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Improved Daily Living NDIS: What It Funds & How to Use Your Budget (2026)
If your NDIS plan has a budget line called “Improved Daily Living,” you’re looking at one of the most powerful — and most under-used — parts of Capacity Building funding. In fact, Improved Daily Living NDIS funding pays for everything from occupational therapy and psychology through to speech pathology, skill development training and even assistive technology mentoring.
However, many participants barely touch their Improved Daily Living budget. Sometimes the terminology feels intimidating. Other times, families don’t know what therapies the category actually covers. So as a result, thousands of dollars in approved funding go unused each year — money that could have gone into building real independence.
This guide explains Improved Daily Living NDIS funding clearly, using the 2025-26 official figures from the NDIA’s Pricing Arrangements and Price Limits (PAPL v1.1, published 14 October 2025). You’ll see what’s covered, the exact hourly price caps for every supported profession, who qualifies, and how to use your Improved Daily Living budget effectively — whether you’re in Sydney or anywhere else in Australia.
What Is Improved Daily Living NDIS Funding?
Improved Daily Living is Support Category 15 within the Capacity Building NDIS budget. Unlike Core Supports (which help with day-to-day tasks), Capacity Building funds skill development — supports aimed at growing your long-term independence rather than just getting you through today.
So in other words, Core Supports = doing tasks with you; Improved Daily Living = teaching you to do them yourself (where that’s your goal) or reducing the impact of your disability through therapy.
The official definition
According to the NDIS Pricing Arrangements and Price Limits 2025-26 v1.1 (page 92):
“This support category includes assessment supports, training supports, strategy development supports, and therapeutic supports (including Early Intervention Supports for Early Childhood) to assist the development of, or to increase, a participant’s skills and their capacity for independence and community participation.”
Therefore, Improved Daily Living funding isn’t one single service — it’s an umbrella category covering 5 distinct types of support.
The 5 Things Improved Daily Living NDIS Funding Covers
Because Improved Daily Living is broad, understanding its five sub-categories helps you plan your supports more strategically.
1. Therapy Supports (age 9 or older)
This is the biggest part of Improved Daily Living for most adults. So if you’re working with an occupational therapist, physiotherapist, psychologist, speech pathologist or exercise physiologist — they’re typically billing your Improved Daily Living budget.
Currently, therapy supports under Improved Daily Living include:
- Occupational therapy (OT) — functional capacity assessments, home modifications advice, skill development
- Physiotherapy — mobility, strength, balance
- Psychology and counselling
- Speech pathology — communication, swallowing, social skills
- Exercise physiology — tailored fitness programs
- Dietetics — nutrition planning and food-related health
- Podiatry — foot and mobility-related care
- Social work — psychosocial skill building
- Art therapy, music therapy — creative therapeutic supports
- Audiology (also falls under Hearing Supports)
- Developmental educators, rehabilitation counsellors, orthoptists
2. Early Intervention Supports (for children under 9)
Additionally, Improved Daily Living includes Early Childhood Intervention supports for children with developmental delay or disability. These run through the same allied health professions listed above, but in early childhood education and family settings.
3. Community Engagement & Skill Development
Although most people think of therapies first, Improved Daily Living also funds practical skill-building:
- Skill development and training — including public transport training to help you travel independently
- Assistance with decision-making, daily planning and budgeting
- Community engagement assistance — one-on-one or group supports to help you engage in your community
- Training for carers or parents
4. Hearing Supports
Next, if your hearing loss is disability-related (not covered by Medicare MBS), Improved Daily Living funding pays for audiologist and audiometrist supports.
5. Disability-Related Health Supports (nursing)
Finally, Improved Daily Living includes nursing services — enrolled nurse, registered nurse, clinical nurse, clinical nurse consultant and nurse practitioner — where the nursing care responds to disability-related health needs that aren’t the normal responsibility of the health system.
Multidisciplinary Team Supports
Also, Improved Daily Living can fund coordinated multidisciplinary team approaches, and specialised driver training with a Driver Trained Occupational Therapist. Both require NDIA pre-approval.
Assistive Technology Mentoring
Lastly, AT Mentors — peer-support workers with lived experience of disability and AT — can also be funded through Improved Daily Living. The NDIS Guidelines define what AT Mentors do vs AT Advisors and Assessors.
Official 2025-26 Price Caps for Improved Daily Living NDIS Supports
Every support item in Improved Daily Living has a maximum hourly price cap set by the NDIA. The figures below come directly from the NDIS PAPL 2025-26 v1.1 (published 14 October 2025, valid from 24 November 2025). So these are the current National price caps — Sydney sits in the National tier.
Therapy Supports (age 9+) — most common NDIS rates
| Therapy type | National hourly cap | Support item |
|---|---|---|
| Psychologist | $232.99 | 15_054_0128_1_3 |
| Occupational Therapist | $193.99 | 15_617_0128_1_3 |
| Speech Pathologist | $193.99 | 15_622_0128_1_3 |
| Developmental Educator | $193.99 | 15_613_0128_1_3 |
| Social Worker | $193.99 | 15_621_0128_1_3 |
| Audiologist / Orthoptist / Rehabilitation Counsellor | $193.99 | 15_611/618/620_0128_1_3 |
| Dietitian | $188.99 | 15_062_0128_3_3 |
| Podiatrist | $188.99 | 15_619_0128_1_3 |
| Physiotherapist | $183.99 | 15_055_0128_1_3 |
| Exercise Physiologist | $166.99 | 15_200_0128_1_3 |
| Art Therapist | $156.16 | 15_610_0128_1_3 |
| Music Therapist | $156.16 | 15_615_0128_1_3 |
| Counsellor | $156.16 | 15_043_0128_1_3 |
⚠️ Important 2025 change: Art and Music Therapy rates dropped from $193.99 to $156.16 per hour in the October 2025 PAPL update. If your service agreement still quotes $193.99, it’s out of date.
Therapy Assistants (delivered under therapist supervision)
| Support | National hourly cap |
|---|---|
| Therapy Assistant Level 1 (direct supervision) | $56.16 |
| Therapy Assistant Level 2 (works independently) | $86.79 |
Nursing Supports (disability-related health)
| Nurse type | Weekday daytime | Saturday | Sunday | Public holiday |
|---|---|---|---|---|
| Enrolled Nurse | $99.88 | $142.48 | $163.79 | $185.08 |
| Registered Nurse | $123.65 | $176.47 | $202.87 | $229.27 |
| Clinical Nurse | $143.04 | $204.12 | $234.67 | $265.20 |
| Clinical Nurse Consultant | $169.16 | $241.52 | $277.69 | $313.86 |
| Nurse Practitioner | $176.85 | $252.51 | $290.33 | $328.16 |
Skill Development and Other Supports
| Support | National hourly cap | Support item |
|---|---|---|
| Skill Development and Training (public transport training etc.) | $70.23 | 15_037_0117_1_3 |
| Assistance with Decision Making, Daily Planning and Budgeting | $70.23 | 15_035_0106_1_3 |
| Training For Carers / Parents | $80.06 | 15_038_0117_1_3 |
| Community Engagement Assistance | $51.20 | 15_045_0128_1_3 |
| Assistive Technology Mentoring | $105.43 | 15_300_0103_1_3 |
| Audiologist Hearing Services | $193.99 | 15_501_0119_1_3 |
| Audiometrist Hearing Services | $166.83 | 15_503_0134_1_3 |
Remote and Very Remote areas attract loadings (up to approximately 40-50% higher). Furthermore, provider travel for therapy supports is charged at 50% of the hourly cap, not the full rate.
How Much Improved Daily Living NDIS Funding Might You Get?
Improved Daily Living budgets vary enormously based on your assessed needs, plan goals and existing impairments. Typical ranges include:
- Lower complexity: $5,000 – $15,000 per year (occasional therapy + some skill development)
- Moderate complexity: $15,000 – $25,000 per year (regular allied health + functional training)
- High complexity: $25,000 – $40,000+ per year (multiple therapists + nursing + intensive assessment)
These ranges aren’t guarantees — your NDIS planner assesses what’s reasonable and necessary based on evidence from your allied health team, GP and support coordinator. So however much funding you receive, it’s almost always tied to specific goals in your NDIS plan.
Example allocations
Here are some indicative allocations at the moderate-complexity end, using the 2025-26 price caps:
- Weekly OT (1 hour × 48 weeks × $193.99) = $9,311
- Fortnightly psychology (1 hour × 26 sessions × $232.99) = $6,058
- Monthly physiotherapy (1 hour × 12 × $183.99) = $2,208
- Skill-development training (2 hours × 20 sessions × $70.23) = $2,809
- Total indicative: $20,386 per year
How to Use Your Improved Daily Living NDIS Budget Well
1. Start with goals, not services
Because NDIS funding follows goals, your Improved Daily Living budget isn’t “a bucket of therapy money” — it’s funding tied to specific outcomes. So before booking your first OT appointment, get clear on your goals. Do you want to live independently? Manage public transport? Build social connections? Each goal points to different supports.
2. Choose professionals whose rates match your goals
If your goal is physical mobility, a physiotherapist ($183.99/hr) may be more efficient than an OT ($193.99/hr). For communication goals, speech pathologists at $193.99/hr are appropriate. Meanwhile, if emotional or psychosocial skills are primary, psychology ($232.99/hr) or counselling ($156.16/hr) may suit better. Additionally, specialist support coordinators can help you compare options (read our psychosocial supports guide for related detail).
3. Think about frequency vs intensity
A weekly 1-hour OT appointment is often more effective than a monthly 4-hour block. Similarly, therapy progress usually comes from consistent short doses. Therefore, splitting your budget across frequent sessions generally produces better outcomes than infrequent intensive ones.
4. Include therapy assistants where appropriate
If your therapist thinks a therapy assistant can deliver some of your program, this lowers hourly cost significantly. A Level 2 therapy assistant at $86.79/hr can deliver exercise programs, skill practice or behaviour-support follow-up at roughly 44% of the OT rate. Consequently, you can multiply your effective hours.
5. Budget for assessments and reports
NDIA-requested reports, plan reviews, and functional capacity assessments are billable. Therefore, keep some of your Improved Daily Living NDIS budget for these — they typically cost $1,000 – $3,000 per report depending on complexity.
6. Group sessions where possible
For social skills, community engagement, or some therapeutic goals, group-based delivery is permitted. Group sessions split the cost across participants — up to half the 1-on-1 rate. For example, community engagement assistance has a much lower cap ($51.20/hr) partly because it’s often group-delivered.
7. Track unused funding
NDIS plans are use-it-or-lose-it (within reason). So any unused Improved Daily Living budget at the end of your plan period usually doesn’t carry forward. Additionally, unused funds can trigger a reduced budget at your next plan review — the NDIA may decide you didn’t need that level of funding. Therefore, keep your supports active.
Improved Daily Living NDIS vs Other Capacity Building Categories
Because Capacity Building has several sub-categories, people sometimes mix them up. Here’s how Improved Daily Living compares to the others:
| Capacity Building category | What it funds | Example use |
|---|---|---|
| Improved Daily Living (#15) | Therapy, skill training, nursing, AT mentoring | OT to build cooking skills; psychology to manage anxiety |
| Support Coordination (#7) | Coordinator to manage your plan and connect you with supports | Help finding an SDA provider or navigating plan reviews |
| Improved Living Arrangements (#8) | Support to find and keep stable housing | Tenancy assistance, housing applications |
| Increased Social & Community Participation (#9) | Building skills for social and community engagement | Peer mentoring, social skills programs |
| Finding and Keeping a Job (#10) | Employment-related assessment, training and support | Workplace modifications, job skills training |
| Improved Relationships (#11) | Behaviour support, social skills | Behaviour support practitioner for autism |
| Improved Health & Wellbeing (#12) | Physical activity, dietetics for wellbeing | Exercise programs tied to wellbeing goals |
| Improved Learning (#13) | Transition through school and further education | Post-school transition planning |
| Improved Life Choices (#14) | Plan management — financial administration | Paying your NDIS invoices, managing funding |
So in short: if your goal involves therapy, skill development, or disability-related health, Improved Daily Living (#15) is usually the right budget. For a broader overview, read our NDIS services explained guide.
Improved Daily Living vs Core Supports — Key Differences
This is one of the most common points of confusion. Since both categories can cover similar-sounding supports, here’s how to tell them apart:
| Feature | Core Supports | Improved Daily Living |
|---|---|---|
| Budget type | Core | Capacity Building |
| Purpose | Day-to-day help | Building long-term skills |
| Typical supports | Support workers, community access, household tasks | Therapists, trainers, nurses, AT mentors |
| Flexibility between categories | Most flexible — can use between Core items | Less flexible — must be used on capacity building |
| Example | Support worker helps you cook dinner ($70.23/hr) | OT teaches you to cook independently ($193.99/hr) |
Notice the pattern — Core pays for someone to do it with you, Improved Daily Living pays for someone to teach you or build your capacity. Read our NDIS support worker pay rates guide for more on Core Support costs.
Who Can Deliver Improved Daily Living NDIS Supports?
Only qualified professionals can claim against Improved Daily Living line items. Crucially, each profession needs current registration with the relevant body. Here’s the full list of accepted professions:
- Occupational Therapist — AHPRA registration
- Physiotherapist — AHPRA registration
- Psychologist — AHPRA registration (includes paid provisionally-registered psychologists under supervision)
- Podiatrist — AHPRA registration
- Speech Pathologist — Certified Practising Speech Pathologist (Speech Pathology Australia)
- Dietitian — Accredited Practising Dietitian (Dietitians Australia)
- Exercise Physiologist — Accredited member (Exercise and Sports Science Australia)
- Audiologist — Audiology Australia or Australian College of Audiology
- Audiometrist — Hearing Aid Audiometrist Society of Australia or equivalent
- Orthoptist — Australian Orthoptic Board registration
- Social Worker — Australian Association of Social Workers member
- Developmental Educator — Developmental Educators Australia Inc. member
- Art Therapist — ANZACATA Professional Member
- Music Therapist — Active Registered Music Therapist (Australian Music Therapy Association)
- Counsellor — Australian Counselling Association or PACFA-accredited
- Rehabilitation Counsellor — Australian Society of Rehabilitation Counsellors Inc. member
- Nurses — various registered nurse levels under the Nurses Award 2020
- Other Professional — approved by NDIS Commission quality auditor under the Therapeutic Supports Registration Group
Additionally, therapy assistants can deliver portions of your therapy under the supervision of one of these professionals, at a lower hourly rate.
How to Get Improved Daily Living NDIS Funding in Your Plan
Step 1: Identify the skill or capacity goal
First, work out what you want to develop. This might be:
- A practical skill (cooking, using public transport, budgeting)
- A physical capacity (strength, mobility, balance)
- A communication or social skill
- Emotional regulation or psychosocial coping strategies
- Functional capacity for work or education
Step 2: Get evidence from an allied health professional
Next, an initial assessment report from an OT, physiotherapist, psychologist or other allied health professional provides the evidence base. Typically, these reports describe your current function, the barriers you face, and what supports could help.
Step 3: Bring evidence to your plan meeting
Then, at your planning or plan review meeting with your NDIS planner or LAC, share:
- Your goals (specific and measurable where possible)
- Allied health evidence supporting those goals
- What type of supports you think will help
- How many hours/sessions you anticipate needing
Step 4: Choose providers after approval
Once your plan includes Improved Daily Living funding, you choose the providers. In fact, you can work with multiple therapists simultaneously (for example, OT + physiotherapy + psychology). In addition, plan-managed and self-managed participants have full choice; agency-managed participants must use registered providers.
Step 5: Review progress and adjust
Finally, review your progress regularly. For example, every 3-6 months, check whether your supports are building capacity toward your goals. Because your next plan will weigh what you actually used and what you achieved, keep detailed notes.
Improved Daily Living NDIS for Sydney Participants
Notably, NDIS price caps are National — Sydney metro participants access the same rates as anywhere else in the country. However, a few Sydney-specific considerations apply:
- Provider availability — Sydney has strong allied health capacity, especially in Western Sydney LGAs (Fairfield, Liverpool, Cumberland). Finding multilingual OTs, speech pathologists and psychologists is more feasible here than in smaller cities.
- Telehealth — if you can’t find local availability, telehealth therapy is billable against the same line items at the same rates.
- Travel charges — therapists can claim up to 30 minutes of provider travel time per shift in Sydney metro, charged at 50% of their hourly rate.
- CALD-specific supports — for culturally and linguistically diverse participants in South-Western Sydney, some providers offer language-matched allied health. Read more in our Western Sydney NDIS provider guide.
Common Questions About Improved Daily Living NDIS
Is Improved Daily Living funded separately from Core Supports?
Yes. Improved Daily Living is part of your Capacity Building budget, which is separate from Core Supports. Additionally, Capacity Building funds are less flexible — you can’t generally use Improved Daily Living funding to pay for a support worker, for example, because that’s a Core Supports activity.
Can I use Improved Daily Living funding for gym memberships?
Not directly. However, an exercise physiologist’s time designing and delivering a tailored exercise program is billable at $166.99/hr. Also, the NDIS Improved Health and Wellbeing category (#12) sometimes covers physical wellbeing activities.
How much does 1 hour of OT typically cost under Improved Daily Living?
Currently, the 2025-26 NDIS price cap for an Occupational Therapist is $193.99 per hour nationally (higher in Remote / Very Remote areas). Therefore, a weekly 1-hour OT session works out to approximately $9,311 per year at cap.
Did Art and Music therapy rates change in 2025?
Yes. From the October 2025 PAPL update (version 1.1), Art Therapist and Music Therapist price caps reduced from $193.99 to $156.16 per hour. Because of this, some providers had to update their service agreements mid-year.
Can my GP claim against Improved Daily Living NDIS funding?
No. General medical care (including GP visits) is covered by Medicare. Improved Daily Living funds therapies and supports that address disability-related needs beyond general health care. However, disability-related nursing supports delivered by enrolled nurses, registered nurses or nurse practitioners are billable under Improved Daily Living.
Can I use Improved Daily Living for a therapy group class?
Yes, subject to group-based support rules in the NDIS PAPL. Typically, group therapy is delivered at a lower per-participant rate than 1:1 therapy. Therefore, groups often stretch your Improved Daily Living budget further — especially for social skills, community engagement, or exercise programs.
Does Improved Daily Living NDIS include support coordination?
No. Support coordination sits in a separate Capacity Building category (#7: Support Coordination and Psychosocial Recovery Coaches). However, some support coordinators work closely with your allied health team to align your Improved Daily Living supports with your overall plan goals.
What happens if I don’t use my Improved Daily Living budget?
Unused Capacity Building funds generally don’t roll over to the next plan period. Moreover, a pattern of unused funds may lead the NDIA to reduce the allocation at your next plan review — the logic being that if you didn’t need the funding, it wasn’t reasonable and necessary. Consequently, it’s worth actively using your approved supports.
Is Improved Daily Living NDIS only for adults?
No. Improved Daily Living also funds Early Childhood Intervention (for children under 9) through the same allied health professions, but in early childhood education and family settings. Additionally, therapy assistants can deliver aspects of children’s programs under therapist supervision.
Disclaimer
This article provides a general guide only and shouldn’t replace legal, financial or medical advice. NDIS pricing arrangements and funding categories are set by the National Disability Insurance Agency and can change — always verify current rates against the official NDIS Pricing Arrangements and Price Limits 2025-26. The figures here are current at the time of writing (NDIS PAPL 2025-26 v1.1 published 14 October 2025, valid from 24 November 2025). Individual Improved Daily Living budgets vary based on assessed needs, plan goals and NDIA reasonable-and-necessary decisions. For advice tailored to your situation, speak with your NDIS planner, support coordinator, or a qualified allied health professional with NDIS experience.
Next Steps — Talk to a Local NDIS Provider
Understanding your Improved Daily Living NDIS funding is the first step — using it well is the real goal. At OneJesus Care, we’re a 100% non-profit NDIS provider operating across South-Western Sydney.
Because we offer SIL, SDA, ILO, respite, home care, community participation and more, we can also help you understand how your Improved Daily Living budget fits alongside your other supports. Moreover, we work closely with local allied health teams so your therapies and support work complement each other.
- Transparent service agreements — no hidden fees
- Invoices referencing NDIS PAPL line items
- Multilingual team reflecting Western Sydney’s diverse communities
- Full range of NDIS services under one non-profit roof
Call us on 1800 04 CARE (1800 04 2273) for a free, no-obligation chat, or contact us online. Alternatively, for more on specific NDIS categories, read our NDIS services explained guide or the Western Sydney provider guide.
