What a service agreement is for
A service agreement puts what you and a provider have agreed in writing, before any support starts. It protects both sides: you know exactly what you are paying for, and the provider knows what is expected and how they will be paid.
It is also your best reference if something goes wrong later, such as a disputed invoice, a missed shift or a cancellation fee you did not expect.
Do you have to have one?
For most NDIS supports a written service agreement is not legally required, but the NDIA recommends making one whenever you start with a new provider. The main exception is Specialist Disability Accommodation, where a written agreement is required.
Many providers will not start without one, and some rules depend on it. For example, a provider can only charge a short notice cancellation fee if the service agreement sets out cancellation terms.
What a good service agreement includes
The NDIA suggests covering three things: what supports you will get, what they cost, and who is responsible for what. In practice that means:
- The supports, and how, when and where they will be delivered
- The price for each support, and the support item it will be claimed under
- Any costs for materials or products, and how provider travel is charged
- Whether GST applies, and how the provider will be paid (by the NDIA, your plan manager or you)
- The cancellation policy and how much notice each side must give
- How prices or the agreement can change, and how either side can end it
- How to raise a concern or make a complaint
- How long the agreement runs, usually no longer than your current plan
Prices, price limits and fair pricing
If you are agency managed or plan managed, the prices in your agreement must be at or below the NDIS price limits for each support. If you are self managed, you are not bound by the price limits in the same way, but they are a useful benchmark when you compare quotes.
All providers, registered or not, must follow the NDIS Code of Conduct. The NDIS Commission's fair pricing guidance says providers must not charge you more than they would charge anyone else for the same support just because you are an NDIS participant. Check the hourly rate, travel and any extra fees line by line.
Cancellation terms
The NDIS Pricing Arrangements set out what counts as a short notice cancellation, and how much a provider can claim, and the rules differ by type of support. If you are agency managed or plan managed, any cancellation fee must follow those rules. If you are self managed, the fee should be reasonable and in line with the cost of the support.
Before you sign, make sure you understand how much notice you need to give, how to give it, and what you will be charged if you cancel late or are not home.
Tips before you sign
- Read it all, and ask for plain English if anything is unclear. Take it home to read before signing
- Check the agreement lines up with the funding in your plan, not just the total
- Ask how and how often you will be invoiced. From 1 December 2026 claims must be made within 90 days of the support
- Keep a signed copy with your plan and invoices. Participants must keep records of NDIS payments for 3 years
- Remember you can change providers. Check how much notice the agreement asks for if you want to end it
For providers
Use simple language, avoid unfair terms, and walk the participant through the agreement rather than just sending it. Spell out cancellation terms, because without them you cannot claim short notice cancellations. Review agreements whenever a client's plan is reassessed or renewed: after the October 2026 funding reset, some clients will have less available in community participation and daily living skills budgets than before.