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NDIS Capacity Building: What It Funds and How to Use It
By Matt Clements, CRO at Kismet Healthcare
Capacity Building is one of the 4 support budgets in an NDIS plan. It pays for supports that build your skills, so you can do more for yourself and work towards your goals. Think therapy, skills training, help to find a job and support coordination. It is not for everyday help. That is what Core supports are for. Capacity Building funding is stated, so you must use it the way your plan describes.
What is Capacity Building in the NDIS?
Every NDIS plan has 4 support budgets: Core, Capacity Building, Capital and Recurring. You only get funding in the budgets you need.
The NDIA says Capacity Building supports build your skills to do things for yourself and work towards your goals.
Here's a simple way to think about it. Core is the help you use today. Capacity Building is the training that builds your own skills over time.
For example, Core might pay a support worker to help you cook dinner. Capacity Building might pay an occupational therapist to help you learn to cook safely on your own.
To see how all 4 budgets fit together, read our pillar guide, Understanding Your NDIS Plan.
What are the Capacity Building support categories?
There are 21 support categories across the 4 budgets. The NDIS Pricing Arrangements and Price Limits 2025-26 lists 10 in Capacity Building:
- Behaviour Support
- Choice and Control
- Finding and Keeping a Job
- Health and Wellbeing
- Improved Daily Living Skills
- Improved Living Arrangements
- Increased Social and Community Participation
- Lifelong Learning
- Relationships
- Support Coordination and Psychosocial Recovery Coaches
You only get funding in the categories you need. Most plans won't have all 10.
Older plans may show 9 categories with slightly different names. Choice and Control used to be Improved Life Choices. Behaviour supports sat under Improved Relationships. For more on how categories work, see NDIS support categories explained.
What can Capacity Building pay for?
Each support should link to a goal in your plan. It must also be an NDIS support. The NDIA says you can only buy supports from the NDIS supports lists.
Common examples from the NDIA include:
- speech therapy or occupational therapy, to build daily living skills
- a dietitian or exercise physiologist, for your health and wellbeing
- building work skills, a career plan or work experience
- help to move from school to TAFE, university or a short course
- a support worker to help you apply for a rental or get ready for an inspection
- a support coordinator, who is usually funded for a set time
- a plan manager, funded through Choice and Control
Rent and rental bonds are not NDIS supports. You pay those yourself.
Whether a support is funded always depends on your plan and the NDIS rules.
Is Capacity Building funding stated or flexible?
Capacity Building funding is stated. You can only use it for the support described in your plan. You can't move money between Capacity Building categories.
Here's the NDIA's own example. Lucy's plan has $5,000 in Capacity Building for speech pathology. She can only use it for that support. She can't use it to buy something different.
You still get choices. You can choose your provider. You can also choose how many sessions you buy, within your budget.
The wording in your plan matters. If your plan funds "therapy supports" as a total amount, the NDIA says you can choose the therapy that best suits your needs, such as physiotherapy or occupational therapy.
Flexible funding works differently. It can move between categories in the same budget, but never across budgets. Read more in stated vs flexible supports and moving funding between categories.
How do I use my Capacity Building budget well?
- Link each support to a goal in your plan.
- Keep reports and progress notes from therapists and other providers. They help show what's working at your next plan review.
- Check what's left before you book more sessions.
- Ask for a plan implementation meeting if you're unsure. The NDIA says you can ask at any time by calling 1800 800 110.
What mistakes get claims rejected?
- Claiming a Capacity Building support from Core, or the other way round.
- Using stated funding for a different support.
- Booking more sessions than your remaining funding covers.
Mistakes happen. If you think a claim was made from the wrong category, the NDIA says to call 1800 800 110 so it can help you fix it. Contact your plan manager or provider as soon as you notice.
How does a plan manager help with Capacity Building?
A plan manager pays your providers and keeps track of your spending. A good one checks invoices against your plan before paying, which helps catch these mistakes early.
At Kismet, we check each invoice against the right budget and category. We also track what's left, so you can plan your sessions ahead. Learn more in our complete guide to NDIS plan management.
FAQs
Can I use Capacity Building funding for Core supports?
No. Flexible funding can only move within its own support budget. Capacity Building funding is stated, so it can't pay for Core supports.
Which budget pays for therapy?
Therapy that builds your skills is usually funded from Capacity Building. Speech therapy and occupational therapy often sit in Improved Daily Living Skills. Some health supports, like exercise physiology, sit in Health and Wellbeing.
Does my plan manager's fee come out of Capacity Building?
Yes. Plan management is funded in the Choice and Control category. The NDIS Pricing Schedule 2026-27 sets a price limit of $104.45 a month. It lists only this monthly fee, with no set-up fee item. The fee comes from Choice and Control, not your therapy funding. See NDIS plan management fees.
What happens to unused Capacity Building funding?
If your plan has funding periods, unused funding rolls into the next period in the same plan. It won't roll over to a new plan. Read what happens to unused NDIS funding.
About the author
Matt Clements is the Chief Revenue Officer at Kismet Healthcare. He's focused on helping people find appropriate care and improving healthcare accessibility, one appointment at a time.
Want help keeping track of your Capacity Building budget?
If you're plan managed, Kismet's app shows each budget and what you've spent.