NDIS Service Agreements: What to Look for Before You Sign

What a service agreement actually is

A service agreement is the contract between you and your NDIS provider. It spells out what supports you'll get, what they'll cost, how long the arrangement runs, and what happens if things go wrong. The NDIS Act doesn't legally require a written agreement, but honestly — you want one. Most decent providers will insist on one anyway. 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 can trap you. Whether you're signing with a registered or unregistered NDIS provider, the same principles apply.

What should be in every service agreement

The NDIS Practice Standards say every agreement should cover these eight things:

• Names and contact details of both you and the provider.
• A clear description of supports — exactly what's being provided. "Support worker services" is too vague. "Personal care: showering, dressing, meal prep, 2 hours daily, Monday to Friday" — that's clear. We've seen vague descriptions cause genuine disputes down the track.
• Costs — the hourly rate or total cost, and how it lines up with the NDIS Price Guide. For plan-managed participants, the rate can't exceed the Price Guide.
• Schedule — which days, what times, how often. "As needed" is not a schedule.
• Duration — how long does this agreement run? Is it ongoing or fixed-term (say 12 months)? Does it auto-renew?
• Cancellation policy — how much notice is needed, 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). This must be stated.
• Complaints process — how to make a complaint, who handles it, and how quickly you'll hear back.
• Termination terms — how either side can end the agreement, and how much notice is needed.

Stuff that should never be in there

Some providers sneak terms into agreements that are unfair, unreasonable, or outright not allowed. Watch for these:

• Excessive notice periods — 14 to 30 days is standard. If a provider wants 3 months' notice to terminate, that's a red flag. Anything beyond 30 days should make you pause.
• Exit fees — a provider cannot charge you a penalty for leaving. This is prohibited under NDIS rules. If you see an exit fee, don't sign. Just don't.
• Tying you to their ecosystem — an agreement that says you can only use supports from one organisation, or restricts your choice of other providers, is anti-competitive and likely unlawful.
• Charging above the Price Guide — plan-managed participants can't 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 carefully.
• Blanket consent clauses — "The provider may share participant information with any third party" is far too broad. Consent should be specific: who, what, and why.
• No cancellation policy at all — if the agreement is silent on cancellations, the provider might assume they can charge for any missed session, even with proper notice. Make sure cancellation terms are spelled out.

Before you sign: the quick checklist

Run through these nine questions:

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 explanation.

How to end a service agreement

You have the right to end a service agreement any time by giving the notice specified in the agreement — or reasonable notice if none is specified. The provider must respect this. They can't lock you in. Give notice in writing (email works) and keep a copy. If the provider pushes back or refuses, contact the NDIS Commission.

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

How we can help before you sign

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

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

This is a free service — it's part of what your plan manager is paid to do at $104.45 a month, funded by the NDIS. Please send agreements over before you sign anything. We want to catch the problems before they become your problems. Once signed, we'll also handle all the NDIS invoice processing under that agreement.