NDIS Budget Categories Explained (Core, Capacity Building, Capital)
The three NDIS budget categories - Core, Capacity Building and Capital - explained in plain English, plus how flexible budgets are changing.
The three NDIS budget categories at a glance
Core Supports: your everyday, flexible budget
Capacity Building: money to build skills and independence
Capital: equipment, technology and home changes
Why knowing the category matters when you spend
How the categories are changing: flexible budgets
The participation budget reset: what is and isn't changing
A worked example: reading a whole plan
How your budget is managed changes what you can do
Common pitfalls with budget categories
What to do next
Frequently asked questions
Can I move money between Core, Capacity Building and Capital?
No, not between the three main categories. Core Supports is flexible within itself, so you can usually move money between daily life, consumables and community participation. But you cannot shift money from Core to therapy, or from Capital equipment to support hours. Each of Capacity Building and Capital is locked to its purpose. If you need to move funding across categories, talk to your support coordinator or the NDIA.
Which budget does therapy come out of?
Therapy such as occupational therapy, physiotherapy, speech pathology and psychology comes from Capacity Building, specifically the Improved Daily Living sub-category. It does not come from your Core support-worker budget. Each Capacity Building area is funded separately and cannot be topped up from another area.
Are the Core, Capacity and Capital categories going away?
They are being replaced over time. Under the new planning framework, expected to roll out progressively from 1 April 2027, the three categories give way to more flexible budgets with longer plans and fewer reviews. Existing participants move across as their plans renew, and children under 18 are not part of the initial rollout. Dates have already shifted once, so confirm the current position with the NDIA.
Is my personal care being cut in the 2026 reforms?
No. Critical daily-living and personal-care supports - help with showering, dressing, eating and staying safe at home - are not part of the participation reset starting from 1 October 2026. That reset reduces allocations for social, civic and community participation supports. How much any individual is affected depends on how much of those particular supports they currently use.
What if my equipment costs less than the approved Capital amount?
The leftover Capital money stays tied to that approved item and does not become spending money for other supports. Capital is the least flexible budget. If your needs change and you want to use funding differently, you would need to discuss it with the NDIA, usually at a plan reassessment.