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NDIS explained

What is capacity building in the NDIS?

Updated 19 October 2026 · Checked against official NDIS and government sources

In plain English

Capacity Building is one of the NDIS support budgets. It funds supports that build your skills and independence, so you may need less help in future: therapy, support coordination, recovery coaching, plan management, behaviour support, life skills training and help to find a job. The funding is set aside for specific purposes, so unlike most Core funding you cannot move it between categories.

What capacity building means

Core supports help you get through everyday life. Capacity Building supports aim to change it: to build your skills, confidence and independence so you can do more for yourself, or need a different kind of support over time.

The NDIA shares your progress and outcomes from these supports at each plan reassessment, so it expects to see what they are achieving.

The Capacity Building categories

In plans made in the NDIA's PACE system, Capacity Building is split into these support categories:

  • 07 Support Coordination and Psychosocial Recovery Coaches
  • 08 Improved Living Arrangements: help to find and keep a home
  • 09 Increased Social and Community Participation: skills to join in community life
  • 10 Finding and Keeping a Job: employment assistance and school leaver employment supports
  • 11 Relationships: social skills and relationship supports
  • 12 Health and Wellbeing: exercise physiology, dietetics and similar supports
  • 13 Lifelong Learning: help moving through school and into further education
  • 14 Choice and Control: plan management and training to manage your plan
  • 15 Improved Daily Living Skills: therapy, assessments and daily living skills training
  • 20 Behaviour Support: specialist behaviour support

How it differs from Core

Core funding for daily life, transport, consumables and community participation can often be used flexibly across those categories. Capacity Building funding is allocated to specific categories and can only buy the supports described there. You cannot move it into Core, or Core into it.

Each category usually has a dollar amount, not a set number of hours, so you choose providers and how often to see them within that amount. Price limits apply if your plan is agency managed or plan managed.

The October 2026 funding reset

From 1 October 2026, two groups of supports are reduced when a plan is created, reassessed or renewed: improved daily living skills supports by 10%, and social, economic and community participation supports by 50%. The first sits in Capacity Building, and the second mostly in Core with some Capacity Building supports.

Some subgroups are protected, including supports in employment, disability related health supports, high intensity supports, intensive and complex behaviour supports, customised and wearable technology, and hearing services. Your new plan shows the total, the amount available after the change, and which funding is not affected.

Using your Capacity Building budget well

  • Link each support to a goal in your plan, in your own words
  • Ask providers for a short progress report before your reassessment
  • Check how much is left in each category every few months, not just at the end
  • Since the 10% reset, plan therapy hours with assessments and equipment advice in mind, as they often share the same budget
  • From 1 February 2027 renewed plans do not roll over unspent funds, so use it through the plan

Capacity Building in new framework plans

From 1 April 2027 participants start moving to new framework plans. These show a flexible budget for most supports and stated supports for a few, rather than Core, Capital and Capacity Building budgets. The October 2026 reset does not apply to new framework plans. Everyone will have moved by 31 December 2030.

For providers

Check which category each support item belongs to, and quote against the funding available after the reset, not the total. Clear goals, session notes and progress reports help participants show what Capacity Building is achieving at reassessment.

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Common questions

What is the difference between Core and Capacity Building?

Core funds help with everyday activities and is often flexible across its categories. Capacity Building funds supports that build your skills and independence, and it is tied to specific categories.

Can I use Capacity Building funding for a support worker?

Only for supports described in a Capacity Building category, such as daily living skills training or skills to join community activities. Everyday help from a support worker usually comes from Core.

Is therapy paid from Capacity Building?

Yes. Therapy such as occupational therapy, speech pathology, physiotherapy and psychology is usually funded from Improved Daily Living Skills.

Was Capacity Building cut in 2026?

Improved daily living skills budgets are reduced by 10% when a plan is created, reassessed or renewed from 1 October 2026, and social, economic and community participation supports by 50%. Some subgroups are protected.

Can I move money from Capacity Building to Core?

No. Funding cannot be moved between Core, Capacity Building and Capital. If a budget is not right for your needs, talk to the NDIA about a plan variation or reassessment.

Sources

This page is general information, not advice about your plan. NDIS rules change, so check the NDIA or your plan manager before making decisions.

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