NDIS Service Agreements: What to Look for Before You Sign

What Is an NDIS Service Agreement? Your Contract with Providers Explained

A service agreement is a contract between you (the participant) and your NDIS provider. It sets out what supports will be delivered, at what cost, for how long, and under what terms. While not legally required by the NDIS Act, a written service agreement is best practice — and most providers will insist on one. Once signed, it's binding on both sides.

Across the NDIS's 650,000+ participants and thousands of providers, service agreements are the frontline document of the scheme. A good one protects you. A bad one traps you. Whether you're signing with a registered or unregistered NDIS provider, the same principles apply.

NDIS Service Agreement Requirements: 8 Essential Items Every Contract Must Include

The NDIS Practice Standards say every service agreement should include:

• Names and contact details of both the participant and the provider.
• Description of supports — exactly what will be provided. Be specific. "Support worker services" is vague. "Personal care assistance: showering, dressing, and meal preparation, 2 hours per day, Monday to Friday" is specific.
• Costs — the hourly rate or total cost, and how it aligns with the NDIS Price Guide (if applicable). For plan-managed participants, the rate must not exceed the Price Guide.
• Schedule — when supports will be delivered: days, times, frequency. "As needed" is not a schedule.
• Duration — how long the agreement runs. Is it ongoing? Fixed-term (e.g., 12 months)? Does it auto-renew?
• Cancellation policy — how much notice is required for cancellation, and what fee applies. The NDIS allows providers to charge 100% of the agreed rate for cancellations with less than 2 clear business days' notice (7 days for group supports). The agreement must state this.
• Complaints process — how to make a complaint, who handles it, and expected response times.
• Termination terms — how either party can end the agreement, and how much notice is required.

NDIS Service Agreement Red Flags: 6 Unfair Terms to Watch For

Some providers slip terms into service agreements that are unfair, unreasonable, or outright illegal. Watch for these:

• Excessive notice periods — termination requiring 3 months' notice is excessive. Fourteen to thirty days is standard. Anything beyond 30 days should make you pause.
• Exit fees or cancellation penalties — a provider cannot charge you a penalty for leaving. This is prohibited under NDIS rules. If an agreement mentions an exit fee, don't sign.
• Requiring you to use only their providers — an agreement that says you can only use supports from one organisation, or that restricts your choice of other providers, is anti-competitive and potentially unlawful.
• Charging above the NDIS Price Guide — plan-managed participants cannot be charged above the Price Guide. If a provider tries, your plan manager should flag it. Self-managed participants can negotiate any rate, but read the details carefully.
• Blanket consent clauses — "The provider may share participant information with any third party" is too broad. Consent for information sharing should be specific: who, what, and why.
• No cancellation policy — if the agreement doesn't mention cancellations, the provider might assume the right to charge for any missed session, even with notice. Make sure the cancellation terms are explicit.

NDIS Service Agreement Signing Checklist: 9 Questions Before You Commit

Before you sign, run through this:

1. ☐ Are the supports described specifically enough that you know exactly what you're getting?
2. ☐ Are the costs clear and within the NDIS Price Guide (if plan-managed)?
3. ☐ Is the schedule specific — which days, what times?
4. ☐ Is the cancellation policy stated, and does it match NDIS rules?
5. ☐ Is the termination notice period reasonable (14–30 days)?
6. ☐ Is there any exit fee? (If yes, don't sign.)
7. ☐ Does the agreement restrict your ability to use other providers?
8. ☐ Is the complaints process clear?
9. ☐ Do you understand everything in the agreement? If English isn't your first language, ask for a translation or an explanation.

How to End an NDIS Service Agreement: Your Rights and Notice Periods

You have the right to end a service agreement at any time by giving the notice specified in the agreement (or reasonable notice if none is specified). The provider must respect this — they cannot lock you in. Give notice in writing (email is fine) and keep a copy. If the provider disputes the termination or refuses to release you, contact the NDIS Commission.

If you're switching to a new provider for the same type of support, coordinate the transition. Make sure your new provider is ready to start when the old one finishes, so there's no gap in your supports.

How Your NDIS Plan Manager Can Review Service Agreements Before You Sign

If you're plan-managed, your plan manager can review service agreements before you sign them. They'll check:

• Rates are within the NDIS Price Guide.
• The line items match the supports described.
• There are no unfair terms.
• The agreement aligns with your plan budget.

This is a free service — it's part of what your plan manager is paid to do (at $104.45/month, funded by the NDIS). Don't hesitate to send agreements over for review before you sign anything. Once signed, your plan manager will also handle all NDIS invoice processing under that agreement.