A service agreement is more than an administrative formality — it is the legal and practical foundation of your support relationship with each participant. A well-written agreement prevents disputes, protects your revenue (especially regarding cancellations), and demonstrates your professionalism. Here’s what every NDIS service agreement needs.
Is a Written Service Agreement Required?
The NDIS Practice Standards require registered providers to have a service agreement with each participant. Unregistered providers are not legally required to have a formal written agreement, but it is strongly recommended. Without one, disputes about what was agreed become very difficult to resolve.
The Essential Elements of an NDIS Service Agreement
Your service agreement must, at a minimum, include:
- Parties to the agreement: Full legal name of your organisation and the participant. If a nominee (parent, guardian, plan nominee) is involved, include their details.
- Commencement date and review date: When does the agreement start? When will it be reviewed (typically aligned to the NDIS plan end date)?
- Supports to be delivered: Specific supports, referenced by NDIS support item name and number where possible.
- Agreed prices: The price per unit for each support. Must not exceed the NDIS price limits. If you charge below the price limit (a common practice to be competitive), document this clearly.
- Frequency and duration: How often each support will be delivered and for how long each session.
- Location: Where will supports be delivered — participant’s home, community, your premises?
- Both parties’ responsibilities: What you commit to do. What the participant commits to do.
- How the agreement can be changed: Either party’s right to vary or end the agreement, and the notice required.
- Cancellation policy: Your short-notice cancellation policy, consistent with NDIS rules. Participants must explicitly agree to this.
- Feedback and complaints: How the participant can raise concerns and your process for addressing them.
- Privacy and consent: Consent to collect and use personal information and to claim against the participant’s NDIS plan.
- Signatures: Signed by both the provider and the participant (or nominee).
The Cancellation Policy — Get This Right
One of the most financially significant parts of the service agreement is the cancellation policy. The NDIS allows providers to charge for short-notice cancellations if:
- The participant cancels with less than the required notice period (currently 2 business days for most supports)
- The provider could not fill the shift with another booking
- The cancellation policy was clearly stated in the service agreement and the participant agreed to it
Providers who don’t have a clear cancellation clause in their service agreements regularly lose significant revenue to last-minute no-shows they cannot claim for. Don’t overlook this.
Managing Agreement Renewals
Service agreements should be reviewed when:
- The participant’s NDIS plan is renewed or varied
- The scope of supports changes significantly
- NDIS prices change (annually)
- At least annually in all cases
Build a review system — either through software or calendar reminders — so you are never caught with an outdated agreement. An expired service agreement creates claiming and compliance risks.
Key Takeaways
- Every participant needs a current, signed service agreement before supports commence.
- Include specific support item names, numbers, and prices.
- Your cancellation policy must be in the agreement to be enforceable.
- Review agreements at every plan renewal and at least annually.
- Keep signed copies securely stored and accessible for audits.