NDIS Funding vs Aged Care Funding
Published at 30-10-2025 14:46:54
When it comes to government support for Australians with care needs, two major systems often come up: the National Disability Insurance Scheme (NDIS) and the Aged Care system. Both aim to help people live more independently and improve their quality of life, but they are designed for different groups, have different eligibility rules, and fund supports in different ways.
Let’s break down the key differences between the two:
Purpose and Target Group
NDIS Funding
The NDIS supports people with permanent and significant disabilities who are under 65 years old. It’s goal is to help participants build skills, increase independence, and participate more fully in the community.
Aged Care Funding
The aged care system provides support for older Australians, usually aged 65 and over (or 50+ for Aboriginal and Torres Strait Islander people). It’s focus is on assisting with daily living, health and safety as people age.
Eligibility
NDIS
- Must be under 65 years old at the time of applying
- Must be an Australian citizen, permanent resident, or hold a Protected Special Category visa
- Must have a permanent and significant disability that affects daily functioning
Aged Care
- Usually 65 years or older
- Must undergo an Aged Care Assessment (ACAT) to determine the level of support needed
- Support can be provided in-home, through community services, or in residential aged care
How Funding Works
NDIS
The NDIS gives participants an individualised funding plan tailored to their personal goals. Participants can choose their own providers and manage their plan in different ways (self-managed, plan-managed, or NDIA-managed).
Funding is divided into categories like:
- Core Supports (everyday assistance)
- Capacity Building (skills and independence)
- Capital Supports (equipment and home modifications)
Aged Care:
Funding in aged care typically goes directly to approved aged care providers rather than individuals. People contribute to the cost of care based on income and assets, with the government subsidising the rest.
Funding can come through:
- Commonwealth Home Support Programme (CHSP) (for entry-level support at home)
- Home Care Packages (HCP) (for higher-level ongoing home support)
- Residential Aged Care (for those needing 24/7 support)
Choice and Control
NDIS
One of the biggest strengths of the NDIS is the level of choice and control participants have. They can select their own providers, negotiate rates, and decide how and when to use their supports (within their plan/goals of course).
Aged Care
While aged care recipients do have some flexibility, the system is generally provider-led. Funding goes to the provider, and choices are often limited to approved services within the chosen program.
Transitioning Between Systems
People receiving NDIS supports before 65 can continue to receive them even after turning 65 if they choose to stay in the NDIS. However, those who apply after 65 are directed to the Aged Care system instead.
The transition point is important: once you move from NDIS to Aged Care, you cannot move back. That’s why planning ahead before turning 65 is essential.
Final Thoughts
Both the NDIS and Aged Care systems play a vital role in supporting Australians, but they do so with different philosophies and funding structures. The NDIS focuses on empowering people with disabilities to live independently and pursue their goals, while the Aged Care system ensures older Australians receive the care and safety they need as they age.
Understanding these differences can help individuals and families make informed decisions about which system best fits their circumstances.