MUST I charge GST on services to NDIS clients?

When are NDIS services GST-free?

​​If you are an NDIS Service Provider and you are registered for GST, your supplies to NDIS participants are only GST free if the following 4 conditons are met:

1. the NDIS participant has an active NDIS plan
2. your services/support supplied are 'reasonable and necessary supports' and included in their NDIS plan
3. there is a written service agreement between the yourself (the Provider) and the NDIS participant (or another person)
4. your service is listed as a GST FREE supply by the ATO (see the list of GST Free NDIS services below)

What happens if I have both NDIS and non-NDIS clients?

If you have a mic of customer and so deliver a mix of taxable and GST-free services/supports, you need to ensure your accounting system is setup to charge the correct GST for your different customers. 

XERO accounting software can help you do this easily.

See our partnership offer from XERO - MyCareSpace customers receive a free 1 month trial PLUS special discount of 90% off the first 6 months when you sign up to XERO.

What happens if I have charged GST in error?

1. You must remit the GST to the ATO

Even if you charged GST incorrectly, you’re still legally required to pay it to the ATO — unless you fix it and refund the participant.

2. Correct the invoice and issue a refund (if applicable)

If you discover the error, you should:

Issue a corrected tax invoice showing the correct GST treatment (i.e., GST-free)

Refund the overcharged GST amount to the participant or their plan manager (if they paid out of pocket or via plan funds)

3. Adjust your BAS (Business Activity Statement)

You may be able to correct the error in your next BAS by:

Decreasing your GST payable if you refund the overcharged GST

Making a voluntary disclosure if the error was in a previous BAS and over the adjustment threshold

GST Free Supports

Schedules 1 and 2 in the Disability Minister's Determination of GST-Free NDIS services are listed as follows:

Schedule 1​

The following care supports are deemed to be GST-free:

• Specialist disability accommodation (within the meaning of the National Disability Insurance Scheme rules) and accommodation/tenancy assistance
• 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/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

Schedule 2

• 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

Schedule 2 also includes the following supports received by NDIS Participants may be specified under other Determinations (legislation) where they are deemed to be GST-free:

(i)The GST-free Supply (Care) Determination 2017 list these types of care services as GST free services

• Home help
• Personal care
• Home maintenance
• Home modification
• Provision of food
• Provision and delivery of meals at home or at a day care or similar centre
• Respite care
• Transport to and from daycare or similar centres and for shopping trips, social outings and for health-related purposes
• Community paramedical services
• Community Nursing
• Assessment of the person’s care needs
• Referral to other community care services
• Training in the use of aids and appliances and in how to get the most out of the other services mentioned in this Schedule
• Individual care planning or case management
• Provision of basic equipment for social support
• Day care
• Linen services
• Counselling
• Community advocacy for a purpose mentioned in section 81-1 of the Aged Care Act 1997
• Medication management
• Provision and monitoring of personal alert systems
• Provision of therapeutic supplies and services under the program known as the Psychogeriatric Unit Program administered by the Commonwealth
• Continence management

(ii) Clause 6 of the A New Tax System (Goods and Services Tax) (GST free Supply—Residential Care—Government Funded Supplier) Determination 2015; and  

(iii) Clause 4 of the GST-free Supply (Health Services) Determination 2017

Sources:

• A New Tax System (Goods and Services Tax) (GST-free Supply—National Disability Insurance Scheme Supports) Determination 2021
• Australian Tax Office
• Correcting GST Errors