Are NDIS payments taxable?

​​If you are a supplier of disability supports and you are registered for GST, your supplies to a National Disability Insurance Scheme (NDIS) participant are usually GST-free.

NOTE: If you make a mix of taxable and GST-free supplies, you may need to review your accounting systems to ensure the correct GST treatment of your supplies.

According to the Australian Tax Office, NDIS services and supports are GST-free if:

1. the NDIS participant has an active NDIS plan
2. the services or supports supplied are 'reasonable and necessary supports' 
3. there is a written service agreement between the provider and the NDIS participant (or another person)
4. it is a supply covered by one of the tables in schedule 1 and 2 on the NDIS Determination: A New Tax System (Goods and Services Tax) (GST-free Supply—National Disability Insurance Scheme Supports) Determination 2021

Schedules 1 and 2 in the Disability Minister's Determination of GST-Free NDIS services are listed as follows:

Schedule 1​

The following care supports are deemed to be GST-free:

• Specialist disability accommodation (within the meaning of the National Disability Insurance Scheme rules) and accommodation/tenancy assistance
• Assistance in coordinating or managing life stages, transitions and supports, including daily tasks in a group or shared living arrangement
• Household tasks
• Assistance with and training in travel/transport arrangements, excluding taxi fares
• Interpreting and translation
• Assistance to access and maintain education and employment
• Assistive equipment for recreation
• Early intervention supports for early childhood
• Management of funding for supports in a participant’s plan

Schedule 2

• Assistance with daily personal activities
• Specialised assessment and development of daily living and life skills, including community participation
• Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training
• Behavioural support and therapeutic supports
• Home modifications

Schedule 2 also includes the following supports received by NDIS Participants may be specified under other Determinations (legislation) where they are deemed to be GST-free:

(i)The GST-free Supply (Care) Determination 2017 list these types of care services as GST free services

• Home help
• Personal care
• Home maintenance
• Home modification
• Provision of food
• Provision and delivery of meals at home or at a day care or similar centre
• Respite care
• Transport to and from daycare or similar centres and for shopping trips, social outings and for health-related purposes
• Community paramedical services
• Community Nursing
• Assessment of the person’s care needs
• Referral to other community care services
• Training in the use of aids and appliances and in how to get the most out of the other services mentioned in this Schedule
• Individual care planning or case management
• Provision of basic equipment for social support
• Day care
• Linen services
• Counselling
• Community advocacy for a purpose mentioned in section 81-1 of the Aged Care Act 1997
• Medication management
• Provision and monitoring of personal alert systems
• Provision of therapeutic supplies and services under the program known as the Psychogeriatric Unit Program administered by the Commonwealth
• Continence management

(ii) Clause 6 of the A New Tax System (Goods and Services Tax) (GST free Supply—Residential Care—Government Funded Supplier) Determination 2015; and  

(iii) Clause 4 of the GST-free Supply (Health Services) Determination 2017