GST & NDIS

Written By Christian Halliley

Goods and Services Tax or more commonly referred to as ‘GST’ is a general tax of 10% on most goods and services sold in Australia.

Supports and Services delivered as part of the NDIS are generally GST-free. This means that most goods and services provided under the NDIS are not subject to the 10% GST.

Let’s dive a bit deeper into GST & the NDIS:

1. GST-Free Supplies:

For a support or service to an NDIS participant to qualify as GST-Free, all of the following requirement must apply:

  • Current NDIS Plan - The participant must have an approved NDIS plan in effect. The plan ceases to be effective when it is replaced by another NDIS plan or the participants ceases to be on the NDIS

  • Supplies are reasonable and necessary (R&N) - The support or service must be R&N per the participants plan. Any support or service that exceeds the specifics of a participants NDIS plan are not considered to be a GST-Free NDIS supply

  • Written Agreement - There must be a written agreement between the provider and the NDIS participant. This can include a variety of different sources including letters, receipts or invoices

  • Included in the NDIS Determination Table - After meeting the above 3 requirements, the support/service must be covered by one of the following Tables:(https://www.legislation.gov.au/F2021L00846/latest/text):

    • Table 1 (Services that are GST-Free):

      • Specialist Disability Accommodation (SDA) - There are further requirements for SDA that are required to be met

      • Assistance in coordinating or managing life stages, transitions, support (includes daily tasks) in a group or shared living arrangement)

      • Household Tasks

      • Assistance with training in travel or transport arrangements (excludes taxis)

      • Interpreting and translating

      • Assistance to to access and maintain education and employment

      • Assistive equipment for recreation

      • Early intervention supports for early childhood

      • Management of funding for supports in a participants plan

    • Table 2 :

      If a supply is not covered under Table 1, it may still be GST-Free if it is listed in both Table 2 and well as in one of 3 additional determinations (Care, Residential Care, Health Services).

      The supplies listed in Table 2 include:

      • Assistance with Daily personal activities

      • Daily living and life skills, including community participation

      • Assistive Equipment for general tasks and leisure, set up and training

      • Behavioural support and therapeutic supports

      • Home Mods

2. GST on Supports & Services:

Some goods and services may still attract GST, particularly if they are not specifically disability-related or can be used by the general public. Puchasing goods or services outside of the NDIS may have GST attached from the supplier. There are two important points to note when a support or service attracts GST:

  • Invoicing Systems - It is important that as a provider if you make a mix of taxable and GST-Free supplies, you may need to review your invoicing systems to ensure the correct GST treatment is applied to each support or service

  • PAPL GST inclusive - If GST is applicable, the price limit for supports and services per the NDIS Price Agreement and Pricing Limits (PAPL) is inclusive of GST

3. Provider Obligations:

Providers have an obligation to make sure they are aware of the GST status of the supports they provide as well as the ATO requirements for registering for GST on any non-NDIS funded services they provide. Providers should clearly indicate on their invoices that the service or support they provide is GST-free where applicable.

Key Takeaways:

  • GST is a broad tax of 10% of goods and services provided in Australia

  • Most NDIS supports and services are GST-Free (don’t incur the 10% tax)

  • GST-Free supports and services are to ensure that participants receive the full value of their funding without the additional tax burden

  • There are 4 criteria that must apply to a NDIS support or service to qualify as GST-Free

  • If a support or service is listed under Table 1 of the NDIS Determination and satisfies the other 3 requirements it is automatically GST free

  • If a support or service is listed under Table 2 of the NDIS Determination, satisfies 1 of 3 additional determinations (Care, Residential or Health) and satisfies the other 3 requirement then it will be GST-Free

  • If GST is applicable, the price limit per PAPL is inclusive of GST

  • Ensure invoicing systems can differentiate between GST and Non-GST services and products is important

  • Providers have an obligation to make sure they are aware of the GST status of the supports they provide as well as satisifying ATO requirement for GST

Please note, this information is general in nature and should not be solely relied upon before making a decision regarding GST on NDIS Supports and Services.


For further information please visit the ATO website (https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/gst-and-health/national-disability-insurance-scheme) or alternatively contact Managing Director, Christian Halliley (Chartered Accountant):

E: Christian@adaptplanmanagement.com.au

P: 0416 112 369

Christian Halliley