If you’ve ever arrived at the end of an NDIS plan year with Capacity Building funding unused, you might have consoled yourself with the thought: “It’ll roll over. We’ll use it next time.”
That option is going away.
As part of the 2026 NDIS reforms, the Government is ending plan rollovers. Once your current plan concludes, unspent NDIS funds will not carry over into your next plan. What’s left behind stays behind.
This is one of the most practical, immediate changes coming out of the NDIS reform process — and it affects families right now, not just when the new framework fully rolls out. If you have psychology support funding in your plan that you haven’t used, it’s worth paying attention.
Important Note: The changes described in this post are contained in legislation currently before Parliament. They are expected to pass in the coming weeks, but if you’re reading this close to publication, it’s worth confirming the current status at ndis.gov.au
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What’s Actually Changing and When
The NDIS is undergoing significant reform following the 2023 Independent Review. While the new framework planning model is delayed until 1 April 2027 (following feedback from the disability community asking for more time), other changes are already in motion.
The end of plan rollovers is one of them. Under the current system, some participants have carried unspent funds across into a continued plan. That practice is being removed to ensure that budgets genuinely reflect a participant’s current support needs, not what was approved 12 or 24 months ago.
Here’s the distinction worth understanding: within your current plan, unspent funds can roll over between funding periods. So, if you don’t use everything in one quarter, it carries into the next. What’s ending is the rollover between plans. Once your current plan concludes, anything left unspent won’t follow you into the next one.
Separately, from 1 October 2026, budgets for social and community participation and some Capacity Building daily activities will begin to be progressively adjusted. The Government has stated that supports essential to critical care and daily living needs will not be affected — but it’s a further reason to use your current funding with intention.
If you’re unsure exactly what these changes mean for your specific plan, your support coordinator or the NDIA directly can help you get clarity. You can also read more at ndis.gov.au.
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What Unspent Capacity Building Funding Actually Means
Capacity Building — Improved Daily Living is the funding category that covers psychology support under the NDIS. It’s designed to help participants build skills, increase independence, and work toward the functional goals in their plan.
Unlike Core Support funding, Capacity Building budgets are category-specific. You can’t shift unused psychology funding across to Core, and you can’t save it for next year’s plan. Within your current plan, unspent funds from one funding period can roll into the next period in the same plan. But when the plan itself ends, anything left unspent returns to the NDIA.
For many families, this funding goes unused for understandable reasons — long waitlists, uncertainty about how to spend it, providers who weren’t the right fit, or simply not knowing what psychology support could look like for their child or family. The changes ahead make it more important than ever to actively plan how to use what’s been allocated.
How to Make the Most of Your Capacity Building Funding
Whether you’re an adult participant managing your own plan, or a parent or carer navigating funding for your child, the principle is the same: Capacity Building funding works hardest when it’s used with intention. The goal isn’t to spend for spending’s sake. NDIS funding should always connect to your plan goals and your genuine needs. But if psychology support is funded in your plan and that funding is sitting untouched, here are some meaningful ways to put it to work.
1. Book a block of appointments
If you’re seeing a psychologist sporadically or have struggled to maintain consistency, now is a practical time to book a block of appointments and commit to regular support. Consistency matters for building emotional regulation skills. The gains compound over time, and regular appointments help you, your child (and you as a parent) develop real momentum.
2. Use the remaining time for a progress check-in
Even if your child is going well, a psychology appointment can be used to review progress toward plan goals, document functional gains, and identify what support might be needed in the next plan. This kind of evidence-building appointment is genuinely valuable at review time. It gives your support coordinator and the NDIA a clear picture of what’s been achieved and what’s still needed.
3. Start supports you’ve been meaning to begin
If psychology support is sitting in your plan but you haven’t started yet, the reform context is a real prompt to begin. You don’t need to have everything figured out before your first appointment. A good psychologist will start by getting to know your child and your family — building the relationship and the baseline understanding that makes all the work that follows more effective.
4. Support yourself, not just your child
Carer wellbeing is a genuine funding consideration under some NDIS plans. If you’re a parent or carer, and have put your own mental health support on the back burner, it’s worth checking with your support coordinator whether your plan includes any provision for this — and if so, using it.
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A Note on Psychology Support and NDIS Funding
Psychology support under the NDIS is funded when it is directly linked to a participant’s disability and their plan goals. Specifically, it supports capacity building and improved daily functioning. It is distinct from the mental health support funded through Medicare’s Better Access scheme, which covers clinical psychology for general mental health concerns.
If you’re unsure which pathway is right for your family (or whether your psychology funding sits under NDIS or Medicare), speak with your GP, your support coordinator, or the NDIA. The two systems fund psychology for different purposes, and understanding the difference helps you get the most from both.
You can read more about how NDIS psychology funding works in our post: Does the NDIS Cover Psychology? What Families Need to Know.
How Body & Mind Can Help
At Body & Mind, we offer Telehealth psychology support for NDIS participants across Australia — with no waitlist. If you have Capacity Building funding in your current plan and you’re not sure how to use it, our team is here to help you work out whether psychology support is the right fit. And what that could look like for you, your child or your family.
We work with a broad network of allied health professionals, including occupational therapists and speech therapists. So, if your child needs wrap-around support, we can help connect the pieces. Participants in our programs also receive complimentary access to Calm Premium. The app includes sleep stories, guided meditations, breathing exercises, and mindful movement tools to support regulation at home between appointments.
If you’d like to find out more, book online or reach out to our team — we’d love to help you make the most of what’s in your plan.
Disclaimer
This article provides general information only and is not a substitute for professional advice. NDIS funding eligibility and the availability of psychology support varies depending on your individual plan, goals, and circumstances. Body & Mind does not assist with applying for or managing NDIS plans. Please speak with your support coordinator, plan manager, or the NDIA directly to understand what support is available under your plan. If you are experiencing a mental health crisis, please contact Lifeline on 13 11 14 or your GP.
A note on NDIS funding
NDIS psychology support is most commonly funded under Capacity Building — Improved Daily Living when it is directly linked to a participant’s disability and their NDIS plan goals. However, funding categories can vary. Not all psychology is funded by the NDIS. Some supports are more appropriately accessed through Medicare’s Better Access scheme. What’s right for you will depend on your individual plan and circumstances. We recommend speaking with your GP, support coordinator, or the NDIA to confirm your funding options before booking.