Financial compliance for NDIS providers

The National Disability Insurance Scheme (NDIS) is built on providing support that is necessary and beneficial for participants. To ensure participants receive safe, fair and ethical support, providers must operate in compliance with relevant Australian laws and NDIA legislation.​

While NDIS compliance covers many areas, we’ll be focusing on the aspects that matter most for accounting and day-to-day business operations. This includes invoicing, record keeping, getting paid, and tax compliance.​

Financial compliance is just a part of a broader framework that requires providers to follow NDIA rules and legislation. ​

The key obligations include:​

Following these is key to maintaining trust and accountability.​

The NDIS has clear rules around pricing to ensure participants receive value for money. Registered providers must follow the NDIS Pricing Arrangements and Price Limits, which sets the maximum prices you can charge for specific support.​

Note: these official limits do not apply if you provide support to participants who self-manage their NDIS plan. However, your rates should still be fair and in line with market rates.​

While you can negotiate prices with a participant, you must always:​

What if there isn’t a price limit?​

If you’re providing a specific kind of support that doesn’t have a price limit, you should discuss and agree on a price with the participant before providing that support.​

Keeping accurate and complete records is the foundation of NDIS compliance. The NDIA can request verification of your payment claims at any time through its Provider Payment Assurance Program, so it’s essential to have detailed documentation of services delivered. Failure to provide adequate proof can result in having to repay funds or even risk losing your registration.​

At a minimum, you’re required to keep details of:​

For easy verification of support delivered, you should keep several documents on file as official evidence.​

These include:​

To make admin easier, templates for many of these documents are available on the official NDIS website.​

While the documents above prove what support was delivered, ensuring your invoices include all the necessary details is crucial for financial compliance and getting paid promptly.​

Invoices must be for a single participant and clearly show:​

If the invoice is for specialist disability accommodation, it must also include the participant’s address (including postcode).​

The process for invoicing and receiving payment depends on how a participant’s NDIS plan is managed.​

The process is relatively straightforward. You invoice and receive payment from the participant directly. You must also provide a receipt so they can claim it against their plan.​

When a participant uses a plan manager, they act as a financial intermediary. You send the invoice to the plan manager, who then processes the claim and arranges payment.​

Where a participant’s funding is managed by the NDIA, you claim payment directly from the agency through the myplace provider portal. ​

Claiming via the portal
Payment requests must be submitted within 90 days of the support being provided. ​

Each claim needs to include the participant’s name and reference number, date(s) of support delivery, and the support item number and price.​

Payment timeframes
Valid claims are generally paid within 2-3 business days. However, if you’re not listed as one of the participant's regular providers, payment can take up to 10 days.​

You can track the status of your claims in the portal. ‘Pending payment’ means the claim is under review, while ‘Paid’ means it has been approved and processed.​

As part of compliance monitoring, some claims may be reviewed before payment. This is where thorough record-keeping becomes vital to avoid compliance issues such as having to repay unsupported claims or being referred to the NDIS Quality and Safeguards Commission.​

For more info on using the portal, view the myplace portal guide on the NDIS website.​

Beyond specific NDIS rules, there are also standard business tax obligations to manage.​

While most NDIS support services are GST-free, the rules can be complex. Read our detailed guide on GST compliance for NDIS providers for further information.​

Like any business, the income you receive from providing NDIS support is considered assessable income. This means it must be declared in your income tax return just like any other business earnings.​

The good news is that the records you keep for NDIS compliance are also an essential part of tax compliance. In addition, you’ll need to keep records of all your business expenses, bank statements, payroll and superannuation information and tax returns.​

As a general rule, the Australian Tax Office (ATO) requires records to be kept for at least five years, but some have to be kept for longer (e.g. superannuation which must be kept for at least ten). We recommend keeping digital copies for as long as possible so the information is easily available if you’re ever audited.​

Juggling compliance rules while delivering quality support to your clients can be challenging. This is where partnering with an accountant who understands the NDIS landscape can be a valuable resource to your business.​

They can:​

With the financials covered, you’re free to focus on delivering incredible support rather than wasting valuable hours on admin and keeping up with every legislative tax change.​

While NDIS provider compliance covers everything from ethics to service delivery, getting the financial side right is non-negotiable. Not only do accurate and compliant records protect you from risk, but they ensure you get paid on time.​

By putting strong systems in place and seeking specialist advice where needed, you can manage your compliance confidently and concentrate on delivering the support your participants rely on.​

If you’re looking for an accountant for your NDIS business, book a call with the team at Beany to discuss your requirements.​