Document 4 FOI 25/26-1985 OFFICIAL

The contents of this document are OFFICIAL.

Apply default distribution of funds in a budget update

Guidance in this document is not approved for use unless you view it in PACE.

This article provides guidance for a planner delegate, planner (non-partnered area), review officer, compensation delegate and external review officer to:

understand default distribution type
understand the limitations of funding periods in a budget update
apply default distribution of funds in a budget update.

Note: this article is for default distribution of funds in a budget update only. If you need to apply default distribution of funds in a plan approval case, use article Apply default distribution of funds in a plan approval case.

You can’t use this article for custom distribution of funds in any case.

Use article Apply custom distribution of funds in a budget update if you want to apply custom distribution of funds in a budget update or to add a new support of:

YPIRAC – Cross Billing
Supported Independent Living (SIL) with irregular and regular support
yearly enteral nutrition support
continence support that needs to be front loaded
behaviour support plan
employment support
therapy supports with assessments or reports
Support Coordination and Psychosocial Recovery Coaches that need to be front loaded.

Note: Plan Management – Set Up Costs are no longer included in the participant’s plan. You must use default distribution of funds when adding the Choice and Control support category.

Recent updates

22 September 2025

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Removed Individualised Living Options (ILO) from the list of support categories with a recommended funding period length of 1 month.

Before you start

You have:

read and understood section What are funding periods? in Our Guideline – Creating your plan (external)
read and understood article Understand funding periods
updated the Funded Supports and Fund Management tabs and want to set one or more funding periods to a default distribution type.

Understand default distribution type

Using the default distribution type will evenly distribute funds across all funding periods for support categories with a regular or recurring instalment type. You need to determine if the funding period length should be changed based on the support category, overspending risks, participant’s safety and any participant preferences. Funding period lengths can be 1, 3, 6 or 12 months with 3-month funding periods used for most participants. To learn more, go to article Understand funding periods.

Example

You’ve decided to vary a participant’s plan and include a new funded support, Improved Daily Living Skills. You’ve decided the total funded amount will be $90,000. The plan has a duration of 5 years and on the date of the plan variation decision it has 59 months and 13 days remaining. This means funding components in the participant’s plan are still in the first funding period. This funded support will be plan-managed.

In the Funding Periods tab, this will appear as a funding component called Improved Daily Living Skills (Plan-managed).

You’ve assessed any risk and will apply 3-month funding periods to this funding component.

There will be 20 funding periods in this funding component. The start date of the current funding period will be adjusted based on the date the decision to vary the plan was made. The Total Funded Amount will be distributed evenly across all funding periods in the plan, except the current period. PACE will adjust the amount allocated to the current funding period based on how long is left in it.

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Understand the limitations of funding periods in a budget update

Before you apply default funding periods in a budget update, you’ll need to understand the following limitations.

In a budget update you can:

increase funding for current and future funding periods
decrease funding in future funding periods, however the total plan value can’t be decreased, meaning you’ll need to re-allocate the decreased funding to another support category
change future funding period length.

In a budget update you cannot:

increase funding for past funding periods
decrease funding for past and current funding periods
change past or current funding period lengths.

Apply default distribution of funds in a budget update

From a Plan Change or Participant Budget Update case:

Select the Funding Periods tab.
At the funding component you’re changing, select the arrow next to Funding period details to review the current:
- Funding Period
- Length
- Funding Period Amount. Note: Direct Commissioning or In-Kind support categories won’t display on the Funding Periods tab as they don’t need funding periods.
At the Action column, select Edit for the funding component you’re changing. This will open the Review Funding Periods window. If you’re:

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applying a funding period to a new funding component, go to section Apply funding periods to a new funding component in this article
updating funding periods for an existing funding component, go to section Update funding periods for an existing funding component in this article.

Note: you can’t edit Recurring Transport.

Apply funding periods to a new funding component

When a new funding component is added through a plan variation (s47A), the funding periods will start from the date the decision to vary the plan was made. As a result, the first funding period may be shorter to align with the variation date. The first funding period will also have a pro-rata amount.

In the Review Funding Periods window, go to Funding Period Length (months), select a funding period length. You will base this on any risks or considerations in section How long can a funding period be? in article Understand funding periods. Note:
- the Funding Period Length (months) must be the same for all support categories in the same funding component. This means that if the Funding Period Length (months) for one core flexible support category is changed, PACE will adjust the others to match
- the recommended funding period length for support categories of Supported Independent Living (SIL), Specialist Disability Accommodation (SDA), Choice and Control, and YPIRAC – Cross Billing is 1 Month. Delegates must use their own discretion to review the risks and assess the supports before selecting a funding period length
- If SIL includes irregular supports, go to article Apply custom distribution of funds in a budget update.
At Funding Distribution Type, select Default. Depending on the date of the decision to vary the plan, the current funding period will have a different Funding Period Amount.
If you have other support categories in the same funding component that need funding periods set to the Default distribution type, repeat from step 1. Otherwise go to step 4.

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Note: if you have other support categories in the same funding component that need to be set to Custom distribution type, go to article Apply custom distribution of funds in a budget update.

Select Submit.
On the Funding Periods tab, check the funding component Status is Updated. Note: if the Status is Pending Update, you need to check you’ve completed all the steps in this section.
If you:
- have other new funding components that need a Default distribution type, repeat from step 1
- need to update an existing funding period, go to section Update funding periods for an existing funding component
- have no other updates, go to Next steps.

Update funding periods for an existing funding component

If applicable, at Funding Period Length (months), select a new funding period length. This will be based on any risks or considerations in section How long can a funding period be? in article Understand funding periods. You’ll also need to consider any request to update the funding period length. Note:
- you won’t be able to change the Funding Period Length (months) for past or current funding periods. Any changes made to Funding Period Length (months) will start from the next funding period
- the Funding Period Length (months) must be the same for all support categories in the same funding component. If the Funding Period Length (months) for one core flexible support category is changed, PACE will adjust the others to match
- the recommended funding period length for support categories of Supported Independent Living (SIL), Specialist Disability Accommodation (SDA), Choice and Control, and YPIRAC – Cross Billing is 1 Month. Delegates must use their own discretion to review the risks and assess the supports before selecting a funding period length

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if SIL includes irregular supports, go to article Apply custom distribution of funds in a budget update.

At Funding Distribution Type, select Default. Depending on the date of the decision, the current funding period will have a different Funding Period Amount. If this was a custom funding period previously, this will change to be evenly distributed across all funding periods in the plan, except for the current funding period.
If you have other support categories in the same funding component that need funding periods set to the Default distribution type, repeat from step 1. Otherwise, go to step 4. Note: if you have other support categories in the same funding component that need to be set to Custom distribution type, go to article Apply custom distribution of funds in a budget update.
Select Submit.
On the Funding Periods tab, check the funding component Status is Updated. Note: if the Status is Pending Update, you need to check you’ve completed all the steps in this section.
If you have other funding components that you need to update with a Default distribution type, repeat from step 1. Otherwise, go to Next steps.

Next steps

You’ll need to apply a funding period justification to each new or updated funding component in the plan. This includes if you have added a new support category to the core flexible funding component or changed the distribution type of a support category. To do this, go to article Add funding period justifications.

Article labels

PACE user role names

No change.

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Topics

No change.

Case names

No change.

Ownership

No change.

Version control

Version	Amended by	Brief Description of Change	Status	Date
5.1	LFT270 JHN213	Class 1 update in line with Section 33 Operational policy – funding periods. Removed ILO from the list of support categories with a recommended funding period of 1 month. Tested in PACE SEP25QA environment.	DRAFT	2025-09-11
5.2	LFT270	Peer review No feedback to action	DRAFT	2025-09-15
6.0	RCR374	Class 1 approval	APPROVED	2025-09-16

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