Do you need an NDIS service agreement, and what goes in it?

Do you have to have a service agreement?

No, not in most cases. The NDIA says you aren't required to create a written service agreement, recommends one whenever a participant starts with a new provider, and makes it mandatory only for specialist disability accommodation (SDA) supports (NDIS: what is a service agreement). Registered providers delivering higher-risk supports are also audited on it: the NDIS Practice Standards core module expects an agreement with each participant and, where it's in writing, a copy signed by both sides.

In my experience plan managers haven't asked to see it in normal dealings. It matters because some of what you charge only holds up if the participant agreed to it first.

Which charges depend on what you agreed first?

Five kinds of claim depend on what the participant agreed before the support was delivered. These come from the NDIS pricing arrangements for 2025-26, which stay current until the NDIA publishes the 2026-27 guidance:

Cancellation fees surprise participants and families more than any other term, so talk them through before anyone signs. Short notice is less than 7 days for most support work and less than 2 clear business days for household tasks and some other supports. The most you can claim is 100% of the agreed fee, and you can waive it or accept shorter notice than your policy. The cancellations guide has the rules for each support.

What does the ATO need for GST-free supports?

If you're registered for GST, a support is only GST-free when all four of the ATO's conditions are met, and one of them is a written agreement. If you're not registered for GST, this section doesn't apply to you. The conditions (ATO: National Disability Insurance Scheme):

1. The participant's NDIS plan is in effect.
2. The support is one the plan lists as reasonable and necessary.
3. There is a written agreement between you and the participant, or someone acting for them.
4. The support is a type the ATO's NDIS rules cover. Not every support is: the ATO's own example is exercise physiology at a clinic, which doesn't qualify. Check the ATO page for yours.

The written agreement has to name the participant and say that the support is one of the reasonable and necessary supports in their plan. It doesn't have to be one document. Letters, emails and your invoices can combine to do the job, and electronic copies count. Hours or items beyond what the plan specifies aren't GST-free.

If you charge GST-free, add a line to your agreement such as: "The supports in this agreement are reasonable and necessary supports specified in the participant's NDIS plan." The invoice guide covers how GST shows on the invoice. The GST guide covers when GST does apply, such as subcontracted work.

What should go in a service agreement?

A service agreement covers what you supply, what it costs, who pays, how problems are handled and how it ends, in language the participant understands. Nine clauses cover it:

For the Travel clause, the travel claims guide has the caps and rates.

Example wording to adapt, written from you to the participant:

• Rates: "The rate for each support is the NDIS price limit for that support in the current NDIS Pricing Schedule, and changes when the price limits change."
• Cancellations: "If you cancel a support with less than 7 days' notice, or you're not there when I arrive, I may charge up to 100% of the agreed fee unless I can fill that time with other paid work. I may waive the fee." For household tasks such as cleaning, use 2 clear business days.

Don't use the agreement to add conditions the NDIA's pricing arrangements don't allow, such as a cancellation fee above 100% of the agreed fee. The NDIA says providers shouldn't impose conditions like that through a service agreement.

How should you write the rates?

For plan-managed and NDIA-managed participants, each rate must be at or under the price limit for that code. You can write a fixed dollar rate, or set the rate as the price limit (or a percentage of it). Every code's limit is in the line item directory.

A rate set as the price limit moves when the limits change, so there's nothing to re-sign. Say so when you go through the agreement, because the participant is agreeing to that in advance. With a fixed rate you need to update it in writing with the participant before you charge more.

Who signs, and when do you make a new one?

The participant signs, or their nominee or guardian if someone else handles their NDIS matters. Give them a copy of the signed agreement and keep your own.

Make a new agreement with each new participant, and when an existing participant starts new supports with you. A new plan is a good time to review it. If you work somewhere remote, check that the travel terms suit the MMM area where you deliver the support. For the rest of the invoicing steps, see how to invoice a plan manager.