How to Run a Successful NDIS Business in Australia – Compliance, Financial Management & Trinity’s Expert Support
What Is the NDIS and Who Can Be a Provider?
The National Disability Insurance Scheme (NDIS) is a government-funded program supporting Australians with permanent and significant disabilities. It allows participants to choose their own service providers, creating a large and growing market for businesses that deliver disability support services.
NDIS services span a wide range of support categories, including personal care, therapy, cleaning and gardening, transport, support coordination, plan management, community access, assistive technology, and accommodation.
Types of Providers
- Registered providers: Can work with all NDIS participants, including those whose plans are managed by the National Disability Insurance Agency (NDIA). Registration involves audits and compliance with the NDIS Practice Standards.
- Unregistered providers: Can only work with self-managed and plan-managed participants. Fewer compliance obligations, but a smaller pool of accessible participants.
At Trinity Accounting Practice, we support NDIS providers at every stage, from initial setup through to scaling a multi-service operation. We understand the unique financial, compliance, and reporting requirements of this sector.
How to Set Up an NDIS Business in Australia
Choose a Business Structure
Your business structure affects your tax obligations, personal liability, and credibility with participants and support coordinators:
- Sole trader: Simple and affordable to set up, but carries unlimited personal liability
- Company: Provides limited liability and professional credibility, which is often preferred by NDIS participants and plan managers. Flat tax rate of 25% for base rate entities.
- Trust: Used for tax planning, flexible income distribution, and asset protection
- Partnership: Suitable for co-owners or spouses operating a joint venture
Our business advisory team will assess your goals and recommend the most suitable structure. As registered ASIC agents, we handle company and trust formations, ABN registration, and ongoing compliance obligations.
Register for ABN and GST
You must apply for an Australian Business Number (ABN) before you can invoice for NDIS services. GST registration is required once your annual turnover exceeds or is expected to exceed $75,000. Given the volume of NDIS service delivery, many providers reach this threshold relatively quickly.
NDIS Provider Registration and Compliance
Should You Register?
Registered providers can serve all NDIS participants, including those with NDIA-managed plans (the largest participant group). Registration involves meeting higher standards, including independent audits, but significantly expands your potential client base.
Steps to Register
- Submit your application through the NDIS Commission portal
- Complete a self-assessment against the relevant NDIS Practice Standards
- Engage a registered auditor to conduct either a verification or certification audit (depending on the registration groups you are applying for)
- Await approval from the NDIS Quality and Safeguards Commission
Ongoing Compliance
Once registered, you must maintain compliance on an ongoing basis. This includes:
- Adhering to the NDIS Code of Conduct at all times
- Meeting the NDIS Practice Standards relevant to your registration groups
- Maintaining detailed participant records, service agreements, and support plans
- Reporting incidents, complaints, and allegations of abuse or neglect through the required channels
- Ensuring all workers have current NDIS Worker Screening Checks and any required qualifications
- Undergoing periodic re-audits as required by the NDIS Commission
Tax-Deductible Expenses for NDIS Providers
NDIS businesses incur a wide range of expenses, many of which are tax-deductible. Accurate record keeping throughout the year is essential for maximising deductions and maintaining compliance with both tax obligations and NDIS requirements.
Staffing Costs
- Wages and salaries for support workers, coordinators, and administration staff
- Superannuation contributions (11.5% for 2024-25)
- Workers compensation insurance premiums
- Payroll tax (applicable once total wages exceed the state threshold)
- Staff training, onboarding, and professional development
Motor Vehicle and Travel
- Fuel, servicing, and repairs
- Registration and insurance
- Parking and tolls
- Business-use logbook to establish the deductible percentage
Many NDIS providers travel extensively between client locations. Maintaining a valid logbook is essential for claiming the correct proportion of vehicle expenses.
Office and Administration
- Commercial rent or home office expenses (calculated using an appropriate method)
- Phone and internet (business-use portion)
- Stationery, printing, and office supplies
- Laptops, tablets, and software subscriptions
Professional Fees
- Accounting and tax agent fees
- NDIS registration consultants and auditors
- Human resources and legal advisory services
Insurance
- Public liability insurance
- Professional indemnity insurance
- Cyber security and data protection insurance (increasingly important given the sensitive personal information NDIS providers handle)
Marketing and Branding
- Website design, hosting, and search engine optimisation
- Social media advertising and online directories
- Printed materials including brochures, flyers, and business cards
Software and Subscriptions
- NDIS-specific platforms for plan management, rostering, and service delivery tracking
- Accounting software (we recommend Xero for NDIS providers)
- CRM and client management tools
Individual items costing less than $20,000 can be claimed immediately under the instant asset write-off for the 2024-25 financial year. We categorise and record all your expenses to ensure your deductions are optimised.
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Bookkeeping and Payroll for NDIS Providers
Why Bookkeeping Matters
Accurate bookkeeping is not optional for NDIS providers. It is required by the NDIS Commission, supports accurate tax and BAS lodgement, tracks funding utilisation and service delivery, and keeps wages and contractor payments compliant with award requirements.
As certified Xero advisors, we set up and manage Xero accounts for NDIS providers, integrating with your NDIS management software for seamless data flow. This covers payroll and timesheets, invoicing and claims, superannuation, GST and BAS, and bank reconciliations.
Payroll and the SCHADS Award
Most NDIS support workers are covered by the Social, Community, Home Care and Disability Services (SCHADS) Industry Award. This is one of the most complex awards in Australia, with specific provisions for:
- Classification levels based on qualifications and responsibilities
- Shift penalties for evenings, weekends, public holidays, and sleepovers
- Broken shift allowances and travel time between clients
- Minimum engagement periods for casual and part-time employees
Getting SCHADS payroll wrong can result in significant underpayment claims and penalties. We build award-compliant payroll systems, integrate timesheets, lodge STP with every pay run, and ensure superannuation is paid on time each quarter.
Tax Obligations for NDIS Providers
BAS Lodgement
NDIS providers registered for GST must lodge BAS monthly or quarterly. BAS includes GST collected on NDIS service invoices, GST credits claimed on business purchases, and PAYG withholding amounts for employees.
Income Tax by Structure
- Sole traders: Declare business income on your personal tax return, taxed at individual marginal rates
- Companies: Pay a flat rate of 25% for base rate entities (aggregated turnover under $50 million)
- Trusts: Distribute income to beneficiaries who are then taxed at their individual rates
Annual Financials and Reporting
- Companies must lodge annual financial statements and tax returns with ASIC and the tax office
- Plan management providers have additional reporting requirements to the NDIS Commission
- All providers should maintain audit-ready records in case of NDIS Commission or tax office review
Our accounting and taxation team ensures full compliance and audit-readiness across all your obligations.
Risk Management and Record Keeping
NDIS providers must maintain comprehensive records to meet both regulatory and financial requirements. Essential records include:
- Client service logs documenting the support delivered, dates, times, and outcomes
- Signed service agreements and copies of participant NDIS plans
- Staff qualifications, certifications, and NDIS Worker Screening Check clearances
- Incident and complaint reports lodged in accordance with NDIS Commission requirements
- All invoices, payment records, and expense documentation
We help you build secure systems for storing and managing these records, using cloud-based platforms that integrate with your bookkeeping and accounting software.
Common Mistakes to Avoid
- Mixing business and personal bank accounts, which complicates bookkeeping and creates compliance risks
- Failing to register for GST after reaching the $75,000 turnover threshold
- Paying staff under the wrong award or misclassifying SCHADS levels and penalty rates
- Poor receipt and invoice tracking, which leads to lost deductions and audit exposure
- Inaccurate NDIS service claiming that does not match the support actually delivered
- Not engaging an accountant who understands the specific requirements of the NDIS sector
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Growing Your NDIS Business
Once your operations are established and compliant, there are several strategies to grow sustainably:
- Build your profile on NDIS provider directories to increase visibility with participants and support coordinators
- Develop relationships with support coordinators and plan managers who can refer participants to your services
- Offer bundled service packages that combine complementary supports, such as personal care and transport
- Expand into additional NDIS registration groups to broaden the range of services you can offer
- Encourage participant testimonials and reviews to build trust and credibility
- Monitor key performance indicators and cash flow monthly to ensure growth is financially sustainable
- Hire qualified staff strategically to scale your capacity without compromising service quality
For NDIS businesses that need strategic financial oversight, our Virtual CFO division, VCFO Australia, provides budgeting, cash flow forecasting, profit margin analysis, and expansion planning. VCFO Australia has extensive experience supporting not-for-profit organisations and NDIS providers.
If you need finance for vehicles, equipment, or premises to support your growth, our brokerage division, Nexus Wealth Partners, can assist with business lending and equipment finance.
How Trinity Accounting Practice Supports NDIS Providers
We support NDIS providers at every stage with:
- Business setup: Company or trust registration, ABN and GST setup, and structural review for asset protection and tax efficiency
- Bookkeeping and software: Xero setup, training, and integration with your NDIS management platform, plus monthly bank reconciliations
- Payroll and super: SCHADS-compliant pay runs, timesheet integration, superannuation tracking, and STP lodgement
- BAS and tax: Quarterly BAS preparation, annual tax returns, profit and loss reporting, and audit preparation
- Strategic advice: Budgeting, expansion planning, profit margin analysis, and support with funding applications
Book a consultation with our team to discuss how we can support your NDIS business.
Trinity Accounting Practice
Accounting Firm in Beverly Hills, Sydney
Phone: 02 9543 6804
Address: 159 Stoney Creek Road, Beverly Hills NSW 2209
Website: www.trinitygroup.com.au
Weekend and after-hours appointments available
Our Virtual CFO division, VCFO Australia, provides strategic financial management, budgeting, forecasting, and compliance support for growing businesses and not-for-profits.
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Our mortgage brokerage division, Nexus Wealth Partners Pty Ltd, assists clients with home loans, refinancing, and business finance.
Disclaimer: Information provided on this website is intended as a general overview only and does not replace professional advice tailored to your personal circumstances.
