NDIS Guide
If you have an NDIS plan, you may have noticed a section called Capacity Building — but what it actually funds, and how you can use it, often isn’t explained clearly. Capacity Building supports are specifically designed to help you develop skills, increase independence, and work towards your long-term goals. This guide explains what all 9 categories cover, how this budget differs from Core Supports, and how to get the most out of it. For a broader overview, see our guide on NDIS budget categories.
What are NDIS Capacity Building supports?
Capacity Building supports are one of the three main budget types in an NDIS plan — alongside Core Supports and Capital Supports. While Core Supports fund day-to-day assistance, Capacity Building is specifically for activities that build your skills and independence over time.
The NDIA defines Capacity Building as supports that help you develop skills, confidence, and independence to do more for yourself. This might include speech therapy, occupational therapy, employment coaching, support coordination, or behaviour support — anything that builds functional capacity rather than just providing direct assistance.
Capacity Building funding is described as “stated supports” in your plan. This means each dollar is allocated to a specific category with a defined purpose. You can read the full description of Capacity Building supports on the NDIS website.
How Capacity Building differs from Core Supports
This is where many participants get confused. Core Supports is the most flexible budget in your plan — you can use it across its sub-categories (daily activities, community participation, consumables, and social and economic participation) without needing NDIA approval. Capacity Building does not work this way.
Core
Core Supports
Flexible across sub-categories. Funds everyday assistance — personal care, transport, community access, consumables. You can shift between sub-categories as your needs change.
CB
Capacity Building
Stated purpose per category. Each dollar is allocated to a specific category (e.g. Improved Daily Living, Employment). You need NDIA approval to move funds between categories.
Capital
Capital Supports
For assistive technology and home modifications. Most restricted budget — funds must be used for the specific item approved in your plan.
Understanding this distinction matters when planning how to use your funding. If your Improved Daily Living therapy budget runs out but your Increased Social and Community Participation budget has surplus, you cannot transfer the surplus without a plan variation.
What the 9 NDIS Capacity Building categories actually fund
Your Capacity Building budget can include funding across up to 9 categories, though most plans only include a few that are relevant to your goals. Here is what each category covers.
01
Support Coordination
Funds a support coordinator or specialist support coordinator to help you navigate your plan, connect with providers, and build your capacity to manage your supports independently.
02
Improved Living Arrangements
Supports for finding and maintaining suitable housing — including assistance with transitioning from hospital or institutional care to community living.
03
Increased Social and Community Participation
Funds programs and supports that help you build social skills, join community activities, and increase your engagement and participation outside the home.
04
Finding and Keeping a Job
Employment-related supports including work skills development, career planning, and assistance transitioning into employment or further education. Our guide to NDIS SLES covers one specific type of employment support for school leavers.
05
Improved Health and Wellbeing
Supports to help you develop healthy lifestyle habits, manage health conditions related to your disability, and maintain physical and mental wellbeing. Participants with a psychosocial disability often draw on this category for recovery coaching.
06
Improved Learning
Funds supports that help you access education and training — including assistance transitioning from school to post-school options.
07
Improved Life Choices
This category funds plan management — the support that helps you manage the financial and administrative side of your NDIS plan. A registered NDIS plan manager is funded here, and the NDIA allocates this as a separate line in your plan so it does not reduce funding for other supports.
08
Improved Daily Living
The most commonly funded CB category. Covers assessments, therapy, and training to build your functional capacity — occupational therapy, speech therapy, physiotherapy, psychology, and behaviour support. For a detailed breakdown, see our guide to NDIS Improved Daily Living.
09
Improved Relationships
Funds Positive Behaviour Support (PBS) — a specialist approach for participants whose behaviours of concern affect their daily life. A behaviour support practitioner develops a PBS plan to reduce risk and improve quality of life.
Who can access Capacity Building supports in their NDIS plan?
Capacity Building supports are included in your plan when the NDIA determines that they will help you work towards your stated goals. Not every participant receives every category — your plan reflects what is considered reasonable and necessary for your specific disability and goals.
Funding is usually based on evidence provided at your planning meeting. If your treating clinician, therapist, or support coordinator provides a detailed report linking a specific support to your goals, the NDIA is more likely to fund it. Vague requests without supporting evidence are less likely to succeed.
If a Capacity Building category you need is not in your current plan, you can request it at your next plan review — or request a mid-plan review via a Change of Circumstances request if your needs have changed significantly.
What happens to unspent Capacity Building funding?
Unspent Capacity Building funding does not roll over when your plan ends. Unlike some Core Supports, CB funding that is not used within the plan period returns to the NDIA. This is one of the most overlooked aspects of managing a Capacity Building budget.
This makes it important to engage providers and start using your Capacity Building supports early in your plan, rather than waiting until the final months. If you repeatedly underspend on a category, the NDIA may reduce that allocation at your next plan review on the basis that you do not need it.
How to make the most of your Capacity Building budget
The participants who get the most from their Capacity Building budget tend to have three things in place: clear goals, suitable providers, and someone tracking spending against each category.
- Set goals before your planning meeting — the more specific your goals, the more targeted your CB funding will be. Vague goals produce vague funding.
- Engage providers early — don’t leave CB supports until the last quarter of your plan. Start within the first two months.
- Track spending by category — CB funding cannot move between categories freely, so knowing where you stand in each bucket avoids surprises.
- Review progress at the midpoint — if therapy or employment goals are not progressing, a mid-plan check with your support coordinator is worth doing before the plan ends.
A good plan manager tracks your Capacity Building budget alongside your Core Supports, flags when any category is approaching its limit, and ensures invoices are coded to the correct support line. Our independent comparison of NDIS plan managers covers the providers best rated by participants for active budget management — worth reviewing if you have a complex plan with multiple Capacity Building categories.
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Find my plan manager — submit a free inquiryFrequently Asked Questions About NDIS Capacity Building
What is the difference between Core Supports and Capacity Building?
Core Supports fund day-to-day assistance — personal care, community access, consumables. Capacity Building funds activities that build skills and independence over time — therapy, employment support, support coordination. Core Supports is flexible across its sub-categories; Capacity Building is stated, meaning each dollar is allocated to a specific category and cannot be freely moved between categories.
Can I move funding between Capacity Building categories?
No — not without NDIA approval. Unlike Core Supports, Capacity Building funding is allocated to specific categories with a stated purpose. If you want to redirect funds from one CB category to another, you need to request a plan variation or wait for your next plan review. This is why tracking spending in each category matters throughout the plan period.
Do I need a referral to access Capacity Building supports?
In most cases, no referral is needed to engage a provider once CB funding is in your plan. However, some categories — such as Improved Relationships (Positive Behaviour Support) — require a qualified practitioner assessed by the NDIS Quality and Safeguards Commission. Your support coordinator can help you find appropriate providers for each category.
What does Improved Daily Living actually include?
Improved Daily Living is the most commonly funded Capacity Building category and covers assessments, therapies, and training that build your functional capacity. This includes occupational therapy, speech therapy, physiotherapy, psychology, and behaviour support assessments. The goal is not ongoing care but building your skills to function more independently over time. See our full guide on NDIS Improved Daily Living skills.
Does plan management come out of my Capacity Building budget?
Plan management is funded under the Improved Life Choices category within Capacity Building, but the NDIA treats it as a separate line in your plan — it does not reduce funding available for your other supports. You can learn more about how plan management works at what is NDIS plan management. It costs participants nothing extra, with funding set by the NDIA at approximately $104.45 per month.
What happens if I don’t use all my Capacity Building funding?
Unspent Capacity Building funding returns to the NDIA at the end of your plan period — it does not roll over. Consistent underspending in a category can also result in reduced funding at your next plan review, as the NDIA may conclude the support is not needed at the funded level. Engaging providers early and tracking spending throughout the plan are the most effective ways to avoid this.