If you are a support coordinator at a small-to-medium NDIS provider, you are probably fielding questions about flexible budgets that your organisation was not set up to answer three years ago. Participants want to know what the I-CAN planning tool means for how their funds can be used. Support coordinators are fielding questions about budget shifts, support categories, and whether the old restrictions still apply.
This guide is for coordinators and providers who manage plan-related conversations without specialist financial planners on staff. It covers what has changed, what flexible budgets mean in practice, and how to explain the key concepts to participants in a way that is accurate, useful, and honest about the limits of your role.
What changed with NDIS budgets in 2026
The NDIA's move toward flexible budgets is part of the broader Independent Review implementation. The I-CAN (Instrument for the Classification and Assessment of Support Needs) planning tool replaced the previous planning approach for new participants entering the scheme. The central change is that participants now receive a single flexible budget rather than strictly siloed support categories in most cases.
Key change: Under the old system, funds were allocated to specific support categories (Core, Capacity Building, Capital) with limited ability to shift between them. Under the flexible budget model, participants have significantly greater discretion about how their funding is used, within registered support types and NDIS rules.
For support coordinators, this means the conversations you have with participants about their plans have fundamentally changed. Participants may ask why they can't simply use their remaining Capital funds to buy more Core supports, or whether there are still sub-categories they need to track. The answer requires you to understand the new model well enough to explain it clearly without misrepresenting what the NDIA permits.
What stays the same
Registration requirements for providers remain unchanged - providers must still be registered for the support types they deliver
Reasonable and necessary criteria still apply to all supports
Participants cannot use NDIS funding for items excluded under the rules (e.g. day-to-day living costs not related to disability)
Specialist Disability Accommodation (SDA) and Supported Independent Living (SIL) remain separately assessed and funded
What coordinators need to understand about I-CAN
The I-CAN tool is used by planners during plan development to assess participant functional capacity and determine the level of supports needed. It is not something coordinators or providers use directly, but understanding its outputs helps you interpret plans and have accurate conversations with participants.
Key things to know
I-CAN assessments feed into the planning decision but are one input among several - the planner, the participant, and any evidence submitted all contribute
Participants can request a review if they believe their I-CAN assessment did not accurately capture their functional needs
The transition to I-CAN for existing participants is phased - not all participants are on the new planning model yet
For SIL participants, assessment processes remain more complex and separated from the core flexible budget framework
Important for coordinators: You are not expected to be an expert on I-CAN methodology. What you need to be able to do is explain to participants that the assessment tool looks at functional capacity across 12 domains, and that if they believe their needs were underestimated, they have a right to request a review or reconsideration.
Explaining flexible budgets to participants: a practical framework
The most common confusion participants have is about what 'flexible' actually means. Many assume it means they can use their funds for anything disability-related. That is not accurate. Here is a framework for explaining it:
| What participants can do | What participants cannot do | Where it gets complicated |
| Choose which registered providers they use for funded supports | Use NDIS funds for daily living costs unrelated to disability support needs | Deciding whether a specific item counts as disability-related - always check the NDIS rules or contact the NDIA |
| Shift funds between some support types with flexible budgets | Fund supports from unregistered providers in plan-managed or NDIA-managed plans without appropriate approvals | Using flexible budgets across SDA and SIL - these are separately assessed and do not flex into general budgets |
| Request a review if their plan does not adequately reflect their needs | Access funds before a plan is formally approved | Determining what is 'reasonable and necessary' for a specific item - participants may seek a formal ruling from the NDIA |
Your role and its limits
A critical point for coordinators at small-to-medium providers: your role is to support participants to understand their plan and connect with appropriate supports. It is not to provide financial advice, legal advice, or to make formal determinations about what the NDIA will fund.
When participants ask questions you cannot answer with confidence, the correct response is to direct them to the NDIA (1800 800 110) or to a plan manager if they have one. Providing incorrect information about what is fundable is a risk to the participant and to your organisation.
Small-to-medium reality: Your coordinators are handling plan-related questions for potentially dozens of participants simultaneously, without specialist financial planners on staff. The most protective thing you can do is be clear about the boundary between coordination (your role) and financial advisory (not your role).
Red flags to watch for in participant plans
Coordinators working with participants across SIL and community access should be alert to several plan-related issues that frequently arise:
Budget exhaustion before plan end date - particularly in SIL settings where costs are predictable, early exhaustion often indicates an error in plan funding levels or a change in participant needs that warrants a review
Plans that do not reflect current support needs - particularly for participants with changing health conditions or increasing support complexity
Missing or insufficient Capacity Building funding for participants who have goals around independence, employment, or community participation
Plans where flexible budget rules have changed mid-plan due to the I-CAN transition - some participants may be on transitional arrangements that create confusion about what the rules are
When to refer to a plan manager or financial intermediary
Not every plan-related question is a coordination question. The following situations generally warrant a referral to the participant's plan manager (if they have one) or to the NDIA directly:
The participant is asking whether a specific item is fundable under their plan
There is a dispute about a plan decision or funding level
The participant wants to make a formal change to their plan management type
Funds are running low and the participant needs to understand their options
The participant is considering a significant change in their living arrangement or support model
Documenting conversations about plans
Regardless of the outcome, coordinators should document plan-related conversations with participants clearly and contemporaneously. The minimum documentation standard should include:
Date and nature of the conversation
What information was provided and by whom
Any actions agreed - including referrals made
Any concerns raised by the participant about their plan
This documentation matters both for participant safety and for your organisation's compliance obligations under the NDIS Code of Conduct. If a participant later experiences an adverse outcome related to a plan decision, contemporaneous notes demonstrate that your organisation responded appropriately to what was known at the time.
This Guide was researched and written with the assistance of AI models. It is intended to spark conversation and further independent research. Ausmed advises that you consult primary official sources before making any decisions relating to the content of this Guide.
