What are the rules for an NDIS service agreement?

An NDIS service agreement acts as a promise between an NDIS provider and an NDIS Participant to provide a service for payment in return.

Service Agreements are different from an NDIS plan. An NDIS plan lists the NDIS funding a Participant receives, but a Service Agreement is about delivering that support in return for NDIS funding.

Typically, an NDIS service provider is engaged to provide a particular service and in return, the NDIS Participant provides them with funding from their NDIS plan. 

What should a Service Agreement contain?

A service agreement should include:

• the name of the Participant (and their NDIS Number)
• the name and address of the Provider
• the type of service/support that will be provided (known as a Statement of Supports)
• the cost of those supports and total dollar value of service to be provided (Note: prices cannot be increased when NDIS rates increase unless specified in the service agreement)
• the payment terms
• how, when and where the Participant requires the supports to be delivered
• how long the Participant requires the supports to be provided
• when and how the Service Agreement will be reviewed (i.e with each new NDIS Support Catalogue release)
• how the Participant and provider will deal with any problems, complaints or questions that may arise
• what the Participant’s responsibilities are under the Service Agreement
• what the provider’s responsibilities are under the Service Agreement
• what notice is needed for the Participant or provider to change or end the Service Agreement and how this is done

Did you know?

The Australian Tax Office requires a  written service agreement if the service is GST free?

When not charging GST on services, the ATO states that there must be a written agreement between an NDIS Provider and an NDIS Participant (or another person).

Find out more

What format should an NDIS Service Agreement be in?

Does an NDIS service agreement have to be written?

A service agreement protects both the service provider and the Participant, giving each of them recourse when the terms of service are not met.

Service Agreements should be simple and a Participant needs to be able to understand it. 

A service agreement could be a document, use pictures or even be a video depending on a Participant's circumstances.

As a provider, you may have your own standard service agreement, but a Participant does have the right to create their own with your agreement.

Is your Service Agreement Legally Binding?

Many NDIS service providers do not have a service agreement in place when delivering services. Those that do have a service agreement often don't have one that is legally binding!

Make sure you have your service agreement drawn up by a legal team that tailors it to your services specifically (not a template that you filled in the gaps!)

Speak to our legal team to get a free legal health check and find out more about getting affordable help with legal things like Service Agreements, Employment Contracts and more.

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