Service agreement

What is an NDIS service agreement?

An NDIS service agreement is an agreement between a participant and a provider that sets out which supports will be delivered, how, when and where, what they cost, and each side's responsibilities, including cancellations, changes, complaints and ending the agreement. The NDIA recommends one whenever you start with a new provider. A written agreement is only mandatory for specialist disability accommodation, but registered providers are audited on how they make agreements, and a written agreement is one of the ATO's conditions for supports to be GST-free.

The NDIA describes a service agreement as making clear what you and your provider have agreed when you use your NDIS budget to pay for supports, and notes it is covered by Australian Consumer Law (NDIA: What is a service agreement). It can be a document you both sign, or, for most supports, something you agree verbally. In practice almost every provider uses a written agreement, because it is the record of what the participant agreed to, including prices and charges such as short notice cancellations and provider travel.

When a service agreement is required

Whether you must have a written agreement depends on the support, the provider's registration and the tax position. The rules come from four different places:

So while the NDIA's own rule only makes written agreements compulsory for SDA, most providers need one in practice: registered providers because auditors check it against the NDIS Practice Standards, and almost all providers because GST-free treatment depends on it.

What the Practice Standards expect

For registered providers, the Core module outcome on service agreements with participants is the benchmark (NDIS Commission: Core module). The quality indicators expect that:

• the agreement is developed in collaboration with the participant, explains the supports, and sets out any conditions and why they apply;
• the participant is supported to understand it, using the language, communication mode and terms they are most likely to understand;
• where the agreement is written, the participant gets a copy signed by both parties; where that isn't practicable or the participant chooses not to have one, a record is made of the circumstances;
• the agreement covers arrangements for supports in an emergency or disaster;
• where SIL is delivered in SDA, there are documented arrangements with each participant and the SDA provider covering issues such as vacancies, conflicts and changes in circumstances.

What to include in an NDIS service agreement

There is no official NDIA template, but a complete agreement covers the points below. Keep the language plain, and consider an Easy Read version for participants who need it.

The schedule of supports is where billing disputes start or are prevented. List each support with its support item number, how often and for how long, where it is delivered, the agreed unit price and an estimated total. For NDIA-managed and plan-managed participants, prices must be at or below the price limit; self-managed participants can agree a different price, which should be recorded clearly. The free NDIS service agreement generator builds a priced schedule from current item numbers, and the cancellation calculator helps you word cancellation terms.

Cancellation, travel and non-face-to-face terms

The NDIS pricing arrangements let providers claim short notice cancellations and provider travel for eligible support items, subject to conditions and the terms of the service agreement, and expect cancellation terms to be documented in it. If the agreement doesn't mention a charge, don't claim it. Say whether you'll claim travel time and non-labour travel costs, which activities count as non-face-to-face supports, and how each will appear on invoices.

How to make a service agreement

Who signs matters. The person with authority to make the decision signs: usually the participant, or their plan nominee, guardian or, for a child, a parent or child representative. Record who signed, in what capacity, and how the agreement was explained, for example read aloud, in Easy Read or with an interpreter.

What participants should check before signing

• The supports listed match what you asked for, and the hours fit within your budget for the plan or funding period.
• Prices are clear for each support and time of day, and you know whether they can change during the agreement.
• You understand when a cancellation can be charged and how much notice you need to give.
• Travel charges are explained, including how they are shared if a worker visits several people on one trip.
• The agreement says how to complain, including to the NDIS Quality and Safeguards Commission, and how to end it.
• Nothing in it stops you from changing providers or makes your home depend on using a particular support provider.

You can take time to read it, ask questions, and have a support person, advocate or support coordinator look at it before you sign.

Service agreement vs quote, service booking and tenancy agreement

Several NDIS documents sit close to the service agreement and are easy to confuse. The service agreement is the participant–provider agreement; the others either feed into it, sit beside it, or belong to the NDIA's systems.

Is a service agreement legally binding?

It can be. A signed agreement setting out supports, prices and terms is generally treated as a contract, and the NDIA notes service agreements are covered by Australian Consumer Law. If you offer the same standard agreement to every participant, the unfair contract terms rules are likely to apply, and penalties for using unfair terms in standard form contracts have applied since 9 November 2023 (ACCC: contracts and unfair terms). Terms that let only the provider change prices, or that impose large exit fees, are worth reviewing with a lawyer.

A service agreement can't override the NDIS rules. A clause allowing prices above the limit for an NDIA-managed or plan-managed participant, or charging for something the pricing arrangements don't allow, won't make that claim payable.

Ending a service agreement

There is no single NDIS-wide notice period for ending a service agreement. The agreement should set one that is reasonable for both sides, say how notice is given, and allow for immediate termination in serious situations such as a risk to safety. Participants have the right to choose and change providers, so a long notice period or an exit fee can work against that choice and may be an unfair term in a standard form contract.

When an agreement ends, registered providers are expected to support a planned transition, so the participant isn't left without support. Agree a final date, finish claiming for supports delivered up to that date, and hand over relevant information to the new provider with the participant's consent.

Keeping agreements current in 2026

An agreement is only useful while it matches what is delivered and charged. Review it when:

• the participant gets a new plan or a plan reassessment, or their plan management type changes;
• supports, frequency, location or workers change significantly;
• prices change. The 2026–27 NDIS pricing schedule took effect on 24 September 2026, under the first ministerial pricing determination;
• the participant's nominee, guardian or decision-making arrangements change;
• the end or review date approaches.

Treat each update as a new version: record what changed, get it signed, give the participant a copy and keep the old version. The 2026 NDIS amendments require providers to keep records relating to NDIS payments for 7 years from 27 August 2026, according to the Department of Health, Disability and Ageing's summary of the changes. Superseded agreements that support past claims fall into that category.

Common service agreement mistakes

• Supports continuing after the agreement expired. Diary the end date and renew before it lapses.
• Prices on invoices that don't match the agreement. Update the schedule when prices change, and get the change agreed.
• Charging cancellations or travel without a clause. If it isn't in the agreement, the charge is hard to justify.
• No record of how it was explained. Auditors look for evidence the participant understood it.
• Signed by someone without authority. A family member who isn't a nominee or guardian generally has no authority to sign for an adult participant.
• Mixing tenancy and support terms. For SIL and SDA, keep tenancy separate so the participant can change support provider without losing their home.
• Using it to get around the rules. An agreement can't make a non-claimable charge claimable.