NDIS Service Agreement: What It Is and How to Write One
This guide explains what an NDIS service agreement is, who needs one, what it must include, and how to write one that is clear, fair and professional. Whether you are a registered or unregistered provider, this NDIS service agreement guide will help you get it right.
What is an NDIS Service Agreement?
An NDIS service agreement is a written contract between a support worker or provider and an NDIS participant. It sets out the supports that will be delivered, the rates that will be charged, and the terms and conditions of the arrangement – including how cancellations, disputes and payment will be handled.
A good NDIS service agreement gives both parties clarity and confidence. The participant knows exactly what they are signing up for, and the provider has a written record of what was agreed if any disputes arise.
Key point: An NDIS service agreement is not just a formality. It is a working document that protects your right to be paid, including in the case of late cancellations or no-shows.
Do You Need an NDIS Service Agreement?
Whether you are required to have an NDIS service agreement depends on how your participant’s plan is managed.
Registered providers are required by the NDIS Practice Standards to have a written service agreement in place before delivering supports to agency-managed participants. This is a compliance requirement and will be checked during audits.
Unregistered providers working with self-managed or plan-managed participants are not legally required to have a written service agreement, but it is strongly recommended. A signed NDIS service agreement protects you if payment is disputed, a participant claims a service was not agreed to, or a cancellation becomes a point of conflict.
In short – whether or not it is required, having a signed NDIS service agreement in place before you start delivering supports is always the right thing to do.
What Must Be Included in an NDIS Service Agreement?
A complete NDIS service agreement should include the following sections:
Let’s look at the most important sections in more detail.
Services and Rates
The services and rates section is the core of your NDIS service agreement. It should list every support you will deliver, along with the corresponding NDIS support item code, the rate you will charge and the unit (hourly, per session etc).
You must not charge more than the maximum rate set in the current NDIS Pricing Arrangements and Price Limits. Rates are updated periodically so always check the current price guide before completing this section of your NDIS service agreement.
If the participant is plan-managed or agency-managed, the plan manager or NDIA will cross-check your invoice against the rates listed in your service agreement. Inconsistencies can cause delays or rejections.
Cancellation Policy
Your cancellation policy is one of the most important parts of your NDIS service agreement, and one of the most commonly misunderstood. The NDIS allows providers to charge a cancellation fee in certain circumstances – but only if it is disclosed in your service agreement before services begin.
Your cancellation policy should clearly state:
- How much notice the participant must give to cancel without a fee (typically 2 business days for most supports)
- What happens if they cancel with less notice or do not show up
- That any cancellation fee will be charged in accordance with the NDIS Pricing Arrangements in force at the time
Important: You cannot charge a cancellation fee unless your cancellation policy is clearly set out in your NDIS service agreement and the participant has signed it. Without a signed agreement, you have no legal basis to charge for a missed appointment.
Payment Terms
Your NDIS service agreement should specify when you will issue invoices and when payment is due. Common practice is to invoice weekly or fortnightly after supports are delivered, with payment due within 7-14 days.
Include your bank details in the payment terms section so the participant or plan manager has everything they need to pay you promptly. At a minimum include your bank account name, BSB and account number.
Responsibilities of Both Parties
A good NDIS service agreement sets out what both the provider and participant are responsible for. This section helps prevent misunderstandings and demonstrates that the arrangement is professional and transparent.
As the provider, you should commit to:
- Delivering services with due care and skill
- Acting in accordance with the NDIS Code of Conduct
- Providing services consistent with the participant’s NDIS plan
- Maintaining appropriate records of services delivered
- Communicating openly and respectfully with the participant
The participant should commit to:
- Providing accurate and relevant information to support service delivery
- Treating the provider with respect
- Notifying the provider of any changes to their NDIS plan or circumstances
- Paying invoices in accordance with the agreement
Dispute Resolution and Ending the Agreement
Your NDIS service agreement should include a simple dispute resolution clause. This typically states that both parties will attempt to resolve any disagreement through open communication first, before escalating to an advocate, plan manager or the NDIS Quality and Safeguards Commission.
The agreement should also explain how either party can end the arrangement. Either party should be able to exit by giving written notice. Ending the agreement does not cancel payment obligations for supports already delivered, and services booked before the end date remain subject to the cancellation policy.
Does the Participant Need to Sign the Agreement?
Yes. An NDIS service agreement should be signed and dated by both the provider and the participant (or their nominee or guardian if applicable) before supports begin. An unsigned agreement offers much weaker protection if a dispute arises.
Keep a copy for your own records and provide a copy to the participant. If you are a registered provider, you are required to maintain records of service agreements as part of your compliance obligations.
Can You Change an NDIS Service Agreement?
Yes. An NDIS service agreement can be varied by mutual agreement between both parties. Any changes to services, rates or terms should be confirmed in writing – either by updating the agreement and having both parties sign again, or by exchanging a written confirmation of the change.
If NDIS pricing is updated and you need to adjust your rates, you will need to update your service agreement before charging the new rate.
Disclaimer: This post is general information only and does not constitute legal advice. NDIS requirements may vary depending on your registration status, participant plan type and circumstances. Always refer to the current NDIS Practice Standards, Pricing Arrangements and Price Limits, and seek independent advice if you are unsure about your obligations.
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