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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.

    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.

    See also:

    GST-free NDIS supplies

    A supply to a NDIS participant is GST-free if all of the following requirements are met:

    1. the NDIS participant has a NDIS plan in effect
    2. the supply is of reasonable and necessary supports that are specified in the statement of supports in the participant's NDIS plan
    3. there is a written agreement between you and the NDIS participant (or another person)
    4. it is a supply covered by one of the schedules in the GST-free Supply (National Disability Insurance Scheme Supports) Determination 2017External Link (NDIS Determination)

    See also:

    1. 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.

    2. 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.

    3. 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 1: 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.

    The written agreement under requirement 3 is satisfied.

    End of example

    Example 2: 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.

    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

    4. A supply covered by the Disability Services Minister’s Determination

    For the supply to be GST-free, as well as meeting the other three requirements outlined above, your supply to the NDIS participant must be of a kind covered by the NDIS Determination. The NDIS Determination applies to supplies made on or after 1 July 2017 but before 1 July 2021.

    The NDIS Determination contains two schedules:

    • Schedule 1 – supplies of supports that are GST-free
    • Schedule 2 – supplies of supports that are GST-free if they are listed in other determinations.

    If your supply is covered by an item listed in Schedule 1, the requirement to be covered by the NDIS Determination is satisfied.

    If Schedule 1 doesn't apply, you can consider Schedule 2. When an item in Schedule 2 is relevant to your supply, the requirement to be covered by the NDIS Determination is only satisfied if the item is also covered by one of three other determinations.

    This is explained further below.

    Schedule 1

    The supplies covered by Schedule 1 of the NDIS Determination are:

    • specialist Disability Accommodation and accommodation or 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 with and training in travel or transport arrangements, excluding taxi fares
    • interpreting and translation
    • assistance to access and maintain education and employment
    • assistive equipment for recreation
    • early intervention supports for early childhood
    • management of funding for supports in a participant’s plan.
    Schedule 2

    If your supply is not covered by Schedule 1, the supply is only covered by the NDIS Determination if it is both:

    The supplies listed in Schedule 2 are:

    • assistance with daily personal activities
    • specialised assessment and development of daily living and life skills, including community participation
    • assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training
    • behavioural support and therapeutic supports
    • home modifications.

    The most common examples of supplies covered by Schedule 2 and any of the other determinations have been shown below in table 1.

    Table 1: Examples of supplies that are both covered by Schedule 2 and one of the three other determinations

    *Schedule 2 item in the NDIS Determination (see note)

    Relevant other determination

    Examples of supplies covered by Schedule 2 and one of the three other determinations

    1. Assistance with daily personal activities

    Care DeterminationExternal Link

    Personal care

    Medication management

    Continence management

    Training in use of aids and appliances

    2. Specialised assessment and development of daily living and life skills, including community participation

    Care DeterminationExternal Link

    Counselling

    Training in use of aids and appliances

    Day care

    Assessment of person’s care needs

    Individual care planning or case management

    2. Specialised assessment and development of daily living and life skills, including community participation

    Residential Care (Government Funded) DeterminationExternal Link

    Social activities in a residential care setting

    Recreational therapy in a residential care setting

    3. Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training

    Care DeterminationExternal Link

    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

    3. Assistive equipment for general tasks and leisure, including assistive technology specialist assessment, set up and training

    Residential Care (Government Funded) DeterminationExternal Link

    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).

    4. Behavioural support and therapeutic supports

    Care DeterminationExternal Link

    Counselling

    Personal care

    Community paramedical services

    Individual care planning or case management

    4. Behavioural support and therapeutic supports

    Residential Care (Government Funded) DeterminationExternal Link

    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

    5. Home modifications

    Care DeterminationExternal Link

    Home modifications which are supplies that assist a person to remain living at home

    Note: Schedule 2 item is within GST-free Supply (National Disability Insurance Scheme Supports) Determination 2017External Link and explanatory statementExternal Link.

    Example: Supply of when exercise physiology is not GST-free

    Bernie, a participant in the NDIS, has a NDIS plan that specifies that he requires exercise physiology on a fortnightly basis. Bernie lives at home and attends Health Co, a clinic (not a hospital), to receive the service and no Medicare benefit is payable for the service.

    The supply of exercise physiology services to Bernie satisfies the first three elements in that:

    • he is an NDIS participant
    • exercise physiology is a reasonable and necessary support specified in his plan
    • there is a written agreement between Bernie and Health Co.

    However, the fourth requirement is not satisfied because the supply of exercise physiology services is not covered by the NDIS Determination. This is because:

    • Schedule 1 of the NDIS Determination does not cover exercise physiology services.
    • Under Schedule 2, item 4 lists behavioural and therapeutic supports which includes exercise physiology but this service is not covered by one of the three other determinations unless it is supplied in a residential care facility. The supply to Bernie is provided at Health Co's clinic.

    However, a supply of exercise physiology services to Bernie can be GST-free, regardless of whether it is made to an NDIS participant, if:

    • there is a Medicare benefit payable for the service made to Bernie (see medical services)
    • the exercise physiology therapy service is supplied as part of GST-free hospital treatment (see hospital treatment).
    End of example
      Last modified: 18 Nov 2019QC 16263