The four conditions
Under the GST law, as the ATO explains it, a supply to an NDIS participant is GST free only if all of these are met:
- The participant has an NDIS plan in effect, meaning approved by the NDIA
- The supply is of reasonable and necessary supports specified in the statement of supports in the participant's plan
- There is a written agreement between you and the participant, or another person such as their plan manager, the NDIA, a guardian or a relative
- The supply is covered by one of the tables in the GST free Supply (National Disability Insurance Scheme Supports) Determination 2021
What the written agreement needs
The agreement must identify the participant and state that the supply is one or more of the reasonable and necessary supports specified in the participant's NDIS plan. It does not have to be one signed document. Letters, emails, quotes, invoices and electronic records can together satisfy it, as long as they show a binding obligation to supply and the plan link.
A service agreement that names the participant and says the supports are reasonable and necessary supports in their NDIS plan is the simplest way to meet this.
The determination tables
Table 1 supplies are covered outright. They include specialist disability accommodation and accommodation or tenancy assistance, help coordinating life stages and supports including daily tasks in shared living, household tasks, travel and transport assistance (excluding taxi fares), interpreting and translation, help to access education and employment, assistive equipment for recreation, early childhood intervention supports, and plan management.
Table 2 supplies, such as assistance with daily personal activities, therapeutic and behaviour supports, assistive equipment and home modifications, are only covered if they also appear in one of three other GST determinations, mainly the Care, Health Services or Residential Care determinations. This is where most mistakes happen.
Common traps
- Supplying more than the plan specifies: where a plan sets an amount of time or quantity, supplies beyond it are not GST free
- No plan in effect: a supply made before the plan is approved, or after it ends, does not qualify
- Therapy outside the tables: the ATO's own example is exercise physiology in a private clinic, which is not GST free under the NDIS rules unless another GST free rule, such as a Medicare benefit being payable, applies
- Supplies to non participants: the NDIS rules only cover supplies to participants under their plan
- Third party packages: when you subcontract, look at each supply in the chain separately
GST and NDIS price limits
The NDIS Pricing Arrangements and Price Limits say that where GST applies to a support, the price limit is inclusive of GST. You cannot charge the full price limit and then add GST. If a supply is GST free, charge no GST and show that clearly on the invoice.
Do you need to register for GST?
GST registration depends on your business, not on the NDIS. You must register once your GST turnover reaches $75,000, or $150,000 for a not for profit organisation. Many sole traders and independent support workers are under the threshold and do not charge GST at all.
If you are registered, GST free sales still go on your activity statement, and you can generally claim credits for the GST in your business purchases. Get advice from a registered tax agent for your situation.
Keep an eye on 2027
The ATO says the current NDIS determination applies to supplies made from 1 July 2021 and before 1 July 2027. Watch for its replacement and check whether any covered supplies change. Separately, since 27 August 2026 providers must keep records about NDIS payments for 7 years, which includes your service agreements and invoices.