Core vs Capacity Building are two of the main NDIS budget categories. This page is a quick comparison so you can tell which support fits where and avoid budget confusion. For the everyday-funding side in full, see our NDIS Core Supports guide. For the skill-building side, see our NDIS Capacity Building supports guide.

The 3 NDIS budget categories

1. Core Supports - Daily living activities

  • Assistance with daily personal activities (showering, dressing, eating)
  • Consumables (continence aids, low-cost AT under $1,500)
  • Transport to appointments and activities
  • Assistance with social and community participation

2. Capacity Building - Building skills and independence

  • Improved daily living (OT, physio, speech therapy)
  • Support coordination
  • Improved relationships (social skills training)
  • Improved health and wellbeing (exercise physiology, dietitian)
  • Improved life choices (plan management)
  • Improved learning (educational supports)
  • Improved employment (job coaching, workplace mods)

3. Capital Supports - One-off equipment and modifications

  • Assistive technology (wheelchairs, communication devices)
  • Home modifications (ramps, bathroom changes)
  • Vehicle modifications
  • Specialist Disability Accommodation (SDA)

Core vs Capacity: What’s the difference?

Core = DOING things for you

  • Support worker helps you shower = CORE
  • Support worker drives you to appointments = CORE
  • Buying continence pads = CORE

Capacity Building = TEACHING you to do things

  • OT teaches you cooking skills = CAPACITY BUILDING
  • Speech therapist teaches communication = CAPACITY BUILDING
  • Support Coordinator teaches you to manage plan = CAPACITY BUILDING

Rule of thumb: If it’s building skills/independence = Capacity Building. If it’s ongoing assistance = Core.

Examples by budget category

Core Supports (daily assistance): personal care, meal prep, household tasks, transport, low-cost AT under $1,500 and other consumables, and support workers at community activities. For the full breakdown with 50+ spending examples, see our NDIS Core Supports guide.

Capacity Building (skill-building): occupational therapy, physiotherapy, speech therapy, support coordination, employment support (including SLES), and plan management. For all 9 Capacity Building categories and what each funds, see our NDIS Capacity Building supports guide.

Improved Daily Living (therapy under Capacity Building) is the one people most often confuse with Core’s Assistance with Daily Life. Our Improved Daily Living / CB Daily Activity guide explains that distinction in detail.

Plan management sits under Capacity Building (Improved Life Choices). See how plan management with Carevo works.

Flexible vs Fixed budgets

Flexible budgets (can move between categories):

  • Core Supports budget = 100% flexible
  • Can use across all 4 Core sub-categories
  • Example: Underspend Transport, use extra for Social Participation

Fixed budgets (cannot move):

  • Capacity Building = usually fixed per sub-category
  • Cannot move OT budget to Support Coordination
  • Cannot move Capacity Building to Core

Check your plan: Look for “flexible” or “fixed” next to each budget line. The NDIS explains how these budgets work in its guidance on supports funded by the NDIS.

How to allocate your NDIS budget

Use our Core vs Capacity Budget Allocator

Typical allocation for different support needs:

High daily support needs (SIL/24-7 care):

  • Core: 70-80% ($140K-$280K)
  • Capacity Building: 15-25% ($30K-$70K)
  • Capital: 5-10% ($10K-$35K)

Moderate support needs:

  • Core: 50-60% ($20K-$40K)
  • Capacity Building: 30-40% ($12K-$25K)
  • Capital: 5-10% ($2K-$8K)

Low support needs (therapy focus):

  • Core: 20-30% ($5K-$10K)
  • Capacity Building: 60-70% ($15K-$25K)
  • Capital: 5-10% ($2K-$5K)

Common mistakes

Mistake 1: Using wrong budget category

  • Buying AT under $1,500 from Capacity Building (should be Core Consumables)
  • Paying Support Coordinator from Core (should be Capacity Building)

Mistake 2: Assuming all budgets are flexible

  • Most Capacity Building budgets are fixed
  • Cannot move between sub-categories without plan review

Mistake 3: Not tracking spending

  • Overspend one category, underspend another
  • Use NDIS app or plan manager to track spending

Frequently asked questions

Can I move Core budget to Capacity Building?

Usually no. Core budgets are flexible WITHIN Core category (can move between Transport, Consumables, etc.) but cannot move to Capacity Building. Exception: If your total plan is “flexible funding” (rare), you may be able to move between categories. Check your plan document or ask LAC.

Is Support Coordination Core or Capacity Building?

Capacity Building. Support Coordination is always funded from “Improved Life Choices” under Capacity Building, never from Core Supports. Typical SC funding: $5,000-$8,000/year.

Can I use Capacity Building budget for support workers?

No. Support workers are Core Supports (daily assistance). Capacity Building is for therapy and skill-building services only. If you try to pay support workers from Capacity Building budget, NDIS will reject the claim.

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