Overview of Section 33 Budget Changes - Effective from 19th May 2025

Important changes are about to take place with the NDIS that may impact how you deliver services, manage claims, and structure your invoicing from 19 May 2025. These updates are being introduced under Section 33 of the NDIS Act and will apply to all new plans approved from this date onward.

The changes are significant, affecting the way participant funding is structured, viewed in the NDIA/PRODA portals, and how claims are processed. Given the very short notice provided for this rollout, we want to ensure all our clients are fully informed and equipped to adjust their business practices accordingly.

We have reviewed these changes so far. Please read our findings below:

Introduction of Funding Periods

What is changing?

• NDIS Plans will now be broken down into “Funding Periods”—smaller timeframes (usually 12 months) within the overall plan.

• Each funding period will have a set budget allocation for that period.

• This is designed to help participants manage their funds better and avoid over- or under-spending.

Impact on NDIS Providers:

• Invoicing will need to align with the participant’s active funding period. Providers must be aware of how much funding is available within the current period before delivering services.

• If a participant exhausts their allocation for a current funding period, providers cannot claim beyond that amount, even if overall plan funds are remaining.

• Service Agreements and Schedules of Supports must reflect these periods, ensuring clarity on billing cycles, caps, and service delivery within each funding period.

• Providers should establish processes to monitor participant funding utilisation in real-time, to prevent service delivery gaps or funding disputes.

Practical Tip:

Always request a copy of the participant’s Funding Period breakdown as part of onboarding or plan reassessment updates. This will help forecast billing and ensure services remain billable.

Total Budget and Funding Component Amounts

What is changing?

• Plans will explicitly state:

  • Total Budget Amount (full plan value)

  • Funding Component Amounts (per support category: Core, Capacity Building, etc.)

  • Funding Period Allocations (portion of funds available per period for each component)

Impact on NDIS Providers:

• Providers will no longer rely solely on the “annual” budget view. You’ll need to understand:

  • Which component your services are billed under

  • How much funding is left for that component within the current funding period

• Invoices must be raised against the correct funding component and period allocation. Incorrect claims may be rejected if the component is exhausted in that period.

• For Support Coordinators, Plan Managers, and Finance Teams, this adds an additional layer of complexity in tracking balances within both components and funding periods.

• Service scheduling may need to adjust mid-plan if a participant’s funding period allocation for a specific component is running low.

Practical Tip:

Consider using software like PRODA-linked CRMs (Splose, Careview, etc.) that can track funding components against periods, to automate alerts when approaching funding limits.

Spending Within Funding Periods

What is changing?

• Participants must manage their funding within the allocated funding period.

• Unspent funds roll over within the current plan to the next funding period.

• However, any leftover funds at the end of the final funding period (end of plan) will not roll into a new plan.

Impact on NDIS Providers:

• Providers will no longer be able to “back-claim” to prior funding periods if a participant did not use funds in that timeframe.

• Timely invoicing becomes critical — delays in issuing invoices could result in unpaid claims if funding for that period has been exhausted or expired.

• Providers must be proactive in ensuring:

  • Invoices are submitted promptly (weekly or fortnightly)

  • Participants are kept informed if approaching funding period limits

• There’s a risk that end-of-plan periods will see funding exhaustion, especially if participants defer spending until late in the plan cycle.

Practical Tip:

Implement a monthly funding utilisation review with clients or their plan managers to avoid surprises. Communicate early if funding is running low within a period.

At Allied Admin Partners, we are committed to providing accurate, up-to-date information to support our providers in navigating changes to the NDIS. We understand how disruptive short-notice updates can be, and we are here to help you stay informed and prepared. As more information becomes available from the NDIA regarding these funding period changes, we will continue to share updates, resources, and practical guidance to support your business operations.

If you have any questions or need assistance adapting your processes, please don’t hesitate to reach out to us.