NDIS Service Agreement Guide
A service agreement is the contract between you and your NDIS provider. It protects your rights, sets out what you will receive, and governs how disputes are handled. Here is what every participant should know before signing one.
What is an NDIS Service Agreement?
An NDIS service agreement is a written contract between a participant and a provider that documents the supports to be delivered. It is required for all registered NDIS providers under the NDIS Practice Standards, and strongly recommended for unregistered providers too.
The agreement sets out:
- · What supports will be delivered and at what frequency
- · The price for each support, including the relevant NDIS line item number
- · How and when the provider will be paid
- · The cancellation policy and notice requirements
- · How disputes will be resolved
- · Each party's right to end the arrangement
A service agreement is not just paperwork — it is the reference document you return to if something goes wrong with your supports.
What Must an NDIS Service Agreement Include?
Support description
A clear description of each support to be delivered — what it is, how often, and how it will help you work toward your NDIS goals.
Line items and rates
The specific NDIS support item number (e.g. 01_011_0107_1_1 for daily activities), the hourly or fixed rate, and whether the rate is GST-inclusive or exclusive.
Frequency and schedule
How often supports will be delivered, the days or times agreed, and what happens if a session needs to be rescheduled.
GST treatment
Most NDIS supports are GST-free. The agreement should state whether GST applies to each support item to avoid unexpected costs.
Payment method and invoicing
How and when the provider will invoice (e.g. weekly, fortnightly), whether payment is via the myplace portal, plan manager, or self-managed account, and payment timeframes.
Cancellation and notice policy
The short-notice cancellation period (typically 2 business days for most supports under NDIA rules), the cancellation charge rate (up to 100%), and the process for cancelling.
Consent clauses
Your consent to the provider collecting and using personal information, sharing information with the NDIA, and any other data handling practices relevant to service delivery.
Dispute resolution process
The steps for raising and resolving a complaint or dispute — typically starting with an internal complaint, escalating to the NDIS Quality and Safeguards Commission if unresolved.
Tip: The NDIA publishes a free Service Agreement template on the NDIS website that registered providers can adapt. Ask your provider if they have used this template or can explain how their agreement aligns with NDIS requirements.
Service Agreement vs Verbal Agreement
Some providers — particularly smaller or newer ones — may attempt to arrange supports verbally without a written agreement. This creates significant risk for participants:
No record of the agreed rate
Without a written rate, a provider could invoice above what was verbally discussed and it becomes your word against theirs.
No clear cancellation terms
If there is no written cancellation policy, a provider may attempt to charge short-notice fees that were never discussed.
No dispute resolution pathway
Without a written process, resolving disagreements relies entirely on goodwill — which may not exist when things go wrong.
Registered providers may be breaching the Practice Standards
A registered provider operating without service agreements can be reported to the NDIS Quality and Safeguards Commission.
Always insist on a written service agreement before your first session. Signing takes minutes; the protection it provides is ongoing.
Red Flags in an NDIS Service Agreement
Before signing any service agreement, review it carefully for these warning signs:
An agreement that prevents you from exiting for a fixed term (e.g. 12 months) without penalty is not consistent with NDIS principles. You always have the right to end a service agreement.
Registered providers cannot charge above Price Guide limits. Be very cautious if an unregistered provider quotes above the NDIA rate — the excess will come from your own funds.
If the cancellation clause does not specify the notice period and charge rate clearly, you may face unexpected fees. Always ask for clarity before signing.
A compliant provider should have a documented complaints and dispute resolution process. Its absence suggests the provider may not be following the NDIS Practice Standards.
Any clause purporting to prevent you from terminating is unenforceable under Australian consumer law. Never sign an agreement that claims you cannot exit.
If you are unsure about any clause in a service agreement, ask your support coordinator or contact the NDIS Quality and Safeguards Commission before signing.
NDIS Cancellation Policy Explained
The NDIA allows registered providers to charge a short-notice cancellation fee of up to 100% of the agreed support price when a participant cancels with less than 2 clear business days' notice for most supports. For some supports (including certain overnight and SDA supports), the notice period is 5 business days.
This rule exists because providers often cannot fill cancelled appointments at short notice and their workers still need to be paid. However, the cancellation clause must be written into your service agreement — providers cannot charge short-notice fees without your prior written agreement to them.
| Scenario | Outcome |
|---|---|
| You cancel with less than 2 business days' notice | Provider can charge up to 100% of the agreed support price for that session |
| You cancel with 2 or more business days' notice | No cancellation charge applies — you only pay for supports actually delivered |
| Provider cancels on you at short notice | The provider cannot charge any cancellation fee when they initiate the cancellation |
| Repeated short-notice cancellations by participant | Provider may escalate to ending the agreement with appropriate notice after repeated instances |
If a provider consistently charges maximum short-notice fees for minor late notice, this may be worth raising with your support coordinator or the NDIS Commission.
How to End an NDIS Service Agreement
Check the notice period in your agreement
Most agreements require 2–4 weeks written notice. Read your agreement carefully. If no notice period is stated, give at least 2 weeks as a professional courtesy.
Notify your provider in writing
Send a written notice — email is acceptable — stating the date you are ending the agreement and your last session date. Keep a copy. You do not need to give a reason.
Cancel or reduce your service booking
If your plan is NDIA-managed, update or remove the service booking in the myplace portal. If plan-managed, notify your plan manager so they stop processing invoices from that provider after your end date.
Organise your replacement provider
Arrange a new service agreement with your replacement provider before your last session where possible. Your NDIS plan and funding are fully portable — they follow you, not your current provider.
Your NDIS plan is portable. Switching providers does not affect your funding or plan goals. You are entitled to choose, change, and end providers at any time within the requirements of your service agreement.
If You Are the Provider Writing the Agreement
Everything above is written for participants reading an agreement. If you are on the other side of it — a registered or aspiring provider drafting one — the service agreement is also an audit document. Your auditor will want to see it alongside the policies, procedures and registers required by the NDIS Practice Standards.
Provider Audit Ready publishes editable service agreement, policy and register templates matched to the Practice Standards, and ProviderPass bundles the same kind of documentation into a single NDIS audit pack for providers going through Verification or Certification for the first time.
NDIS Service Agreement — FAQ
Need Help Reviewing Your Service Agreement?
Help Alliance provides NDIS support coordination, daily living assistance, and support worker services across Joondalup, Stirling, and Wanneroo. Our team can help you understand what to look for in a service agreement and connect you with quality providers.