Since it started in Western Australia in late 2020, the National Disability Insurance Scheme (NDIS) has had significant scrutiny, with final reports on the Royal Commission and a formal review of the scheme delivered in 2023. The Australian Government’s response has included making legislative changes that started on 3 October 2024 that you should know about if you supply goods or services to NDIS participants.
Gudrun Gilles, a consultant with more than 40 years of experience in the disability and human services sector, and a member of our SBDC Enterprise Skills panel via her company The MARQ Group, outlines the key reforms to the NDIS, what they mean for businesses operating in the sector, and gives some practical actions to take to help navigate these changes effectively.
Changes to pricing
In December 2023, the NDIS Code of Conduct was updated to prevent providers from charging more for goods for NDIS participants than non-participants, without a reasonable justification. This applies specifically to goods, such as equipment or supplies, but is also relevant to services. If you’re charging more to NDIS participants without proper reason, it could be seen as failing to uphold the principles of honesty, integrity, and transparency, which could result in penalties.
Tip: Review your pricing structure for goods and services. If you charge different rates for NDIS participants, ensure there is a clear and documented justification. If needed, adjust your fee structure and keep records of your decisions in case of an audit or investigation.
New claims and payment framework
On 3 October 2025 a legislated claims and payments framework will be introduced to address confusion about how claims should be made and when the National Disability Insurance Agency (NDIA) must pay providers. Under this new framework, claims must be lodged within two years of providing supports, with a transition period of 12 months after the law takes effect.
Tip: Audit your accounts to ensure you have claimed all past services you have delivered. Moving forward, make sure your accounting and bookkeeping systems are efficient and able to handle timely claims. Consider implementing automation, as manual claims may soon become outdated. Regularly monitor the time between providing services and lodging claims to minimise delays.
Changes to Provider Registration
The proposed changes to provider registration put forward by the NDIS Provider and Worker Registration Taskforce will affect both new and existing providers. A new system based on four provider categories—advanced, general, self-directed, and basic—is likely to be introduced, pending consultation. This will allow registration to be more responsive to the level of risk associated with the services provided. Some providers, particularly those offering off-the-shelf goods or supporting self-directed participants, may no longer require registration.
A significant change in the proposal is that no distinction will be made between those operating in different environments, whether in-person or online, within an organisation or as a sole provider. The Government has also stated that immediate action is required for the compulsory registration of platform providers, Support Coordinators, and SIL (Supported Independent Living) providers.
Tip: Use a risk-based assessment to identify which provider category your services are likely to align with. Prepare for registration if your business falls into a group that has been newly identified as requiring compulsory registration. Plan for any changes in your compliance requirements well ahead of time of re-registration.
Changes to what NDIS Participants can and can’t spend their funding on
The changes will impact what NDIS Participants can fund under the scheme. If your offerings are not covered by the NDIS or are considered off-the-shelf goods, this could impact your registration requirements. You may not need to be registered to provide services or goods that fall outside the scope of NDIS funding.
Tip: Stay informed about changes to NDIS funding rules by referring to updates.. Regularly review your services, supports, and goods to ensure they are eligible for funding. Adjust your offerings and marketing strategies as necessary, as changes in funding may affect your target market.
Increased Monitoring and Compliance Measures
The NDIS Quality and Safeguards Commission is likely to enhance its monitoring strategies, including unannounced visits to group homes, and introduce more meaningful performance measures. These changes aim to improve provider compliance and ensure better outcomes for participants.
Tip: Strengthen your internal quality management processes. This could include enhancing your internal audit strategies and ensuring you collect and analyse data that demonstrates how your services help participants achieve their goals. Improved quality management will not only help with compliance but also ensure better service delivery.
Moving forward
The NDIS reforms coming into effect over the next year will bring significant changes for businesses providing goods and services to NDIS participants. By understanding the key changes and proactively adjusting your business practices, you can not only ensure compliance but also position your business for success in the evolving NDIS landscape.
Now is the time to review, update, and improve - ensuring your business is ready for the future.
More information
- To learn more about becoming an NDIS provider, read the NDIS for providers publication or book your place in our upcoming Becoming an NDIS Provider workshop
For general information on starting a business, see the starting and growing section of our website or contact our free business advisory service.
