normal business operations (rather than participant-specific activities), is a compliance risk that auditors specifically look for.
Travel and Cancellations: NDIS Rules and Documentation
Provider travel
The NDIS allows providers to claim for reasonable travel time and costs when delivering supports to NDIS participants — but the rules are specific and vary by support type. Key travel claiming rules:
- Travel can be claimed for time travelling to the participant (not from)
- Travel rates are set in the Price Guide and are not the same as the support hourly rate
- Kilometres can be claimed at the current ATO rate for vehicle use
- Travel must be disclosed in the service agreement before it is claimed
- Remote and very remote providers have higher allowable travel rates
Cancellation policy
The NDIS allows providers to claim short-notice cancellation fees when participants cancel a support within a specified timeframe. The current rules (2025–26) allow providers to claim up to 100% of the agreed support price for short-notice cancellations — within two clear business days for most supports.
However, the following conditions must be met to claim a cancellation fee:
- The cancellation policy is documented in the signed service agreement
- The participant was informed of the policy before the cancellation occurred
- The cancellation was within the timeframe specified in the policy
- The provider was genuinely unable to find alternative work for the allocated worker
- A record of the cancellation (date, time, method of notification) is maintained
Providers who do not have a signed service agreement with a cancellation policy cannot legally claim cancellation fees. This is one of the strongest reasons to have a compliant, signed service agreement for every participant before delivering any supports.
Helping Participants Monitor Their Budgets
Budget monitoring is primarily the participant's responsibility (or their plan manager's responsibility for plan-managed participants). However, providers have an important role in transparency — particularly for NDIA-managed participants where the provider sees the portal claims in real time.
Best practices for providers:
- Provide participants with regular statements of services delivered and amounts claimed
- Alert participants if their budget is tracking to be exhausted significantly before the plan review date
- Discuss any changes in service delivery that may affect budget spend
- Avoid creating service bookings that are significantly larger than expected spend
- Never create a service booking or claim without the participant's knowledge and consent
Providers must not do plan management for participants without being registered as a plan manager. Advising participants on how to use their entire budget across all providers, managing payments to other providers, or holding the participant's NDIS funds are plan management activities — not support coordination or direct support activities. This requires separate registration under registration group Improved Life Choices.
Common Billing Errors and NDIS Compliance Consequences
The NDIS Commission's compliance monitoring has escalated significantly in recent years. In the 2024–25 financial year, the Commission issued hundreds of compliance notices to providers and pursued repayment of incorrectly claimed funds. The most common billing errors leading to compliance action are:
Error 1: Claiming for supports not delivered
Claiming hours that weren't actually worked — whether through rounding up, claiming for no-shows, or timesheet errors — constitutes fraud. The NDIS Commission has broad powers to investigate and recover funds. Where systemic fraud is found, providers face de-registration and potential criminal charges.
Error 2: Using incorrect support catalogue codes
Claiming under a higher-paid catalogue code than the support actually delivered — for example, billing for complex support worker time for a shift that only required standard assistance — is an overpayment that must be repaid if discovered in audit.
Error 3: Claiming above the Price Limit
For NDIA-managed and plan-managed participants, the price limit is a hard cap. Any amount above the price limit that is claimed must be repaid, plus potential penalty interest.
Error 4: Claiming cancellation fees without a service agreement
Providers without a signed, compliant service agreement cannot claim cancellation fees. Attempting to do so results in the NDIA rejecting or reversing the payment.
Error 5: Non-face-to-face claiming without documentation
Claiming non-contact time without records of what was done will fail audit. If you claim non-face-to-face time, create a contemporaneous record of the activity, its duration, and its connection to the participant's plan.
Need audit-ready policy and template documentation?
The SIL Rescue Kit includes a compliant Service Agreement Template, Shift Notes Template, Financial Management Policy, and 62 other documents — everything you need for your certification audit and ongoing compliance.
Get the SIL Rescue Kit — $297Maintaining Records for Audits: What the NDIS Commission Looks For
During an NDIS certification audit or compliance review, auditors cross-reference your financial records (portal claims, invoices) against your operational records (shift notes, rostering, service agreements). Discrepancies are findings. Findings can result in repayment demands, additional conditions on your registration, or de-registration.
The record-keeping requirements are set out in NDIS Practice Standards Core Module Outcome 2.3 (Information Management) and include:
- A signed service agreement for every participant before services commence
- Shift notes or session records for every support delivered, written contemporaneously
- Rostering and timesheet records showing which worker delivered each shift
- Incident reports filed within required timeframes for every reportable incident
- Complaints register with records of every complaint and its resolution
- Worker screening clearance records for all staff
- Training records showing staff have completed required training
- Copies of participant NDIS plans (with participant consent) used to guide service delivery
Records must be kept for a minimum of seven years (or longer where state legislation requires). Electronic records must be backed up securely. Paper records must be stored securely and protected from unauthorised access.
Good shift notes are the most voluminous and most scrutinised part of your records. The free NDIS Notes Rewriter helps your support workers produce consistent, compliant notes that will hold up to audit review — goal-referenced, objective, and detailed enough to match your portal claims.
For a detailed breakdown of what auditors look for against each NDIS Practice Standard, see our NDIS audit evidence guide.
Important: This article provides general guidance about NDIS compliance requirements. It is not legal or professional advice. Requirements may change as the NDIS Commission updates its policies and Practice Standards. Always verify current requirements with the NDIS Quality and Safeguards Commission or a registered NDIS consultant before making compliance decisions.