Navigating GST as an NDIS provider

As an NDIS provider, your focus is on delivering essential support to participants. However, while you’re managing the needs of your clients, you also have to navigate the complexities of business administration. One of the most common challenges is understanding your obligations around Goods and Services Tax (GST).​

The rules can seem confusing, but getting them right is crucial for your compliance and cash flow. In this guide, we'll explain how GST applies to NDIS services, how it impacts your business, and what you need to know to operate with confidence.​

To ensure support remains accessible and affordable, many NDIS services are classified as GST-free under Australian tax law. This means you don’t add GST to your invoices for these services.​

However, for a service to qualify as GST-free, four conditions must be met:​

Your client’s plan must be current and approved by the National Disability Insurance Agency (NDIA).​

The service you provide must be specified in the participant’s NDIS plan as 'reasonable and necessary' support. Any support supplied beyond the amount or scope outlined in the plan is not GST-free.​

You must have a written agreement with the participant or their representative (like a plan manager or guardian). This doesn't have to be a single formal document - it can be a combination of letters, invoices, and electronic communications that show an obligation for you to supply the support.​

The service you provide must be listed in ‘A New Tax System (Goods and Services Tax) (GST-free Supply - National Disability Insurance Scheme Supports) Determination 2021’.​

Examples of GST-free support​

While it’s important to understand when a supply is GST-free, it’s equally important to recognise when GST does apply.​

GST generally applies when:​

Many NDIS providers offer a combination of GST-free and taxable goods or services, known as mixed supplies. This can make compliance tricky.​

Having a system that correctly handles both is crucial to avoid errors in invoicing and reporting. Here are a few tips for navigating mixed-supply invoicing:​

In Australia, you’re required to register for GST if your annual turnover from taxable supplies is $75,000 or more.​

Since GST-free income doesn’t count towards this threshold, you could earn $200,000 in total revenue but not be required to register (provided less than $75,000 comes from taxable goods or services).​

So the real question becomes, should you register anyway?​

If you want to claim back GST on eligible business expenses, then you’ll need to register. You can’t claim GST on business purchases unless you’re officially registered for GST with the Australian Tax Office.​

Even if all or most of your services are GST-free, you’re still likely paying GST on expenses like office supplies, equipment, vehicle expenses, contractor or sub-contractor fees.​

If you’re registered for GST, you can claim these amounts back as GST credits on your Business Activity Statement (BAS).​

For some NDIS providers, voluntary GST registration can be financially worthwhile even if your taxable turnover is below the $75,000 threshold.​

Even with the best intentions, it’s easy to make mistakes when it comes to GST. We've put together a few common pitfalls and how to stay on the right side of compliance.​

If you incorrectly charge GST on a GST-free service, you’re still required to remit that amount to the ATO. To fix this, you must issue a corrected, GST-free invoice and refund the GST portion to the participant or their plan manager.​

Always check that the four conditions for a GST-free supply are met for each service and participant. Even minor changes in circumstances could alter the GST status.​

Providers who aren’t required to register for GST often miss out on GST credits. It's worth reviewing whether voluntary registration could benefit your business.​

On the flip side, incorrect GST claims are common. To stay compliant, always keep detailed receipts and ensure claims relate to legitimate business expenses.​

While our other article on NDIS compliance provides a much more detailed overview of financial compliance beyond GST, here are a few short tips to get you started.​

Navigating GST in the NDIS space isn’t just about ticking boxes. It’s also about keeping your finances in order so you can focus on delivering essential services to your clients.​

By understanding when services are GST-free, managing mixed supplies, and maintaining accurate records, you’re well on your way to staying compliant and minimising risks.​

The rules can be complex, but you don't have to manage them alone. If you need assistance with your NDIS accounting and navigating GST requirements, we’re here to help. Book a call or get in touch for a free consultation.​