Core vs Capacity Building are the 2 main NDIS budget categories. Understanding which supports fit where helps you use funding correctly and avoid budget confusion.

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 Examples

Assistance with Daily Personal Activities:

  • Personal care (showering, toileting, dressing)
  • Meal preparation
  • Household tasks (cleaning, laundry)
  • Assistance to access community (support worker takes you shopping)

Transport:

  • Taxi vouchers
  • Transport to appointments
  • Community transport services
  • Support worker driving you

Consumables:

  • Continence aids (pads, catheters)
  • Low-cost AT under $1,500 (grab rails, shower chairs)
  • Cleaning products (if support worker uses them)

Social Participation:

  • Support worker at community activities
  • Group activities and outings
  • Recreation programs

Capacity Building Examples

Improved Daily Living:

  • Occupational therapy
  • Physiotherapy
  • Speech therapy
  • Exercise physiology
  • Dietitian
  • Behavior support

Support Coordination:

  • Level 1, 2, or 3 Support Coordination
  • Specialist Support Coordination

Improved Employment:

  • Job coaching
  • Workplace assessments
  • Employment support services
  • School Leaver Employment Supports (SLES)

Improved Learning:

  • Educational support
  • Tutoring
  • Life skills training

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

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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