Running out of NDIS funding can be several different problems wearing the same outfit.
Sometimes it's a budget management issue. Sometimes it's a genuine underfunding issue. Sometimes it's a mix of both. And sometimes, and let's be honest here, it's a bit of wishful spending which aligns with what we think should have been funded and now what was actually funded.
This article is going to cover everything. Without judgement. But also without pretending the uncomfortable bits don't need to be spoken about.
Here's what we'll get through:
- Why funding periods were introduced - and why they make justifying running out of money before the end of a plan much harder.
- The hard truth about spending within your actual budget (not the budget you think you should have)
- How to formally request more funding if your budget genuinely isn't enough
- Other ways to pay for supports outside of NDIS
Let's go.
Why funding periods were introduced
Before May 2025, NDIS budgets were mostly allocated in lump sums to cover the full length of the plan. For some people, this meant getting anywhere from one to five years' worth of funding at once.
The risk with this is that some people would spend all of this money well before the end of their plan. There were no safeguards or way to pace out spending. For any of you who can relate, it's like going from weekly to monthly pay. When that pay hits your bank account for the first week, you feel like you're the wealthiest person on the planet, but by week four, you're living on a diet of stale bread and water. (Not really, but you get what I'm saying.)
Funding periods were introduced to fix this.
Any plan built after May 2025 will now have funding periods. What does this mean? It's a fancy way of saying that depending on each support category, you'll only get some of the money released at various stages rather than all at once. For example, if your child's Improved Daily Living funding is $40,000, you'll get $10,000 released every three months.
This was designed specifically to make it nearly impossible to run out of NDIS funding if you're spending at a normal, consistent rate. And if you do run out of money within a funding period, you'll need to stop services and wait until the next funding period starts to resume.
Now. I want to be really clear about what this means in real life.
If you're consistently running out of funding period after period, that's a signal. It could mean you genuinely need more funding. It could mean your spending is outpacing what the plan was designed to cover. It could mean both.
But the funding period structure means you should, in theory, never hit zero unexpectedly. You should see it coming. Which means you have time to do something about it.
That "something" matters a lot. Let's talk about it.
The uncomfortable truth: your budget is what it is
Here's the bit that people don't always want to hear.
Just because you believe your child needed more funding, or that the NDIA got it wrong, does not mean you can spend like you got more.
I know. That's hard to read. And trust me, I'm not saying the Agency got it right either, but what I am saying is that when your child's plan lands, it is what it is.
This is important because families sometimes operate on the assumption that if the NDIA underfunded them, they can get it reviewed or sort it out later.
Unfortunately, you cannot.
Your child's NDIS plan is a legal document. The funding in it is what has been considered reasonable and necessary. Spending outside of what's been allocated, or spending from the wrong budget category, creates real compliance risk. For you. Not the NDIA.
A good plan manager will track your budgets and flag when things are getting tight. But they can't stop you from spending. They can't fix an overspend after the fact. And they are not personally responsible for paying that outstanding bill to the provider, that's yours.
So what do you do if you genuinely believe the funding isn't enough?
You follow the process. You don't just spend and hope. You advocate through the right channels.
How to ask for more funding, the right way
There are real, legitimate pathways to request more funding. Use them.
Request a Review of Reviewable Decision (s100)
If your plan was recently approved and you believe the funding doesn't reflect your child's needs, you can request an internal review, also known as an s100.
This is your formal way of saying: "I believe the decision(s) you made about our funding is wrong, this is why and I want you to reconsider."
It's not a wish list. It's not a chance to ask for more of everything. A s100 review is very specific, you nominate exactly which decision(s) you believe were incorrect, and you provide evidence to support why.
We've written a full blog on how to do this well: How to Appeal an NDIS Decision: Reviews, s100 and What Happens Next.
Submit a Change of Circumstances application
If your child's needs have genuinely changed since the plan was approved, for example an updated diagnosis, deterioration, change in family situation, you can submit a Change of Circumstances request.
This asks the NDIA to reassess your plan in light of new information.
Important caveat: this is not a workaround for a plan you just didn't like. It's for genuine, evidenced change. The NDIA will look at whether the change in circumstances is significant and whether it affects what "reasonable and necessary" supports your child needs.
Request an early plan review
You can also request a plan review outside of your regular review date if you are approx three months away from your plan’s scheduled end date. This is sometimes called an "early review" and it gives you the opportunity to bring new evidence forward and have your plan reassessed.
While you wait, spend within what you have
This is the part that takes real discipline.
While you're going through any of these processes, you must continue to spend within your existing approved budget. Not the budget you're hoping to get. The one you actually have.
It sounds obvious. But in the thick of it, when therapists are booked, school terms are flying, and your child's needs don't pause for NDIA admin timelines, it can feel impossible.
This is where a good plan manager genuinely earns their keep. Watching your budgets, running the numbers, helping you prioritise. So that you're not making decisions blind.
Other ways to pay for therapy outside the NDIS
The NDIS isn't the only funding source for therapy. It's just the one that gets all the attention.
There are real, underused pathways that can take pressure off your NDIS budget or bridge the gap while you're waiting for a plan review.
GP Chronic Condition Management Plan (formerly the Chronic Disease Management Plan)
Your GP can put together a Chronic Condition Management Plan.
This gives your child access to up to 5 Medicare-subsidised allied health visits per calendar year.
That includes services like physiotherapy, occupational therapy, speech therapy, psychology, podiatry, and more.
Talk to your GP. Not all of them think to suggest this.
Private Health Insurance
If your family has private health insurance with extras cover, check your policy for allied health benefits.
Many policies include physiotherapy, occupational therapy, speech therapy, and psychology. The rebates vary enormously depending on your level of cover, some are modest, some are surprisingly decent.
Every session claimed through private health is one less session coming out of your NDIS funding.
A few things worth knowing:
- You generally can't claim the same session through both Medicare and private health
- Some providers will bulk bill, others will require a gap payment
- It's worth calling your insurer and asking specifically what your annual limit is for each therapy type
Mental Health Care Plan
If your child is experiencing mental health challenges, anxiety, depression, emotional dysregulation, trauma responses , your GP can refer them to a psychologist under a Mental Health Care Plan.
This provides up to 10 Medicare-subsidised psychology sessions per calendar year (up to 20 in some circumstances).
This is genuinely significant. Psychology through the NDIS can burn through funding fast. Getting some sessions covered by Medicare means you can stretch your NDIS capacity support budget further, or redirect it to other therapies.
Again: your GP is the starting point. Ask them directly.
Not sure what to say? We’ve made this easier. We’ve put together a simple GP talking points checklist you can use at your next appointment, so you don’t have to figure it out on the spot. Download HERE
Other ways to pay for equipment and assistive technology
Equipment is where NDIS budgets can really take a hit. Wheelchairs, communication devices, sensory equipment, home modifications, the costs add up fast.
Here's the thing that a lot of families don't know: there are grant programs specifically designed to help families with disabled children access equipment. They're not well advertised. But they exist.
The Steve Waugh Foundation supports young Australians with rare diseases. If your child has a rare condition, they may be eligible for a grant to help with equipment, experiences, or other support needs.
Their grants are designed to help with things that fall outside of what mainstream funding covers, or to supplement existing funding when costs are high.
Worth checking: stevewaughfoundation.com.au
Variety - The Children's Charity
Variety Australia provides grants and support to children with illness, disability, or disadvantage. They fund a wide range of equipment and experiences, mobility aids, communication devices, sensory equipment, and more.
Each state has its own Variety chapter with its own grant programs and application processes. Some are need-based, some are application-based, some open and close at different times of year.
It's worth keeping an eye on their website and signing up for notifications: variety.org.au
FAQs
What happens if my NDIS funding runs out?
If your funding period runs out, you will not be able to pay for NDIS supports from your NDIS plan until the next funding period starts. This is why it's critical to monitor your budgets across the full plan period. A good plan manager will flag when you're tracking to run out early. I hear Kindship Plan Management is pretty good at this
What should I do if my NDIS budget doesn't balance?
First, look at whether you're spending within your approved categories. Then look at whether your plan genuinely reflects your child's needs. If the plan is underfunded, use the formal pathways, change of circumstances or a s100 review and in the worse case scenario, taking your request to the Administrative Review Tribunal. Do not overspend while you wait.
What if my NDIS funds are not enough for my child’s recommended therapies?
Look at other ways to pay: Medicare's Chronic Condition Management Plan (up to 5 allied health sessions), a Mental Health Care Plan (up to 10 psychology sessions), and private health insurance extras. These can run alongside your NDIS plan and reduce the pressure on your therapy budget.
Can I use grants to pay for equipment instead of NDIS?
Yes, and it's a smart strategy. The Steve Waugh Foundation and Variety Australia are worth exploring to help cover equipment costs that would otherwise eat into your NDIS budget.
The bottom line
Running out of NDIS funding is stressful.
But the answer to "my plan funding isn't enough" is never "spend anyway and figure it out later."
The answer is: track your budgets, flag the shortfall early, use the formal pathways to ask for more, and in the meantime, explore every other funding source available.
And if you're not sure how to do any of that — that's what we're here for.
At Kindship, we track our families' budgets closely, flag when things are getting tight, and help you understand your options. We can't request more funding on your behalf, but we can make sure you have the information you need to advocate for your child.
If you'd like to chat about how plan management can take some of the pressure off, book a free call with our team here. We'd love to help.
Kindship is a registered NDIS plan management provider. This article is for general information purposes only and does not constitute financial, legal or NDIS advice. Always check current NDIS guidelines or speak with a professional for advice specific to your situation.
