How to be an NDIS Sole Trader, Contractor or Independent Support Worker with an ABN

Why more support workers are going independent

The number of people working as independent NDIS support workers has grown significantly since the NDIS expanded across Australia. It's not hard to see why. When you work through an agency or care company, the participant pays the full NDIS hourly rate, but the agency takes a cut before you're paid. When you work directly with a participant as an independent contractor, the participant pays you directly. They often pay less than the agency rate (which stretches their NDIS funding further), and you take home more per hour than you would through an employer. It's win-win.

Beyond pay, working as an NDIS sole trader gives you control over your schedule, your clients, and how you deliver your services. You can take on work that fits around your life, support people in your local area, and build genuine long-term relationships with participants rather than being assigned by a roster.

This guide walks you through everything you need to know to work as an independent support worker, contractor, or sole trader in the NDIS.

Who can hire an independent support worker?

Independent NDIS support workers, those operating as sole traders or contractors with an ABN, can work with:

• Self-managed NDIS participants, who manage their own funding and can hire any support worker they choose
• Plan-managed NDIS participants, whose plan manager handles payments but who can still choose any provider

This covers a significant proportion of all NDIS participants in Australia. You do not need to be a registered NDIS provider to work with self-managed or plan-managed participants, your ABN is what's required.

Why participants choose independent support workers

Understanding why a participant would hire you directly helps you position yourself and connect with the right clients.

• Flexibility: Many care agencies have minimum shift lengths: typically two hours. An independent support worker can agree to shorter or more flexible arrangements, which suits participants who only need help for an hour in the morning or a couple of hours in the afternoon.
• Familiarity: Participants can hire someone they already know and trust, such as a neighbour, a friend, a community member, or someone from a group or club they attend. This is particularly valuable for children and participants who find it difficult to build rapport with new people.
• Better use of funding: Because the participant isn't paying agency overhead, the hourly rate is often lower than what they'd pay through a care company, meaning their NDIS funding goes further without any reduction in the quality of support.

Here are some real examples of how MyCareSpace members have hired independent support workers:

Contractor vs employee: why it matters

Before you start working as an independent support worker, it's important to understand the difference between working as a contractor and working as an employee, because your legal, financial, and tax obligations are different depending on which arrangement applies.

As an independent contractor (sole trader with an ABN), you can typically:

• Decide how the work will be done
• Agree on hours and schedule directly with the participant
• Be engaged for a specific task or time period
• Hold your own insurance
• Use your own tools and equipment
• Pay your own tax and manage your own superannuation
• Issue invoices and have an ABN
• Work for multiple clients at the same time

There is no single factor that determines whether you are a contractor or employee, as it's based on the overall working arrangement. The ATO has a helpful online tool that guides you through this assessment.

You can also refer to the Fair Work Ombudsman's guidance on independent contractors for more detail.

What you need to get started as an NDIS independent support worker

1. An ABN (Australian Business Number)

Your ABN is the foundation of operating as a sole trader or independent contractor. It identifies you as a business entity for tax purposes and is required to issue invoices to participants or their plan managers.

Applying for an ABN is free and can be done online through the Australian Business Register. The process is straightforward and usually completed within a day or two.

Apply for an ABN through the ATO →

2. Insurance

As an independent support worker, you are responsible for your own insurance. This is non-negotiable: without appropriate cover, you are personally liable if something goes wrong while you're working with a participant.

At a minimum, you need:

• Public liability insurance: covers you if a participant, their family, or a third party suffers injury or property damage as a result of your work
• Professional indemnity insurance: covers you against claims arising from the advice or services you provide

Personal accident insurance is also worth considering, as it provides income protection if you're injured and unable to work.

MyCareSpace has worked with insurers to make affordable, purpose-built insurance available to independent NDIS support workers. Cover can often be arranged online in minutes.

Find insurance for NDIS support workers →

3. Police Check and Working with Children Check

You need both a current Police Check and a Working with Children Check (WWCC) before you begin supporting participants, particularly if you will be working with children.

Each Australian state and territory manages these checks through its own system, so the process varies slightly depending on where you live. A quick Google search for your state will point you to the right government website. Checks are usually straightforward to obtain and processed relatively quickly.

4. NDIS Worker Screening Check

In addition to a Police Check, some participants and arrangements may require an NDIS Worker Screening Check. This is a national check specifically for people working with NDIS participants, administered through your state or territory's screening unit.

If you plan to work with children or high-risk supports, this check is strongly recommended even if not strictly required for unregistered providers. It also signals professionalism and gives participants and their families greater confidence in you.

Learn more about the NDIS Worker Screening Check→

5. A Service Agreement

Even if you know the participant personally, a written service agreement is essential. It protects both you and the participant by clearly setting out the terms of your arrangement, including the services you'll provide, your hourly rate, cancellation policies, and notice periods.

A service agreement prevents misunderstandings and gives both parties a clear reference point if any issues arise. It really does benefit everyone involved.

Read MyCareSpace's guide to writing an NDIS service agreement →

How to invoice as an independent NDIS support worker

As a sole trader, you will need to issue invoices for your support hours. What your invoice needs to include depends on whether the participant is self-managed or plan-managed.

• For self-managed participants: send your invoice directly to the participant. They manage their own funding and pay you directly.
• For plan-managed participants: send your invoice to the participant's plan manager. You'll need their email address before you start work. The plan manager processes the payment on the participant's behalf.

Your invoice should include:

• Your full name and ABN
• Your business name (if you have one)
• Invoice date and invoice number
• Description of the support provided
• Support item number (required for plan-managed participants, use the NDIS Support Catalogue to find the right one)
• Dates of support delivered
• Number of hours at the agreed hourly rate
• Total amount
• GST (note: most NDIS supports are GST-free, but confirm with an accountant if unsure)
• Your payment terms and bank details

Keeping your invoices clear and accurate helps ensure prompt payment, particularly from plan managers, who process a high volume of invoices and appreciate correct formatting.

How to find NDIS participants as an independent support worker

Once you're set up, the next step is connecting with participants. There are several effective ways to find clients as an independent NDIS support worker:

• List on MyCareSpace: MyCareSpace connects independent support workers and sole traders directly with NDIS participants who are looking for services in their area. With over 115,000 monthly visitors actively searching for NDIS providers, listing your services is one of the most efficient ways to find new clients.
• Word of mouth: Tell people in your community what you do. Many participants find their best support workers through personal networks, such as neighbours, church communities, sports clubs, and social groups.
• NDIS Facebook groups: There are active Facebook communities for NDIS participants and families where independent support workers can introduce their services. Search for NDIS groups in your local area.
• Connect with support coordinators: Support coordinators help participants find and arrange supports. If a coordinator in your area knows who you are and what you offer, they may refer participants to you.

Managing tax and superannuation as a sole trader

As an independent contractor, you are responsible for managing your own tax and superannuation, unlike employees, whose employer handles these obligations.

• Tax: You will need to declare your income and pay tax on your earnings. Consider setting aside a portion of each payment to cover your annual tax bill. A registered tax agent or accountant can help you understand what you owe and what expenses you can claim.
• Superannuation: As a sole trader, you are not required to make super contributions for yourself, but it's strongly recommended. You can make voluntary contributions to a super fund of your choice.
• GST: If your annual income exceeds $75,000, you will need to register for GST and lodge Business Activity Statements (BAS). You may be below this threshold when you're starting out, but it's worth monitoring as your business grows.

Summary: your checklist for getting started