Guide · NDIS funding · Sydney

What is NDIS Capacity Building funding?

Capacity Building (CB) is one of the three NDIS funding categories, alongside Core and Capital. Where Core funding covers your day-to-day supports and Capital covers equipment and home modifications, Capacity Building is different in purpose: it funds supports that build your skills, independence, or ability to participate in the community over time. Understanding how it works — and how it differs from Core — helps you make the most of what’s in your plan.

The seven Capacity Building support categories

CB funding is not a single pool. It is divided into seven separate categories, each with a specific purpose. You can only spend CB funding within the category it was allocated to — unlike Core budgets (from July 2026), CB funds cannot move between categories.

Category What it funds
CB Daily Activity Therapy, training, and supports that help you manage daily tasks more independently. Includes occupational therapy, physiotherapy, speech therapy, and specialist behaviour support.
CB Social, Community & Civic Participation Programs and support that develop your skills to participate in community, social, or recreational activities independently over time — distinct from Core-funded community access.
CB Employment Supports to help you find, keep, or advance in employment — including vocational training, job coaching, and workplace modifications assessment.
CB Relationships Behaviour support, positive behaviour support plans, and supports to help you build and maintain relationships.
CB Health & Wellbeing Exercise physiology, dietetics, and other allied health supports that address the impact of your disability on your health and wellbeing.
CB Learning & Life Transitions Supports for transition periods — school to work, hospital to home, or major life changes. Includes transition planning and skill development for new life stages.
CB Support Coordination / Specialist Support Coordination Funding for a support coordinator or specialist support coordinator to help you implement your NDIS plan, connect with providers, and navigate complex situations.

How CB differs from Core funding

The most important practical difference between Capacity Building and Core is flexibility. Under the NDIS’s Flexible Supports model (from 1 July 2026), Core budgets are flexible — you can move money between Core categories (daily activities, social and community participation, consumables, transport) to match your week-to-week needs.

Capacity Building budgets work differently. CB funding is locked to each category. Your CB Daily Activity budget cannot be used to pay for CB Employment supports, and your CB Support Coordination budget cannot top up your CB Relationships funding. Each category is a separate allocation, and you need to use it within the category it was set up for.

The other major difference is the purpose of the support. Core funds ongoing supports you need to manage daily life — things that repeat because the need repeats. Capacity Building funds supports where the goal is to improve your capability over time. A support worker helping you shower every day is Core. An occupational therapist working with you over 12 sessions to develop strategies to shower independently is Capacity Building.

Who gets Capacity Building funding?

CB funding is not automatic — it is included in your plan when the NDIA determines it is reasonable and necessary given your goals and disability-related needs. Most participants have at least some Capacity Building in their plan, but the specific categories and amounts depend on what evidence was presented at the planning meeting and what goals are in the plan.

To have CB funding included or increased in your plan, you generally need:

  • A clear goal that the CB funding will help you work toward
  • Evidence from a treating professional or allied health provider that the support is appropriate for your disability and will contribute to your independence or skill development
  • A link between the support and the specific CB category (for example, OT assessment links to CB Daily Activity)

If you have a support coordinator, they can help you identify what CB supports might be appropriate and prepare the evidence needed to request them at your next plan review.

Common uses of Capacity Building funding

In practice, the CB funding categories that most participants use most often are:

CB Daily Activity (therapy)

This is the most commonly used CB category. It pays for occupational therapy (OT) sessions and assessments, physiotherapy, speech pathology, psychology and mental health therapy, and specialist behaviour support. If you need an OT assessment for assistive technology or home modifications, it is funded here (not from Core).

CB Support Coordination

If you have support coordination funded in your plan, it is almost always funded under this CB category. Support coordination funded here pays for your coordinator’s time to help you understand and implement your plan, find providers, resolve issues, and prepare for plan reviews. Specialist Support Coordination (for higher-complexity needs) also sits here.

CB Health & Wellbeing

Exercise physiology — structured exercise programs designed to improve your functional capacity — is funded under this category, not under Core. Dietetics and other allied health supports that specifically address the disability impact on your health may also be funded here.

CB Employment

For participants who have employment as a goal, CB Employment can fund job coaching, supported employment preparation, and certain vocational training. Note that this is separate from the NDIS’s Employment Supports category and from Disability Employment Services (DES), which is funded by a different government program.

What happens to unused CB funding?

Capacity Building funding does not roll over between plans. Any CB budget that is unspent when your plan ends is gone — it cannot be carried into your next plan. This matters for two reasons. First, it is a reason to use your CB budget actively during the plan period and not leave it to the last month. Second, the NDIA sometimes uses low utilisation of CB funding as a signal that the budget was more than needed, which can affect amounts in your next plan.

If you are consistently struggling to use your CB funding — because you cannot find a provider, because therapy waitlists are long, or because the allocated category does not match your actual needs — raise this with your support coordinator or at your next plan review. There are often ways to adjust how the funding is structured.

For support coordinators and LACs: When writing functional capacity or goal-setting evidence for a participant, linking the CB category explicitly to each goal helps the NDIA planner understand the connection. “This participant would benefit from CB Daily Activity (OT) to achieve their goal of managing personal care with less assistance” is clearer than a generic therapy recommendation. Tegrity provides support coordination and can work with coordinators to ensure Aboriginal and Torres Strait Islander participants have CB appropriately funded and utilised.

Frequently asked questions

What is the difference between NDIS Capacity Building and Core funding?

Core funding covers your day-to-day support needs — assistance with personal care, community access, household tasks. Capacity Building funds supports that build your skills and independence over time. The key practical difference is flexibility: Core budgets (from July 2026) are flexible and can move between categories, while Capacity Building budgets are locked to their specific support category.

Is Capacity Building funding automatic in every NDIS plan?

No. CB funding is included in your plan when the NDIA determines it is reasonable and necessary given your goals and disability-related needs. Many participants have some Capacity Building, but the amounts and categories vary. If you believe you need CB funding that is not currently in your plan, raise it at your next plan review with supporting evidence from an allied health professional.

Can I use Capacity Building funding to pay for an occupational therapist?

Yes, in most cases. Occupational therapy is typically funded under CB Daily Activity, which covers therapy and training to help you manage daily tasks more independently. If you have CB Daily Activity in your plan, you can use it to pay for OT assessments, therapy sessions, and assistive technology recommendations. OT cannot be paid from Core funding.

What happens to unused Capacity Building funding at the end of my plan?

CB funding does not roll over between plans. Any unspent CB funding expires when your plan ends. Use your CB budget actively during the plan period — book therapy appointments and assessments before your plan end date. Low utilisation of CB funding can also affect future plan amounts, so if you are having trouble using it (waitlists, provider gaps), document this and raise it at your next review.

Related guides

Need help understanding or using your Capacity Building funding?

Tegrity provides support coordination across Sydney. We help participants understand their plans, connect with allied health providers, and make the most of their CB budgets.