NDIS Transport Allowance Levels Explained | Levels 1, 2, 3

NDIS Transport Allowance Levels Explained

Transport is one of the more confusing parts of the NDIS. Funding sits in two different places, the rules change depending on whether you are driving yourself or being driven by a worker, and the dollar amounts shift each year with indexation. This is what the system actually looks like in 2026. 

The Three Levels of Transport Allowance 

If you cannot use public transport without help and you do not work, study, or volunteer, you generally fall under Level 1. The allowance increases for participants who use transport more often. 

  • Level 1 — around $1,784 per year. For participants not currently working, studying, or undertaking other day activities outside the home.
  • Level 2 — around $2,472 per year. For participants who undertake some employment, education, or community activities.
  • Level 3 — around $3,456 per year. For participants engaged in activities that maintain or improve their employment opportunities, often with at least 15 hours per week of out-of-home activity.

These figures are indexed annually. Check the latest NDIS Pricing Arrangements for current rates. 

What The Allowance Covers 

Transport Allowance is paid into your plan as a recurring amount. You decide how to use it:

  • Taxis and rideshare (Uber, Didi, taxi vouchers)
  • Public transport — bus, train, ferry
  • Petrol for a private car
  • Specialised disability transport services

The NDIS does not book or pay for individual rides. The allowance goes into your plan and you spend it as you choose, subject to record-keeping if you self-manage. 

Worker-Provided Transport 

When a support worker drives you to an appointment or activity, the transport works differently. The worker’s driving time can be funded as ‘activity-based transport’ under your Core Supports — separate from the Transport Allowance. 

This is funded at a lower hourly rate than direct support time, and is capped against your plan’s transport allocation. Most providers will be transparent about how this is billed in your Service Agreement. 

Capacity Building Travel Training 

Some plans include funding under Improved Daily Living for travel training — structured work to teach the participant to use public transport independently. This is not transport itself; it is the skill-building that reduces the need for paid transport over time. 

Travel training is one of the more strategic uses of NDIS funding. A participant who can confidently use a Go Card and read a bus timetable has more autonomy and less ongoing transport cost. 

Common Mistakes

  • Burning through the allowance early. If your plan is annual and you use half the allowance in the first three months, the rest of the year is harder. Pace your use, especially for non-essential outings.
  • Mixing up funding streams. Transport Allowance is not the same as activity-based transport. Using one when the other should apply leads to billing errors and faster funding burn.
  • Forgetting that the allowance does not cover the worker’s time. If a worker drives you in their car, the worker’s time costs your support funding; the trip costs your transport funding (or activity-based allocation). Two costs, two streams.

FAQs 

Q1. Does the NDIS pay for taxis directly? 

No. The NDIS pays Transport Allowance into your plan, and you use it for taxis (or other transport options) as you choose. 

Q2. Can my transport allowance roll over to next plan? 

No. Unused Transport Allowance does not roll over. If you have an annual plan and the allowance is unspent, that money is not added to next year’s funding. 

Q3. What if I need more transport than my allowance covers? 

You can request a higher level at plan review with evidence — for example, regular medical appointments, study, or work commitments that require more travel. 

Q4. Can my support worker drive me in their own car? 

Yes, where they are appropriately licensed and insured. We confirm both for our workers as part of their employment. 

Q5. Does NDIS pay for parking? 

Parking costs at appointments or destinations are not funded separately. The participant generally pays parking out of their own income, similar to entry costs at events.