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  • National Disability Insurance Scheme

    If you are a supplier of disability supports and registered for GST, your supplies to a National Disability Insurance Scheme (NDIS) participant may be GST-free.

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    If you make a mix of taxable and GST-free supplies, you may need to review your accounting systems to ensure the correct GST treatment of your supplies.

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    GST-free NDIS supplies

    A supply to a NDIS participant is GST-free if:

    NDIS plan is in effect

    The participant's NDIS plan must be in effect under section 37 of the National Disability Insurance Scheme Act 2013 (NDIS Act), which means it must be approved by the National Disability Insurance Agency (NDIA).

    The plan ceases to be effective when it is replaced by another plan, or when the NDIS participant ceases to be a participant in the NDIS.

    Reasonable and necessary supports

    The supply must be of one or more reasonable and necessary supports, as defined in the participant's NDIS plan.

    Where the participant’s NDIS plan specifies an amount such as time or quantity of reasonable and necessary supports, any supplies of supports in excess of these specifications will not be a GST-free NDIS supply.

    Made under a written agreement

    There must be made a written agreement between you, the supplier, and the NDIS participant (or another person).

    The written agreement must:

    • identify the NDIS participant
    • state that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of the NDIS Act, in the participant’s NDIS plan.

    The written agreement can be between you and a person other than the NDIS participant. Other people can include those who manage the plan and funding for the NDIS participant. This would include the NDIA, a plan management provider registered with NDIA, or a guardian or relative of the NDIS participant.

    The written agreement may be a single document or a combination of documents, such as letters between you and the other party and receipts or invoices you issue. It may include documents in electronic form.

    As long as you have written evidence of a legally binding obligation for you to make the supply to the NDIS participant and that it is a reasonable and necessary support as specified in the participant’s NDIS plan, the requirement for a written agreement is satisfied.

    Example: Supply made under a written agreement in accordance with a self-managed participant's NDIS plan

    Joe, a participant in the NDIS, has a NDIS plan that specifies that he requires five hours of support on a weekly basis. He requests XYZ Co to supply him with the support for a period of three months based on the NDIS published price. Joe provides XYZ with a letter identifying:

    • that he is a NDIS participant
    • the type of support he is to be provided with (as specified in his plan)
    • that the support is one of the reasonable and necessary supports specified in Joe’s NDIS plan.

    XYZ writes to Joe to confirm its agreement to provide the support including the start date and signs the letter. For the next three months, XYZ supplies Joe with the requested supports.

    If all the other requirements for GST-free NDIS supplies are met, these supplies that XYZ makes to Joe are GST-free.

    End of example

    Example: Supply made under a written agreement in accordance with a participant’s NDIS plan managed by a plan management provider registered with the NDIA

    ABB Co is registered with the NDIA as a plan management provider. A number of NDIS participants have engaged ABB to manage their plans for them.

    Thanh, a NDIS participant, would like Elite, a provider of disability supports, to deliver one of the reasonable and necessary supports in her plan. With Thanh's consent, ABB emails Elite with Thanh's relevant requirements, including her name and the number of hours of support needed as specified in her plan. The email also states that the support is one of the reasonable and necessary supports specified in Thanh’s NDIS plan. Elite writes to Thanh and ABB setting out the details of the support to be provided and the price to be paid, but makes no reference to Thanh's plan. ABB replies in writing to confirm Thanh's agreement to receive the supports from Elite.

    The written agreement requirement is satisfied by the written evidence provided by the combination of ABB’s email setting out the supports required, Elite’s letter confirming support arrangements and ABB's letter of acceptance.

    If all the other requirements for GST-free NDIS supplies are met, these supplies Elite makes to Thanh are GST-free.

    Note: Neither Elite's letter or ABB's letter of acceptance would be sufficient evidence of the written agreement requirement. This is because these two documents do not state that the supply is of a reasonable and necessary support as specified in Thanh's plan. ABB’s initial email on its own is also not sufficient evidence of the written agreement because it does not evidence a binding obligation on Elite to make the supplies to Thanh. It is only the combination of the three documents that provide sufficient evidence of the written agreement requirement.

    End of example

    A supply covered by the Disability Services Minister’s Determination

    For the supply to be GST-free, your supply to the NDIS participant must be of a kind covered by the Disability Services Minister's Determination. The Determination applies to supplies made on or after 1 July 2017 but before 1 July 2021.

    The supplies covered by the Disability Services Minister’s Determination are:

    • Specialist Disability Accommodation and accommodation / tenancy assistance (the National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2016External Link sets out the requirements that must be met to supply Specialist Disability Accommodation)
    • assistance in coordinating or managing life stages, transitions and supports, including daily tasks in a group or shared living arrangement
    • household tasks
    • assistance to integrate into school or other educational program
    • assistance with and training in travel, transport arrangements, excluding taxi fares
    • assistance to access and maintain education and employment
    • assistive equipment for recreation (sale or hire)
    • early intervention supports for early childhood
    • management of funding for supports in a participant’s NDIS plan
    • assistance with daily personal activities (see notes). Examples of supplies covered include
      • home help
      • personal care
      • home maintenance
      • medication management
      • continence management
      • training in use of aids and appliances
       
    • specialised assessment and development of daily living and life skills, including community participation (see notes). Examples of supplies covered include
      • counselling
      • training in use of aids and appliances
      • day care
      • assessment of person’s care needs
      • individual care planning or case management
      • social activities in a residential care setting
      • recreational therapy in a residential care setting
       
    • assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training (see notes). Examples of supplies covered by notes include
      • basic equipment for social support (sale or hire)
      • provision and monitoring of personal alert systems (sale or hire)
      • assessment of person’s care needs
      • training in use of aids and appliances
      • goods to assist with toileting and incontinence management in a residential care setting (sale or hire)
      • furnishings in a residential care setting (sale or hire)
       
    • Behavioural support and therapeutic supports (see notes). Examples of supplies covered include
      • counselling
      • personal care
      • community paramedical services
      • individual care planning or case management
      • treatment and procedures in a residential care setting
      • support for people with a cognitive impairment in a residential care setting
      • emotional support in a residential care setting
      • rehabilitation support in a residential care setting
       
    • home modifications (see notes). Examples of supplies covered are home modifications that assists a person to remain living at home.

    Notes

    These services are only GST-free if it is a supply of a kind listed in:

    • Schedule 1 to the GST-free Supply (Care) Determination 2017
    • Section 6 of the A New Tax System (Goods and Services Tax) (GST-free Supply—Residential Care—Government Funded Supplier) Determination 2015, or
    • Sections 6 or 7 of the GST-free Supply (Health Services) Determination 2017.

    The most common examples of supplies in these Determinations have been shown below each of the relevant services covered by the Disability Services Minister's Determination.

    See also:

      Last modified: 01 Apr 2019QC 16263