Financial Planning Tips for NDIS Participants and Their Families
- Shaun Chaudhry
- Jun 13, 2025
- 3 min read
Summary:
Understand how NDIS funding works and who manages it
Budgeting tips to make the most of your plan
Importance of good record-keeping for audits and compliance
Common financial mistakes to avoid
How a financial advisor or accountant can support long-term success
Introduction: Empowering Families with Better Financial Planning
The National Disability Insurance Scheme (NDIS) is designed to improve the lives of Australians living with permanent and significant disabilities. While the scheme provides essential funding for support services, it also brings with it a layer of financial responsibility for participants and their families—especially when managing plans independently.
Financial planning isn’t just about staying compliant with the NDIS; it’s about making your funding work smarter and helping you or your loved one live more independently, comfortably, and confidently.
1. Understand Your Funding Categories
NDIS funding is split into three main support categories:
Core Supports – daily activities, transport, consumables
Capacity Building – improving skills and independence
Capital Supports – assistive technologies or home modifications
Make sure you understand what each category covers and how much is allocated to each. This helps avoid overspending in one area and underutilising another.
2. Choose the Right Management Option
You can manage your NDIS funds in one of three ways:
NDIA-managed – NDIA pays providers directly
Plan-managed – a registered plan manager handles financial admin
Self-managed – you (or a carer) manage invoices, payments, and budgeting
Each method has different levels of flexibility and responsibility. Self-managed plans offer more control but require strong record-keeping and planning.
3. Create a Clear Budget Aligned with Goals
A personalized NDIS plan is based on your individual goals. Align your spending with those goals by creating a budget for each support category.
Tips:
Track how much is being spent monthly
Review usage every quarter to avoid funding gaps
Leave room for unexpected or one-off supports
Using spreadsheets or NDIS-specific budgeting apps can help maintain visibility.
4. Keep Accurate Records and Receipts
Good financial records are essential for:
NDIS audits or reviews
Proving the legitimacy of purchases
Staying compliant with funding rules
If you're self-managing, keep:
Invoices
Receipts
Bank statements
Service agreements
You’ll need to store these records for at least five years in case of review.
5. Know What You Can (and Can’t) Claim
Not all expenses are claimable under the NDIS. The general rule: the purchase must relate directly to the participant’s disability and be considered reasonable and necessary.
Examples of eligible expenses:
Support workers
Speech therapy
Assistive equipment
Incontinence products
Examples of ineligible expenses:
Everyday living costs (e.g., rent, groceries)
Items not directly related to your plan goals
When in doubt, ask your plan manager or advisor before spending.
6. Avoid These Common Financial Mistakes
Overspending early in the plan year
Forgetting to track small expenses
Not using available support funds (underutilisation)
Failing to get quotes for capital purchases
Not reviewing or adjusting the plan as needs change
7. Seek Professional Support
Working with an experienced accountant or financial advisor familiar with NDIS can make a big difference. They can help you:
Set and monitor budgets
Prepare for plan reviews
Navigate complex expenses or funding issues
Stay organized and compliant
Understand tax implications for carers or provider
Conclusion: Get the Most from Your NDIS Plan
Financial planning is key to making the most of your NDIS funding—not just for compliance, but for achieving real-life goals. With a thoughtful budget, accurate records, and the right advice, you can use your NDIS plan to build a better future with confidence and control. Need help navigating your NDIS housing options? Get in touch with us at Proactive Plan Managers – we’re here to support you every step of the way.
Proactive Plan Managers
📞 0434 425 855
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