GST and NDIS Service Providers
The supply of services to a NDIS participant is GST-free if all the following requirements are met:
- the NDIS participant has a NDIS plan in effect
- the supply is of reasonable and necessary supports that are specified in the statement of supports in the participant’s NDIS plan
- there is a written agreement between you and the NDIS participant (or another person)
- it is a supply covered by one of the tables in the A New Tax System (Goods and Services Tax) (GST free Supply—National Disability Insurance Scheme Supports) Determination 2021External Link (NDIS Determination).
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.
A supply covered by the Disability Services Minister’s Determination
For the supply to be GST-free, as well as meeting the other 3 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 2021 but before 1 July 2025.
The NDIS Determination has 2 tables:
- The table in subsection 6(1) – supplies of supports that are GST-free (Table 1).
- The table in subsection 6(2) – supplies of supports that are GST-free if they are listed in other determinations (Table 2).
If your supply is covered by an item listed in Table 1, the requirement to be covered by the NDIS Determination is satisfied.
If Table 1 doesn’t apply, you can consider Table 2. When an item in Table 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 3 other determinations.
The supplies covered by Table 1 of the NDIS Determination are:
- specialist disability accommodation and accommodation or tenancy assistance (the National Disability Insurance Scheme (Specialist Disability Accommodation) Rules 2020External 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.
If your supply is not covered by Table 1, the supply is only covered by the NDIS Determination if it is both:
- listed in Table 2
- listed in any one of 3 other determinations
- Schedule 1 to the GST-free Supply (Care) Determination 2017External Link (Care Determination)
- Section 6 of the A New Tax System (Goods and Services Tax) (GST-free Supply–Residential Care–Government Funded Supplier) Determination 2015External Link (Residential Care Determination), or
- Sections 6 or 7 of the GST-free Supply (Health Services) Determination 2017External Link (Health Services Determination).
The supplies listed in Table 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.