NDIS Funding Periods in 2025: What Changed and What It Means for Your Business
The NDIS is changing how funding is released, and if you're a service provider, these updates could impact your invoicing, cash flow, and client conversations.
Starting in May 2025, the NDIS began rolling out a new funding model called "funding periods", also known as tranching.
If you're feeling confused about what that means (or want to know how it affects you), you're not alone.
Let’s break it down...
What Are NDIS Funding Periods?
Previously, most participants received their full NDIS plan funding upfront, either in their self-managed portal or funding managed by their plan manager.
With funding periods, participants will now receive their funds in smaller, scheduled instalments throughout their plan duration, typically every quarter; however, this will largely depend on participant to participant.
This means:
- No more bulk funding at the start of the plan
- Providers need to be mindful of remaining budgets each quarter
- Participants will need more help managing their money over time
Why Has the NDIS Introduced Tranching?
The goal is to reduce:
- Overspending too early in the plan
- Underutilisation by the end of the plan
- Fraud and mismanagement of funds
According to the NDIA, this change will help participants budget their full plan more effectively. Well, that is the goal, anyway.
The system is rolling out gradually, with plan-managed and self-managed participants affected first.
How Does This Impact You as a Provider?
Let’s keep it real... this change might cause some growing pains for you and your cash flow.
Here’s what you need to watch:
- Delays in payment approvals if the funding for that period has run out
- More frequent discussions with support coordinators or plan managers about available funds, which means more frequent service agreement creation and renewals
- Invoice adjustments if a participant’s funds for that period are capped
Providers who don't understand tranching may accidentally overservice or submit invoices that bounce, leading to frustration and delays.
What You Can Do to Stay Ahead
- Ask upfront:
Check if your client is affected by funding periods and how often their funds are released.
*Usually, plans created in or after May 2025 will have tranching applied. This is only applied to PACE self-managed/plan-managed participants.
- Use clear service agreements:
Make sure your agreements explain payment terms and client responsibilities in plain, non-NDIS Jargon English.
- Track usage closely:
Keep a simple record of hours or services used each month. This helps you avoid awkward “uh-oh” moments if funding dries up.
- Educate your team:
If you work with a team or subcontractors, brief them on these changes so everyone’s on the same page.
What we don't know, yet
At this stage, it’s still unclear whether service providers can bill for services delivered during a previous funding release period. This means there’s uncertainty around whether unpaid claims can be reclaimed once a participant’s funding period rolls over.
Tools That Can Help
At Launchly, we’ve created NDIS-compliant service agreement templates and bundle packs that include invoicing guides, tracking tools, and client handouts—all designed to help you run your business efficiently, even as the rules change.
➡️ Check out our Support Worker Bundle
➡️ Explore our Business Starter Kit
Final Thoughts
NDIS tranching might sound scary at first, but it’s really just a new rhythm to get used to. With the right systems and communication in place, you’ll stay on top of funding, and your business will run smoother for it.
Have questions about how to update your service agreements or communicate this to clients? Drop us a message or explore our plug-and-play templates that make staying compliant easy.
Looking for a virtual assistant to stay on top of your admin?
Launchly now offers NDIS virtual assistant services to help you keep on top of things.
---> Learn more here