The National Disability Insurance Scheme (NDIS) aims to provide Australians with disability the necessary supports to enhance independence, social participation, and quality of life (NDIS Act 2013). Funding allocations reflect each participant’s functional requirements and personal goals. However, if the allocated funds are significantly underutilised, participants risk seeing those supports reduced—or in some cases, forfeited—during future plan reviews (National Disability Insurance Agency [NDIA] 2022). In this article, we explore how and why NDIS funds can be lost if participants do not use them, the impacts of underutilisation on future plans, and practical steps to safeguard against losing crucial supports.

Keywords: NDIS funding, Underutilisation, Plan reviews, Capacity-building supports, NDIS Act 2013, Service agreements, Telehealth psychology, Disability advocacy, Participant empowerment

NDIS funding is designed to address disability-related needs, from therapy and assistive technologies to capacity-building initiatives (Australian Institute of Health and Welfare [AIHW] 2022). By fully engaging in these supports, participants can pursue personal aspirations, improve daily living skills, and enhance community inclusion.

The NDIA conducts regular plan reviews, assessing how effectively participants use their funding to achieve stated goals (NDIA 2022). If a participant routinely leaves a large portion of their plan unused, this underutilisation may be interpreted as evidence that the allocated supports are unnecessary. Consequently, the NDIA may reduce the budget in the subsequent plan or question the relevance of particular supports.

Consistently using NDIS-funded services provides participants with valuable feedback regarding what works and what doesn’t. This information enables more precise plan adjustments during reviews, ensuring that supports remain aligned with evolving needs (Department of Social Services 2021).

Under the NDIS, significant underutilisation—failing to use a substantial portion of one’s funding throughout the plan period—can signal to the NDIA that the supports are not needed or are over-funded (NDIA 2022). During plan reassessment, the Agency might reduce or remove these underused categories, effectively decreasing overall funding in the next plan.

NDIS plans typically run for 12 or 24 months, after which any unused funding does not automatically roll over (NDIS Act 2013). If participants don’t engage required supports before a plan’s expiry date, the unspent amount is lost, and there is no guarantee it will be reinstated at the same level in a subsequent plan (NDIA 2022).

In cases where a participant’s circumstances or goals have changed, certain supports may no longer be relevant. If participants don’t communicate these changes or update their goals, the NDIA may deem the entire plan (or parts of it) as mismatched and adjust future funding accordingly (APS 2023).

When funding diminishes, participants may struggle to afford essential therapies, assistive technology updates, or capacity-building services (AIHW 2022). Delays in accessing crucial interventions can lead to deteriorating health outcomes, reduced functional capacity, or isolation.

Supports such as psychological counselling, physiotherapy, or occupational therapy are most beneficial when provided consistently. Funding reductions can interrupt therapy plans mid-stream, hindering progress (APS 2023).

Reduced supports can place added financial pressure on participants and families, who may attempt to pay for needed services privately. This financial strain, combined with uncertainty around future funding, can exacerbate stress and mental health challenges (AIHW 2022).

Before each plan review, participants should clarify their current aspirations and any changed circumstances. Having specific, measurable goals linked to disability supports encourages consistent engagement with services (Department of Social Services 2021).

Establishing open communication with support coordinators, therapists, and other providers helps keep track of progress. If obstacles—like scheduling conflicts or lack of transport—prevent full usage, early intervention can address these issues (APS 2023).

NDIS participants can enter into service agreements with providers, detailing the scope of services, session frequency, and billing structure (NDIA 2022). Service bookings on the NDIS portal also help track usage, enabling participants and providers to monitor how much funding remains.

For participants facing mobility, geographic, or time constraints, Telehealth and other flexible delivery methods may facilitate consistent therapy engagement (APS 2023). Embracing technology can minimise missed appointments and thus reduce underutilisation.

If a participant finds that certain supports are no longer suitable, or that new needs have emerged, requesting a plan review can ensure the current funding aligns with reality (NDIS Act 2013). Keeping the NDIA informed of significant life changes prevents unused or unnecessary allocations.

LACs and support coordinators can provide insights into how best to utilise funds, suggest suitable providers, and troubleshoot barriers (NDIA 2022). Engaging these professionals helps participants remain proactive about plan management.

Many participants benefit from connecting with others in peer support groups—whether in-person or online (AIHW 2022). These networks offer shared experiences, practical advice, and encouragement, reducing the likelihood of disengagement.

If the NDIA unexpectedly reduces or removes funding, participants have the right to request an internal review or appeal the decision. Disability advocacy organisations and community legal centres can guide individuals through these processes, ensuring fair representation (Department of Social Services 2021).

Underutilisation of NDIS funding can lead to financial and service disruptions that jeopardise a participant’s independence and well-being. By setting clear goals, maintaining active communication with providers, and embracing flexible service options, participants can maximise their funding and demonstrate genuine need during plan reviews (NDIA 2022). Staying informed, seeking timely plan adjustments, and engaging local support networks all contribute to effective NDIS utilisation—helping avoid funding losses and ensuring that the scheme serves its primary purpose: empowering Australians with disability to live fulfilling, meaningful lives.

• Australian Institute of Health and Welfare (AIHW) 2022, People with Disability in Australia, AIHW, https://www.aihw.gov.au/.
• Australian Psychological Society (APS) 2023, NDIS and Psychology Services, APS, https://psychology.org.au/.
• Department of Social Services 2021, National Disability Strategy 2021–2031, Australian Government, https://www.dss.gov.au/.
• NDIS Act 2013 (Cth).
• National Disability Insurance Agency (NDIA) 2022, Using Your NDIS Plan, NDIA, https://www.ndis.gov.au/.

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