The National Disability Insurance Scheme funds support for over 600,000 Australians, and the providers who deliver that support operate in a billing and compliance environment unlike any other sector. The NDIS Price Guide sets maximum support prices that change annually; the PACE portal is the system through which registered providers claim payments; and participants are funded through one of three management types — agency-managed, plan-managed, or self-managed — each of which affects how and from whom you invoice.
The Three Participant Management Types
Understanding the management type is the foundation of NDIS bookkeeping because it determines the billing process:
Agency-managed (NDIA-managed): The NDIA pays the provider directly. The provider makes a payment request through the PACE portal after delivering the support. The participant's plan is linked to the provider via a service booking, which reserves funds in the participant's plan for the provider's services. Payment arrives from Services Australia, typically within three business days.
Plan-managed: A registered Plan Manager (a third party) holds the participant's funds and processes invoices on the participant's behalf. The provider invoices the plan manager, not the NDIA. Payment terms and processes are set by the plan manager, not the NDIA. The bookkeeper must manage a separate debtor for each plan manager.
Self-managed: The participant manages their own funds. The provider invoices the participant (or their nominee) directly. The provider does not need to be NDIS-registered to work with self-managed participants, and price limits do not apply (though most providers charge within Guide limits by convention). Payment risk lies with the provider, as there is no NDIA backstop.
PACE Portal and Service Bookings
PACE (Provider Access to NDIS for Claiming and Enrolments) replaced the old myplace portal. Registered providers must:
- Create a service booking against the participant's plan before delivering services — this reserves the funds
- Submit payment requests (claims) through PACE after the service is delivered
- Reconcile the payment requests to the bank receipts
PACE claims can be bulk-submitted via CSV upload for high-volume providers. The file format is prescribed by the NDIA; any formatting error rejects the entire batch. Bookkeepers managing NDIS provider clients should have the current PACE bulk upload template saved and version-controlled.
Price Guide Compliance
The NDIS Pricing Arrangements and Price Limits (the current name of the Price Guide) sets hourly and unit rates for each support item code. Providers cannot charge above the price limit for agency-managed and plan-managed participants. Common categories:
- Assistance with Daily Life (01): personal care, domestic assistance — priced per hour with a standard rate, weekday evening rate, Saturday rate, Sunday rate, and public holiday rate
- Therapy Supports (15): occupational therapy, speech therapy, psychology — higher rates reflecting professional qualification requirements
- Support Coordination (07): coordinating the participant's support network
- Assistive Technology: one-off or periodic items; requires a quote and pre-approval above certain thresholds
Every support claim must reference the correct support item code (the NDIA's 8-digit support catalogue code). Claiming under the wrong code — even if the rate is identical — is non-compliance and can trigger audit.
GST Treatment of NDIS Services
Most NDIS support services are GST-free under Item 7.1 of Schedule 1 to the GST Act (supply of disability support under the NDIS). This means the provider does not charge GST and does not remit GST on that income, but also cannot claim ITCs directly related to those GST-free supplies. The GST-free treatment applies to both registered and unregistered providers.
However, not all costs a disability services provider incurs are directly related to GST-free supplies. Administrative costs, IT systems, accounting services, and vehicle running costs are "mixed purpose" costs shared across the business. These costs may be eligible for a partial ITC based on the proportion attributable to activities other than the GST-free supply. The calculation methodology should be agreed with the tax agent and documented.
Transport claims under the NDIS are sometimes a source of confusion. The NDIS has specific transport support items; if the provider is reimbursed for transport at the NDIS rate, that reimbursement follows the same GST-free treatment as other NDIS supports.
Service Agreements and Cancellation Fees
NDIS registered providers are required to have a service agreement with each participant. The service agreement sets out the supports to be delivered, the frequency, the price, and the cancellation policy.
The NDIS Price Guide allows providers to charge a cancellation fee (currently up to 90% of the support rate) where a participant cancels with short notice (less than two business days for most items). The cancellation claim is submitted through PACE with the appropriate support item code for short notice cancellations.
Cancellation fees should be tracked separately in the practice management or billing system. They are a legitimate revenue stream but are also a friction point with participants; excessive cancellation charging can affect the provider's relationship with participants and their plan managers.
Invoicing for Plan-Managed Participants
When invoicing a plan manager, the invoice must include:
- The participant's full name and NDIS number
- The date(s) of service
- The support item code and description
- The quantity, unit rate, and total amount
- The provider's ABN and registration number (if registered)
Plan managers have their own payment cycles — some pay within 2–3 business days; others take 10–14 days. Managing aged debtors across multiple plan managers, each with different payment terms, is one of the more demanding aspects of NDIS bookkeeping. A debtor aging report sorted by plan manager, rather than by participant, is more useful for chasing overdue invoices.
Payroll for Support Workers
Support workers in disability services are typically covered by the Social, Community, Home Care and Disability Services (SCHADS) Industry Award. The SCHADS Award is one of the most complex in Australia, with:
- Eight different classification levels with distinct pay rates
- Broken shift allowances when a split shift does not qualify as a single continuous shift
- Sleepover provisions with distinct overnight rates
- Saturday, Sunday, and public holiday penalty rates
- Minimum engagement periods for casual workers
Correct payroll under the SCHADS Award requires a payroll system that has been configured specifically for the Award — off-the-shelf STP-compliant payroll software usually covers SCHADS, but the setup must be verified, particularly for less common provisions like sleepovers and broken shifts.
NDIS Quality and Safeguards Commission Compliance
Registered providers must comply with the NDIS Practice Standards and must have an internal audit process. The Commission's financial requirements include maintaining adequate financial records to support claims and demonstrate ongoing financial viability. While the Commission is not a tax authority, its auditors will look at billing practices, service agreements, and worker ratios. Clean books are a prerequisite for a satisfactory audit outcome.