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What Happens to Unused NDIS Funding?

What Happens to Unused NDIS Funding?

  • November 11, 2025

If you’re an NDIS participant—or supporting someone who is—you might have looked at your plan towards the end of the year and thought, “Hang on… I haven’t used all of my funding. What happens to it?”

You’re definitely not alone. It’s actually really common to end up with some unspent funds in your NDIS plan. Whether it’s because life got busy, your needs changed, or you had trouble finding the right providers (especially in certain parts of Sydney), it can be confusing to know what to do next.

So, let’s take a moment to talk through what happens to unused NDIS funding—and more importantly, how you can make the most of your plan moving forward.

Understanding How NDIS Funding Works

The National Disability Insurance Scheme (NDIS) provides funding to help people with disability access the supports and services they need to achieve their personal goals. Every participant receives an individual plan, which outlines their goals and the funding allocated to help reach them.

Your NDIS budget is usually split across three main categories:

  • Core Supports – For daily living assistance, transport, consumables, and community participation.

  • Capacity Building Supports – For therapies, training, or supports that help build independence and long-term skills.

  • Capital Supports – For one-off or significant purchases such as assistive technology or home modifications.

Some supports, like Core Supports, are flexible, while Capacity Building Supports must be used for their specific purpose.

Each plan is developed to cover a specific period (often 12 months). The NDIA determines the “reasonable and necessary” amount of support you’ll need during that time, based on professional reports, progress, and your personal goals.

Can Unused NDIS Funds Roll Over?

This is where things can get confusing, because there are two different types of rollovers to understand:

1. Within the Same Plan (Funding Periods)

Some participants have their funding released in periodic instalments—known as funding periods. If you don’t use all of your funds in one funding period, the remaining amount usually rolls over to the next funding period within the same plan. Some plans release the full funding at once, in which case “quarterly rollovers” do not apply.

That means you’re not penalised for underspending in one quarter or half of your plan. You can still use those funds later in the plan period as long as your plan is active.

This system helps you:

  • Smooth out your spending over the full plan duration

  • Avoid running out of funds early

  • Adjust your supports based on what’s happening in your life

Example:

If your plan runs from July 2025 to June 2026, and you underspend in the first three months, those unspent funds should remain available for you to use later—as long as you’re still within that plan period.

2. Across Different Plans (Plan Rollovers)

Once your NDIS plan ends and a new one begins, unused funds do not roll over. When your plan end date passes, any leftover funding returns to the NDIA. Your new plan starts fresh, with new goals, supports, and funding allocations based on your latest needs.

So while funds can roll forward within your current plan’s funding periods, they cannot transfer to a brand-new plan with new start and end dates.

Why Doesn’t NDIS Funding Roll Over Between Plans?

It might seem frustrating that leftover funds can’t be carried into your next plan, but there’s a good reason for it.

Each new plan is designed to reflect your current situation, not your past spending habits. The NDIA reviews:

  • Your goals and progress reports

  • Changes in your circumstances

  • Therapy recommendations

  • Any new needs that have emerged

Because of this, your new plan is effectively a clean slate. The NDIA reassesses what’s reasonable and necessary for the next 12 months, rather than simply topping up or deducting from your previous plan balance.

Will Not Using All Your NDIS Funding Affect Future Plans?

Unused NDIS funds don’t automatically reduce your next plan’s budget—but they can influence how the NDIA views your funding needs.

Here’s how it works:

  • If your funding was underutilised, the NDIA may ask why.

  • If there’s no clear reason, they might assume the funding level was too high.

  • However, if you can show that your lower spending was due to external factors (e.g., waitlists, provider shortages, illness), your funding should remain consistent.

 

The best way to protect your future funding is through documentation and communication. Keep records of:

  • Provider cancellations or service gaps

  • Delays in accessing therapies

  • Notes on how supports have contributed to your goals

Unused funds do not automatically reduce future plans, but if funding is consistently underused, NDIA may review your needs.

Why NDIS Funding Sometimes Goes Unused

There are plenty of reasons people might end up with unspent funds. You might recognise a few of these yourself:

  • Finding the right provider took longer than expected. In Sydney, there are lots of options, but sometimes it still takes a while to find the right fit for your needs.

  • Your circumstances changed. Maybe your health improved, you took a break from therapy, or your living situation changed.

  • Services weren’t available. Particularly for more specialised supports, there can be waiting lists.

  • You just didn’t realise what could be funded. This happens often—NDIS plans can feel overwhelming at first, and it’s easy to miss opportunities.

The important thing to know is that you’re not doing anything “wrong.” Managing an NDIS plan is a learning journey, and each year gives you more experience and confidence.

Important Limitations to Know

While the funding rollover system within your plan gives you flexibility, there are a few key rules to remember:

  • Funds from an expired plan can’t be transferred to a new plan—even if the new plan starts immediately after the old one.

     

  • You can’t use future funding to pay invoices from a previous plan or funding period.

     

  • Category flexibility is limited—while some funds (like Core Supports) are flexible, others (like Capacity Building) can only be used for their specific purpose.

     

Understanding these rules helps prevent payment delays and ensures your plan remains compliant with NDIS guidelines.

A Few Local Thoughts for Sydney Participants

Sydney’s a big, busy place, and that can be both a challenge and an advantage. On one hand, there’s usually more choice when it comes to supports and programs. On the other, it can feel overwhelming trying to find your way through all the options.

Try connecting with local community groups, disability organisations, or even NDIS-focused social media groups in your area. Hearing how others manage their plans can spark new ideas and remind you that you’re part of a bigger community of people navigating the same system.

How Concept Care Can Help You Make the Most of Your NDIS Plan

Concept Care is a leading NDIS registered service provider in Sydney, offering unmatched in-home support services delivered by highly experienced Support Workers.

Our NDIS support coordinators can simplify your plan, connect you with trusted providers, manage your budget, and ensure your supports are adapted as your circumstances evolve. From plan development and provider connections to assistive technology guidance, emergency coordination, and ongoing monitoring,

Concept Care’s comprehensive services are designed to help you stay on track and reach your goals confidently.

So, if you’re in Sydney and feeling unsure about how to make the most of your NDIS plan—or you simply want caring, experienced professionals by your side—Concept Care is here to support you every step of the way.