This article explains the recently introduced and updated NDIS funding periods within a participant's plan, and guidance for service providers using Lumary.
This article includes information about:
- what are funding periods,
- who has access to plan information,
- the main risk of this change for service providers,
- should service providers change Service Agreement durations in Lumary,
- what we do recommend you change, and
- additional information.
This guidance has been prepared based on the latest information provided by the NDIS:
- A message from the CEO about supporting you to manage your NDIS funding - 20 May 2025
- Changes to NDIS funding periods - 19 May 2025
- Funding amounts, components, periods (s33) (New) - 19 May 2025
- How do we include the NDIS funding in your plan? - 10 April 2025
What are funding periods?
Funding periods are a budgeting mechanism designed to give participants more manageable access to their plan funds over time, rather than receiving their full budget at the start of their plan. This helps reduce the risk of overspending and ensures funding is used consistently across the length of the plan.
The NDIS introduced funding periods in October 2024. From May 2025, funding periods allow for different durations across participants’ plans. These changes are being gradually rolled out as participants receive new or reassessed plans.
Key guidance for providers:
- Funding periods are not additional funding - they simply control when funds are available during the plan.
- Funding Period Start and End dates - are defined based on the plans start date and may not align to calendar months.
- 3-month funding periods - for most plan categories by default.
- 1-month funding periods - for Home & Living Supports (SIL) is likely.
- Bespoke funding periods - for Assistive Technology or Home Modifications is likely depending on the participant's needs.
- Different funding components - (core, capacity building, capital costs) may have different funding period lengths within the same plan.
Who has access to plan information?
Access to NDIS plan details, including funding budgets and funding period breakdowns, is restricted to the participant and with consent, their nominated Plan Manager or Support Coordinator. These parties are under no obligation to share this information with service providers.
The NDIS does not provide service providers with direct access to plan or funding period data through the PACE/PRODA portals. Furthermore, the NDIS APIs have not been updated to support access to funding period information and even if they were, access would be limited to the participant’s nominated Plan Manager and Support Coordinator only.
Key guidance for providers:
- Request a copy of the participant’s plan - This is currently the only way a service provider can gain insight into the participant’s overall funding and the funding periods applied to their plan. However, keep in mind that participants are not obligated to share their plan, and you will not have visibility of services being delivered by other providers.
- Request funding allocation confirmation from Plan Managers - If the participant is plan-managed, you should, as part of your service agreement process, request written confirmation from the Plan Manager that funding has been allocated for your services. Ask them to confirm that sufficient funds are available for the relevant funding periods covered by the agreement.
What is the main risk of this change for service providers?
With the elimination of Service Bookings under the PACE rollout, the primary risk for service providers is the potential rejection of claims or invoices toward the end of a funding period, due to that period’s funding being exhausted.
It’s important to note that any unspent funding is automatically rolled over to the next funding period within the same plan. Rejected claims can generally be re-submitted once the new funding period begins, provided the claim date still falls within the overall plan dates and sufficient funding is available in the current period.
Providers are encouraged to maintain communication with the participant's Plan Manager or Support Coordinator (where relevant) to stay informed of any funding constraints.
Key guidance for providers:
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Unspent funds accumulate into subsequent funding periods - Unused funds from a funding period will roll over into the next funding period within the same plan. This ensures that no funding is lost as long as it remains within the plan’s overall duration.
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Providers can submit claims for services delivered in a previous funding period - as long as; The date of service falls within the plan’s overall start and end dates, and there is sufficient funding available in the current funding period to cover the claim.
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Failed claims - If a claim fails due to insufficient funds in the current funding period, an error message will typically indicate this—for example: “Funding within the current period has been exhausted.”
- Stay in touch with Support Coordinators - If you encounter funding errors when submitting claims, it may indicate that funding within a specific period has been depleted. We recommend reaching out to the participant’s Support Coordinator to help clarify the situation and coordinate next steps.
Should service providers change Service Agreement durations in Lumary?
For most service providers, no major changes are needed. Funding periods are primarily an administrative tool to support participants and their plan managers to more easily manage their budgets, and are not a constraint on how providers deliver agreed supports.
In Lumary, Service Agreements play a critical role in the end-to-end service delivery process. They are used to:
- Quote the agreed services with the participant, including quantities, rates, and funding categories
- Formally record agreement between the provider and participant on delivery and payment of those services
- A mechanism to ensure that services scheduled (on session, jobs, respite bookings, auto generated SDs) are planned inline with agreed participant funding
- A mechanism to track service delivery against the agreed quantities and contracted budget allocation
- Enable accurate billing for delivered services, based on what was agreed
Creating multiple Service Agreements to align with each funding period would significantly increase administrative workload without adding value. It would also place an unnecessary burden on you as a business, participants and support coordinators by requiring additional signature processes, and could delay service provision or cash flow if agreements are not returned promptly.
As you have no control over the entire budget spend for a participant, shorter agreements do not lower the risk of participant overspend at a plan/budget level, which is the factor that would impact successful claims/invoicing for services you provide.
For the most part, funding periods do not change what services are agreed to or approved in the plan, we recommend continuing to structure Service Agreements in line with the plan and services being requested.
Key guidance for providers:
- Continue creating service agreements in line with the plan duration. Funding periods do not replace the need for clear, long-term service agreements that span the participant’s plan period.
- You don’t need to align service agreements with funding periods. There's no requirement to create new or rollover service agreements every three months (for example).
- Participants can engage providers at any point in the plan or funding period. This makes it impractical for providers to track or respond to funding period dates on a case-by-case basis.
- Lumary rollover functionality is available, for when and if you have particular participants that require you to have funding periods reflected in agreements. However, we recommend using this feature sparingly, given the extra administrative load it creates.
- There is no real benefit to creating shorter agreements - as you have no control over the budget spend. Even with shorter periods the same level of risk is present as the participant can over spend other services within the funding period and affect your claiming/billing.
What we do recommend you change
We suggest implementing the following changes:
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Service Agreement Templates - We recommend updating your service agreement templates to include a clause that asks the Participant/Guardian/Nominee, Plan Manager, or Support Coordinator to confirm that there is sufficient funding available to cover the requested services. This helps ensure financial clarity and avoids service disruptions.
You may wish to include wording similar to:
I confirm that I have reviewed the participant’s current NDIS plan and considered any other known supports being delivered. Based on this review, I am satisfied that there is sufficient funding available within the relevant funding periods to cover the supports outlined in this agreement.
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Monthly Summary (Coming Soon) - We will soon provide a new feature that will allow you to generate a monthly summary for each service agreement. This summary can be provided to the Participant/Guardian/Nominee, Plan Manager, or Support Coordinator when issuing the agreement for signature.
The monthly summary will estimate planned service delivery and associated costs for each month for each support category. This is based on the agreement Items and Categories entered, using the inbuilt calculator for scheduled services and average monthly values for lump sum items/categories. This breakdown is designed to support others in determining whether there is likely to be sufficient funding available within the relevant funding periods that the agreement covers.
Additional information
Lumary recognises adjusting to the implementation of funding periods will take some time, and is committed to helping service providers to be operationally efficient in administering the constantly changing NDIS landscape.
We continue to engage with the sector on best practice and welcome all feedback and insights you can provide.
More information and guidance will be provided by the NDIS and DSC in June of 2025 and we will be attending and actioning any significant outcomes that affect Lumary.
- DSC: funding periods & Components: What You Need to Know
- NDIS: Understanding the NDIS Webinar Series: funding periods
If you have any feedback regarding how funding periods are affecting your business, please Submit a support request and provide your valuable insight, or please contact your Account Manager.