Price Differentiation and Fair Pricing
Price Differentiation is not allowed.
Price differentiation is when a provider charges an NDIS Participant more for something than they would charge if the person was not an NDIS Participant.
Fair pricing is when there is no major price difference between the cost of a product or service for an NDIS participant compared to other customers.
NDIS Commission Code of Conduct
The NDIS Commission Code of Conduct applies to both Registered and Unregistered Providers operating in the NDIS.
In Dec 2023, it was updated with new rules on price differentiation.
If a provider sets a higher price for NDIS participants and cannot justify the price difference, they may be in breach of the Code of Conduct and could face penalties. The Code of Conduct now includes rules about price differentiation.
The new NDIS Rules are:
- Providers must not charge a higher price for goods to an NDIS participant than to a person who is not an NDIS participant. For example, a provider would not be allowed to sell a shower chair to a person who is not an NDIS participant for $100, but sell the same kind of chair to an NDIS participant for $170.
- Providers cannot say (for example advertise or tell people) they charge a higher price to NDIS participants. For example, they cannot advertise on their website a sale price of the shower chair, but say the sale price isn’t for NDIS participants.
- This change is only about goods, not services. Goods are things that you can touch, feel and see. Services are work done or help provided to a person. In the future, further changes might be made about other supports, such as allied health services or in-home supports services.
- The new rules also highlight that all key personnel of NDIS providers are bound by the Code of Conduct, stating:
- Key personnel of NDIS providers are subject to the NDIS Code of Conduct, in the same way as NDIS providers and workers.
- Key personnel include people who make executive decisions for an NDIS provider, like members of the board or senior executives.
A New Taskforce
A new taskforce to crackdown on unfair price hikes for National Disability Insurance Scheme (NDIS) Participants is now operational.
The taskforce is made up of:
- The Australian Consumer and Competition Commission (ACCC) (chair)
- NDIS Quality and Safeguards Commission
- National Disability Insurance Agency
The NDIS Commission will:
- tackle illegal overcharging of NDIS participants.
The ACCC will focus on:
- investigating and clamping down on misleading conduct,
- unfair contract terms and
- anti-competitive agreements that might impact NDIS participants, while supporting the taskforce’s work.
What happens if Providers overcharge?
Those found in breach of this federal law could face severe action imposed by the NDIS Commission.
Penalties include:
- permanent banning
- infringement and compliance notices
- civil financial penalties
- injunctions imposed
- where fraud is suspected, urgent referral to the fraud fusion taskforce for criminal sanctions against the provider found guilty of 'rip-offs'.
The NDIS Quality and Safeguards Commission respects the rights of participants to choose the products and services they need, and understands that convenience, quality and availability may be considered when choosing providers.
What if you feel you are being overcharged?
If you think you’re being overcharged by a provider, take these steps:
- Do a price check: Go online and search for the same or similar products.
- Check your service agreement: Make sure you've received everything listed in the written agreement. If you do not have this document, or it's out of date, ask your provider for a copy.
- Talk to your provider: If you’re comfortable speaking with your provider, ask them to explain any price differences – they should be able to give you reasons.
- Contact the NDIS Commission: If you cannot resolve the issue with your provider, email pricehelp@ndiscommission.gov.au
Who to contact
If you feel you are being overcharged:
Email pricehelp@ndiscommission.gov.au or call 1800 035 544
Unsafe or poor-quality NDIS supports or services
Make a complaint online or call 1800 035 544 (TTY 133 677)
Other complaints about goods and services
We encourage you to report conduct to the ACCC when you think you have:
- been misled or deceived by a provider or business
- paid for goods or services and not received them
- been pressured into signing a service agreement or other contract that has unfair terms
- bought goods that are faulty, don’t match the description, or don’t do what the seller said they would
- bought services that were provided late or not at all, or which do not meet the needs you communicated.
You can learn more about your rights when buying products and services on ACCC website.
Provider obligations
We expect all registered and unregistered providers to act with honesty, integrity and transparency when pricing their products and services for NDIS participants.
You must be able to justify your pricing. If you think you may be charging too much, review your pricing and adjust it.
Penalties apply if the Commission believes providers are breaching the Code of Conduct.
If you suspect another provider is overcharging, you can report it to the Commission by emailing pricehelp@ndiscommission.gov.au
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