One of the most confusing aspects of NDIS plans is understanding the difference between Core Supports and Capacity Building. Both are essential funding categories, but they serve different purposes and have different flexibility rules. Getting this right helps you make the most of your plan and avoid accidentally misusing your funding.
This guide explains both categories in plain language, shows you the key differences, and helps you understand which supports fall where.
Understanding NDIS Plan Structure
Every NDIS plan divides funding into three main categories: Core Supports, Capacity Building, and Capital Supports. Today we're focusing on the first two, as these make up the majority of most plans and cause the most confusion.
The simplest way to think about it: Core Supports help you with everyday needs right now, whilst Capacity Building helps you build skills and independence for the future.
What are Core Supports?
Core Supports fund your day-to-day disability-related needs. This is the flexible, practical part of your plan that covers everyday assistance. Core Supports are divided into four subcategories:
1. Assistance with Daily Living
This is typically the largest Core Support budget. It covers personal care, help with meals, domestic assistance, and other daily tasks. This subcategory also includes funding for Supported Independent Living (SIL) if you live in a shared supported home.
2. Transport
Funding to help you get to appointments, work, social activities, or community participation. This might cover taxi fares, specialised transport services, or mileage reimbursement for support workers driving you places.
3. Consumables
Low-cost items you use regularly due to your disability — continence products, basic communication aids, low-cost assistive technology, nutritional supplements, and similar consumable goods.
4. Assistance with Social and Community Participation
Support to access community activities, recreation, social events, and hobbies. This funds support workers who help you participate in community life.
Core Supports Flexibility
The key feature of Core Supports is flexibility. You can generally move funding between the four Core subcategories as your needs change. If you need more personal care and less community participation one month, you can reallocate. This flexibility doesn't apply to stated items like SIL, which must be used as allocated.
What is Capacity Building?
Capacity Building supports help you build independence, skills, and capacity over time. Unlike Core Supports, Capacity Building is about investing in your future capabilities, not just meeting today's needs. Capacity Building has nine subcategories, each with its own fixed budget:
1. Support Coordination
Funding for a support coordinator to help you implement your plan, find providers, and connect with services. Support coordinators don't deliver supports themselves — they help you access them.
2. Improved Living Arrangements
Help finding and maintaining suitable accommodation, whether that's staying in your current home, moving to more appropriate housing, or transitioning to greater independence.
3. Increased Social and Community Participation
Building social skills, developing friendships, joining community groups, and learning to participate independently. This differs from Core's community participation, which funds the support itself rather than skill-building.
4. Finding and Keeping a Job
Employment support including job coaching, workplace modifications, skills training, and ongoing support to maintain employment.
5. Improved Relationships
Help developing communication skills, understanding social cues, building healthy relationships, and managing conflicts.
6. Improved Health and Wellbeing
Funding for allied health professionals like occupational therapists, physiotherapists, exercise physiologists, dietitians, and psychologists. These professionals help you build skills, not just provide treatments.
7. Improved Learning
Educational support to develop skills, whether formal education or informal learning opportunities that build your capabilities.
8. Improved Life Choices
Support to make decisions, understand options, advocate for yourself, and take control of your life choices.
9. Improved Daily Living Skills
Teaching and coaching to develop practical skills for greater independence — cooking, budgeting, using public transport, managing medications, and similar life skills.
Capacity Building is NOT Flexible
Unlike Core Supports, you generally cannot move funding between Capacity Building subcategories. If you've used all your Support Coordination funding, you can't access your Improved Health and Wellbeing budget to pay for more coordination. Each Capacity Building subcategory is ring-fenced unless you request a plan review.
Key Differences: Core vs Capacity Building
Real-World Examples
Let's make this concrete with examples:
Example 1: Community Participation
- Core Supports: Funding a support worker to take you to the cinema each week
- Capacity Building: Working with a therapist to develop social skills so you can eventually attend independently
Example 2: Daily Living
- Core Supports: A support worker helping you prepare meals each day
- Capacity Building: An occupational therapist teaching you cooking skills so you can eventually prepare meals independently
Example 3: Health Management
- Core Supports: A support worker reminding you to take medication and assisting with health appointments
- Capacity Building: A psychologist helping you develop strategies to manage your mental health independently
Need Help Understanding Your NDIS Plan?
Life Assist Abilities Support can explain your funding categories and help you make the most of both Core and Capacity Building supports.
Get in TouchHow to Make the Most of Both Categories
The best NDIS plans use Core and Capacity Building together strategically:
- Use Core Supports for immediate needs whilst Capacity Building works toward reducing those needs long-term
- Don't underspend Capacity Building thinking you'll save it — it doesn't roll over, and underutilisation may reduce future funding
- Coordinate your supports — have your therapists and support workers communicate so Core supports reinforce what you're learning through Capacity Building
- Track spending in both categories through your plan manager or myplace portal to avoid running out unexpectedly
- Plan reviews can adjust allocations if you consistently over or underspend in either category
Pro Tip
If you're consistently using more Core than Capacity Building (or vice versa), request a plan review. The NDIA can reallocate funding between these two main categories if your circumstances or needs have changed. Don't wait until your annual review if the current split isn't working.
Frequently Asked Questions
Can I move money between Core Supports and Capacity Building?
No, not without a plan review. Core and Capacity Building are separate budget categories. However, within Core Supports, you can move funding between subcategories (Assistance with Daily Living, Transport, Consumables, and Social Participation).
Which category is more flexible?
Core Supports is far more flexible. You can reallocate funding between Core subcategories as your needs change. Capacity Building budgets are fixed per subcategory — once you've spent your Support Coordination allocation, for example, you can't access other Capacity Building funds to pay for more coordination.
What happens if I use all my Capacity Building funding early?
You'll need to either pay privately for additional capacity building supports, request a plan review if circumstances have changed, or wait until your next plan. This is why it's important to pace Capacity Building spending across your plan period.
Do all NDIS plans have both categories?
Most plans include both Core and Capacity Building, but the amounts vary significantly based on individual needs and goals. Some participants with very high support needs may have mostly Core funding, whilst others focused on building independence may have substantial Capacity Building allocations.
How do I know which category my support falls under?
Ask yourself: Is this support helping me with tasks I need done now (Core), or is it teaching me skills to do things more independently in future (Capacity Building)? When in doubt, check with your support coordinator or provider — they can advise on correct budget categories and ensure claims go to the right place.