What is an NDIS service agreement?

An NDIS service agreement is a written contract between an NDIS service provider and the participant. It sets out what support you'll deliver, how much it costs, and what both sides agree to do. When a participant agrees to use their NDIS funding for certain services, they are entering into a formal agreement with the provider.

Is an NDIS service agreement mandatory?

If you’re a registered NDIS provider delivering supports to an NDIA-managed participant, then a written service agreement is required under NDIS rules. For non-registered NDIS providers, the service agreement is optional, but is recommended. Why? Because it protects you and the participant. It outlines what’s expected, how problems will be resolved, and what happens if something changes.

For example, under Australian tax law, NDIS-funded supports are GST-free only if there is a written agreement in place identifying the participant and the supports as part of their NDIS plan. If a provider fails to have a written service agreement, they may have to charge GST on their services – which is a strong incentive to always document the arrangement in writing.

What should be included in an NDIS service agreement?

A good NDIS service agreement covers the key details of your working relationship. It should be clear, complete, and easy for the participant to understand. At a minimum, make sure you include the following:

• ‍Support details: List the types of NDIS services you’ll provide, how often, and where they’ll be delivered. Include the agreed hourly rate or total cost. For example, the type of support (e.g. occupational therapy sessions, daily in-home care), the frequency or schedule (e.g. 3 hours every Monday afternoon at the participant’s home), and the NDIS programs of support (group or one-on-one).‍
• Length of the agreement: State how long the service agreement will run, or the time period it covers. Some agreements are open-ended, while others might be time-limited, such as 3, 6, or 12 months.‍
• Cost of the supports: List the agreed price for the NDIS services. If there are any additional charges—such as for NDIS transport, NDIS travel, or short-notice cancellations—include those too.‍
• Responsibilities: Outline what both you and the participant are responsible for. This could include things like showing up on time, providing accurate invoices, or giving enough notice before cancelling a session. It should also cover any service-specific NDIS policies and procedures, such as what happens if an NDIS support worker is sick (e.g. will a replacement be sent?).‍
• Payment terms: Explain how and when you'll claim NDIS payment. This includes noting whether the participant’s funding is NDIA-managed, plan-managed, or self-managed, as this affects how the provider gets paid.‍
• Cancellations and changes: Detail your cancellation policy, including how much notice the participant needs to give to avoid a short-notice cancellation charge. According to the NDIA Pricing Arrangements, a provider can charge a cancellation fee if a participant gives less than 7 days’ notice for certain services.‍
• Feedback and complaints: Let the participant know how they can raise a concern and what your process is for resolving issues. If you have a complaints management system, mention that participants can submit their complaints through it.‍
• Signatures: Make space for the participant (or their nominee) and the provider to sign and date the agreement.

Who is responsible for writing and signing the agreement?

The provider creates the NDIS service agreement. Both the NDIS provider and the participant (or their representative) are responsible for agreeing to it. If you use a service agreement template, just make sure it’s personalised to your services and participants.

The participant should always have the chance to review it, ask questions, suggest changes, and only sign when they fully understand what they’re agreeing to. The participant or their family can even suggest their own version of the agreement if they like.

Once both sides are happy with the terms, the agreement should be signed. The participant—or their guardian, nominee, or legally appointed representative—signs on one side. On the provider’s side, this is usually the service manager, team leader, or CEO. Both should then keep a signed copy.

According to the NDIS Practice Standards, each participant should receive a signed copy of the written agreement. Finally, the NDIA isn’t involved in service agreements. They don’t sign them, and they don’t approve them. It’s a contract between the participant and you. That means you and your clients need to make it a fair and transparent process.

Can an NDIS service agreement be changed?

Yes. An NDIS service agreement can be changed if the participant’s needs change. Below are some scenarios when the service agreement may be changed:

• The participant needs a different support
• They want to adjust how often they receive services or switch from in-home to centre-based care. 

The NDIS participant (or their support coordinator) and the provider need to talk before making the changes. Small changes can be done through a written variation or addendum. Bigger changes might require a whole new agreement. 

Can an NDIS service agreement be ended?

Service agreements can end for many reasons:

• The participants' needs have changed
• Their disability has improved or declined
• They want to try a different support/treatment/therapy 
• They have reached their goal
• They do not feel the provider is a good fit for you

The service agreement should explain how to end the arrangement. Even if the NDIS participant is unhappy, NDIA encourages the participant to talk with their provider to resolve the issue first. But if they still want to leave, they can, and you must respect their right to do so. 

When the agreement ends, make sure all final services are invoiced, update the service booking (if needed), and return any of the participant’s belongings. If you’ve lent them any equipment or materials, request them back too. A final statement of services delivered can help keep everything clear.

Manage NDIS service agreements effectively and securely with Pnyx

With Pnyx care management system, you can create, store, and manage service agreements for all clients in one place. The agreements are stored in Australian-based cloud server so that you can stay compliant and ensure the best security. 

Not only document management, Pnyx also helps your business:

• Create, manage, and track participant goals, progress, and NDIS care plans
• Monitor service delivery against budgets in real time
• Automate NDIS rostering to avoid double bookings and reduce admin
• Improve team communication and client coordination
• Generate and send thousands of invoices in bulk
• Seamlessly integrate with Xero, MYOB, and QuickBooks for fast reconciliation

If you’re ready to simplify how you manage NDIS service agreements and build trust with your clients, book a free demo today.

FAQ

1. What is the purpose of an NDIS service agreement?

An NDIS service agreement sets out the details of the support being delivered, including costs, responsibilities, and how issues will be handled. It helps both the provider and the participant understand what’s expected. It also protects both parties if something goes wrong. Having it in writing keeps everything clear and transparent.

2. Can a participant change providers if they already signed a service agreement?

Yes, participants have the right to change providers at any time. They should follow the termination process outlined in the agreement, which usually includes giving notice. If the participant is unhappy, NDIA encourages them to speak with the provider first. But if they still want to leave, they can without penalty—except for any short-notice cancellation fees if applicable.

3. Does an NDIS service agreement have to be signed?

While not always legally required, having both parties sign the agreement is strongly recommended. For NDIA-managed participants, a signed agreement is mandatory. Signing confirms that both the provider and participant agree to the terms. It also ensures the provider can claim supports as GST-free under tax law.