NDIS and home care providers face a few tax and bookkeeping issues that most businesses do not, mainly around GST, which supports and services are GST-free, tracking funding and participant plans, and paying support workers correctly. Get the systems right early and compliance becomes simple. Here is a plain-English overview for providers.
Is NDIS work GST-free?
Many supports delivered to an NDIS participant are GST-free, but not automatically. Broadly, a support is GST-free when the participant has a current NDIS plan, the support is a reasonable and necessary support specified in that plan, there is a written agreement with the participant (or their representative), and the support is of a kind covered by the NDIS GST-free supports determination. If any one of those is missing, GST applies, even for an NDIS participant. Because the treatment varies by support type, it is worth confirming your service mix with your accountant so your invoices and BAS are right.
Bookkeeping that keeps you audit-ready
Good systems matter in this sector:
- Track income by participant and funding type so you can reconcile against plans and claims.
- Separate GST-free and taxable income clearly, so your BAS is correct.
- Keep service agreements, timesheets and invoices organised, since funding bodies and the ATO both value clean records.
Paying your support workers correctly
Whether your workers are employees or contractors affects super, PAYG withholding and insurance. Misclassifying a worker is a common and costly error. Support workers are usually employees, which means you must withhold PAYG, pay 12% super, and meet award pay rates. From 1 July 2026, Payday Super also requires super to be paid at the same time as wages, so your payroll systems need to keep pace.
How MS Financial Services can help
We work with NDIS and home care providers on GST treatment, payroll and clean, claim-ready bookkeeping. See our Accounting & Bookkeeping service or get in touch.
Frequently Asked Questions
Are NDIS services GST-free?
Many are, but not all. A support is generally GST-free where the participant has a current plan, the support is a reasonable and necessary support specified in that plan, there is a written agreement, and it is covered by the NDIS determination. If any condition is missing, GST applies.
Do NDIS providers need to register for GST?
Once turnover reaches $75,000 you must register, even if much of your income is GST-free. Registration lets you claim GST credits on your business purchases.
Are support workers employees or contractors?
Usually employees, which means PAYG withholding, 12% super and award pay rates. Misclassifying workers is a common, costly mistake, so it is worth checking.
What records should NDIS providers keep?
Service agreements, timesheets, invoices, and income tracked by participant and funding type, with GST-free and taxable income clearly separated for your BAS.
Does Payday Super affect me?
Yes. From 1 July 2026 employers must pay super at the same time as wages, so support-worker payroll needs to be set up for it.