Using Your NDIS “Improved Daily Living” Budget Correctly

The Improved Daily Living budget is part of the Capacity Building funding in an NDIS plan, designed to help participants access essential Therapy Support Items. This budget is designed to help participants build skills, increase independence, and improve their functional capacity. While the support items may vary slightly depending on the participant’s age, the rules and NDIS Eligibility requirements governing the use of this funding apply equally to all participants. 

This article explains: 

  • When to use specific therapy item codes 
  • When “other therapy” codes can be used 
  • Minimum provider requirements 
  • What is not covered under this category 

All references are based on the current NDIS Pricing Arrangements and Price Limits and the Support Catalogue, available at ndis.gov.au

1. Using the Correct Therapy Support Items within the Improved Daily Living Capacity Building Budget 

Under Capacity Building – Improved Daily Living, the NDIS provides specific support items for recognised allied health professions. This applies to both NDIS Registered and Non-Registered providers. 

In line with the General Claiming Rules, providers must make claims against the support item that most accurately reflects the support provided. This means that where a line item exists for a specific type of professional, supports of that type must be claimed against that item. 

Key principle: If you are delivering speech pathology, you must use the Speech Pathology support item. If you are delivering occupational therapy, you must use the Occupational Therapy support item. Using an “Other Professional” code when a specific code exists is not compliant

A full list of specific therapy support item codes is available in the NDIS Pricing Arrangements and Price Limits 2025–26 (V1.1)

  • For participants over 9 years of age, refer to page 95
  • For participants under 9 years of age, refer to page 92

  

2. When Can “Other Professional” Support item be used whilst ensuring the service meets the NDIS Eligibilty requirements

“Other Professional” or “Other Therapy” support items may only be used when: 

  1. The profession is not specifically listed in the Support Catalogue under Improved Daily Living; 
  1. The service meets NDIS eligibility requirements. This includes situations where the provider is not one of the professionals listed above but is considered appropriate to deliver therapeutic supports in line with the NDIS Quality and Safeguarding Commission’s requirements for the Therapeutic Supports Registration Group; and 
  1. The service is directly related to the participant’s disability and plan goals. 

If the profession already has a defined support item, that specific item must be used. 

  

3.Minimum Requirements for Providers using the Improved Daily Living Budget 

To claim under Improved Daily Living therapy items, providers must meet the professional standards set out in NDIS guidance. This applies regardless of whether the provider is NDIS registered

At a minimum: 

  • The provider must hold an Australian equivalent Bachelor degree or higher in the relevant field. 
  • The provider must be a current practicing member (not a student member) of the appropriate professional association or registration body for that profession. 
  • The support must relate directly to the participant’s NDIS goals
  • The support must meet the NDIS “reasonable and necessary” criteria. 
  • The service must not fall under the list of supports that are not NDIS funded. 

If these requirements are not met, the support cannot be claimed under this category. 

Important note: If the service being delivered is ongoing Behaviour Support, it cannot be claimed under Improved Daily Living. Ongoing Behaviour Support is funded under Capacity Building – Improved Relationships and has separate support items and additional practitioner requirements. Those rules are not covered in this article. 

  

4. Best Practices for Invoicing when using Therapy Support Item Numbers

To ensure compliance and smooth processing, we recommend that every invoice for therapy supports include the practicing professional’s registration details. 

Invoices should clearly state: 

  • The type of therapy delivered 
  • The practitioner’s full name 
  • The relevant professional association 
  • The practicing membership or registration number 

For example: If speech pathology is being delivered, the invoice should clearly identify the service as Speech Pathology and include the practitioner’s Speech Pathology Australia membership number

The NDIA conducts audits and may request copies of invoices from plan managers. Including professional registration details on each invoice: 

  • Helps demonstrate that the provider holds the appropriate qualifications and current practicing membership. 
  • Reduces delays during audit reviews. 

Clear, compliant invoicing protects participants, providers, and plan managers.