NDIS providers run a strange kind of business. Demand is strong, prices are capped by the scheme, nearly all your revenue comes from one government source through three different payment channels, and your biggest cost is a workforce paid under one of the more complex modern awards. Margins are made or lost on rostering, travel, cancellations and how quickly you claim.
We work with sole support workers, therapy practices, support coordination businesses, supported independent living providers and larger registered providers. Here is what we see and what we do.
Why do NDIS providers run into cash flow problems?
- Claiming late. Supports are delivered this week, claimed next month, and wages are due every week. The gap is funded from your own pocket or an overdraft.
- Rejected claims. Wrong line item, expired plan, funds exhausted in a category, or a service agreement that doesn't match what was delivered.
- Price limits vs real costs. Revenue per hour is capped, but award penalty rates, travel time, broken shifts and supervision aren't.
- Unbilled hours. Travel, documentation and training that can't be claimed, or are claimed inconsistently.
- Rapid growth. New participants mean new staff before the first payment arrives.
What does an NDIS provider accountant do for you?
- Claim and payment reconciliation: delivered supports matched to claims, claims matched to payments, rejections followed up.
- Bookkeeping in Xero with income split by funding type (agency, plan-managed, self-managed) and by service line.
- Payroll under the SCHADS award and Payday Super, with every pay run checked.
- BAS with GST-free supports and taxable supplies separated correctly.
- Cash flow forecasting around growth, new hires and claiming cycles.
- Structure, tax planning and registration support from the financial side.
How do NDIS payments flow, and what does each mean for your books?
| Funding type | Who pays you | Registration needed? | Bookkeeping point |
|---|---|---|---|
| Agency-managed (NDIA-managed) | The NDIA, via a payment request in the provider portal | Yes, you must be a registered provider | Reconcile bulk payments back to each participant and support |
| Plan-managed | The participant's plan manager, from your invoice | No, unregistered providers can be used | Track each plan manager's payment times; chase overdue invoices |
| Self-managed | The participant, from your invoice | No | Clear invoices and receipts; agreement terms on payment |
Which numbers should an NDIS provider track?
| KPI | How it's worked out | Why it matters |
|---|---|---|
| Worker utilisation | Claimable hours ÷ paid hours | Travel, gaps and admin eat the margin |
| Margin per support hour | Revenue per hour less fully loaded worker cost (wages, penalties, super, leave, workers compensation) | Shows which services and shift types make money |
| Wages as % of revenue | Total employment costs ÷ revenue | The main driver of profit |
| Claim rejection rate | Rejected claims ÷ claims submitted | Admin quality and cash delays |
| Days to claim | Days between delivery and claim | Cash you're lending the scheme |
| Debtor days by funding type | Unpaid invoices ÷ average daily revenue | Slow plan managers or participants |
| Vacancy rate (SIL) | Vacant days ÷ available days | One empty room can wipe out a house's margin |
Example: where an hour of support goes
Say (hypothetically) a weekday daytime support hour is billed at $68. A support worker's base rate plus casual loading, super, workers compensation and leave provisions comes to $50 an hour. That looks like an $18 margin. Add 20 minutes of unclaimed travel between clients and the real cost of that hour rises to about $67, leaving $1. The same hour on a Sunday, at a higher award rate, can lose money unless the price for that time is higher too. This is why we report margin by shift type, not just in total.
What tax and compliance issues are specific to NDIS providers?
GST-free NDIS supports
A support is GST-free only if all four conditions are met (ATO guidance):
- The participant has an NDIS plan in effect.
- The support is a reasonable and necessary support specified in the participant's plan.
- There is a written agreement with the participant (or their representative) that identifies the participant and states the supply is a support under their plan.
- The support is of a kind covered by the Minister's GST-free supply determination.
Supports outside the plan, or beyond the plan's amounts, are not GST-free NDIS supplies. Where a plan manager arranges the support, the supply is still made to the participant, and the plan manager can sign the written agreement on their behalf. A missing or vague service agreement is the most common reason a supply fails the test.
The SCHADS award
Most disability support workers are covered by the Social, Community, Home Care and Disability Services Industry Award (Fair Work summary). Its rules on minimum engagements, broken shifts, sleepovers, travel between clients, overtime and weekend and public holiday penalties are where underpayments usually happen. Since 1 January 2025, intentional underpayment is a criminal offence. Our award underpayment agent checks each employee's pay against the award and quantifies any back pay and super shortfall, and an accountant reviews it before anything is finalised. Our award compliance service covers the full review.
Payday Super, contractors and payroll tax
From 1 July 2026, super must reach each employee's fund within seven business days of payday. Contractors paid mainly for their labour can be owed super too. Once your group's wages pass the state threshold, payments to contractor support workers can also count for payroll tax under the relevant contract rules. Our guides on Payday Super and employee vs contractor explain both.
Registration and the 2026 scheme changes
Registered providers must meet the NDIS Practice Standards and audit requirements; all providers must follow the NDIS Code of Conduct. From 1 July 2026, supported independent living providers and NDIS digital platform providers must be registered with the NDIS Commission (NDIS Commission). Further registration and scheme changes are still being worked through, so check the NDIS Commission's current requirements before you change your setup. Price limits are reviewed each year, so your pricing, rosters and forecasts should be reviewed with them.
What's the right structure for an NDIS business?
| Situation | Common structure | Why |
|---|---|---|
| Solo support worker or therapist | Sole trader | Simple and cheap; check the PSI rules before using a company |
| Growing team of employees | Company, often owned by a family trust | Limited liability for staff, participant and contract risk |
| Owning a SIL property | Property in a separate trust or entity, leased to the operating company at market rent | Keeps the property away from operating risk |
| Mission-driven provider wanting tax concessions | Not-for-profit company limited by guarantee, possibly a registered charity | Income tax exemption and possibly FBT concessions for salary packaging, but profits can't be distributed to owners |
A for-profit company can't easily become a charity later, and a charity can't pay dividends, so this decision is worth getting right at the start. Our not-for-profit page covers the charity side, and our guide to sole trader vs company vs trust covers the for-profit options.
How do we work with NDIS providers?
- Free strategy call. We look at your funding mix, workforce and current setup.
- Review. Service agreements against the GST-free conditions, award classifications and pay rates, and claim rejection history.
- Setup. Your rostering and claims software connected to Xero, with income tracked by funding type and service.
- Weekly payroll and Payday Super, with SCHADS checks built in.
- Monthly report on margin per hour, utilisation and cash, with a rolling forecast. Our cash flow forecast agent builds the model and your accountant reviews the assumptions with you.
- BAS and tax each quarter and year, signed off by a qualified accountant.
The work runs on Nagaris. AI agents draft; qualified accountants review and sign off, and nothing goes to you, your staff or the ATO without a person approving it. Client data is stored in Australia.
"We have been with BPAG for almost a year now and have felt significant improvement with the business, our own knowledge and motivation… BPAG are by far the best." Veronica Thomas, Google review
What does it cost?
Providers with a team on payroll usually sit on Business Insights from $249 per week + GST, which includes weekly payroll for up to 10 staff and monthly management reports. Larger providers planning growth, SIL houses or funding use Fractional CFO from $499 per week + GST. See the pricing page.
If you're a sole support worker invoicing a handful of participants, a simple invoicing app and an annual return may be enough. We'll tell you.
What should you send us?
- Your ABN, GST and NDIS registration details (if registered)
- A sample of service agreements with participants
- Three months of claims, payment remittances and plan manager payment reports
- Rostering or timesheet exports and payroll reports
- Employment contracts, contractor agreements and the classifications you use
- Xero access or last year's financial statements and tax return
- Any NDIA, NDIS Commission or ATO correspondence
Photos and exports from your phone are fine. No portal passwords.
Frequently asked questions
Do NDIS providers have to register for GST?
If your GST turnover is $75,000 or more you must register, and GST-free NDIS supplies count towards that turnover. Being registered is usually an advantage for a provider making GST-free supplies, because you can claim GST credits on vehicles, equipment and other costs while charging no GST on qualifying supports.
Do I need to be a registered NDIS provider?
You must be registered to deliver supports to agency-managed participants, and from 1 July 2026 supported independent living and NDIS digital platform providers must be registered. Unregistered providers can generally support self-managed and plan-managed participants, but must still follow the NDIS Code of Conduct. Registration rules are changing, so check the NDIS Commission's current requirements for the supports you provide.
Are NDIS providers taxed differently from other businesses?
A for-profit NDIS provider pays income tax like any other business; there's no special rate. A provider that is a registered charity and endorsed as income tax exempt doesn't pay income tax, and some may have FBT concessions for salary packaging. The structure you choose decides which applies.
Can my support workers be contractors?
Sometimes, but the label in the contract doesn't decide it. If you control when, where and how they work, roster them, and they work only for you, they may be employees under employment law, and you may owe super and payroll tax either way. Our employment law agent works through the tests and your accountant reviews the advice with you.
What records should I keep for NDIS claims?
Keep the service agreement, evidence the support was delivered (shift notes, timesheets, case notes), the price and line item claimed, and the payment received. The NDIA can review claims and recover payments it considers weren't properly made. Clean records also make your bookkeeping and BAS much simpler.
How quickly do NDIS payments arrive?
Agency-managed claims are usually paid quickly once a valid claim is submitted through the provider portal. Plan-managed and self-managed invoices depend on the plan manager or participant, and can take longer. The biggest delays we see come from providers claiming late or having claims rejected for errors, not from the payer.
Official sources
General information only, current as at 18 October 2026. It is not personal tax, legal or financial product advice and doesn't take your circumstances into account. Talk to us before you act. Where a recommendation needs a licensed financial adviser or a solicitor, we work alongside them.