Did you know?
The Australian Tax Office requires a written service agreement if the service is GST FREE?
According to the Australian Tax Office, NDIS services and supports are GST FREE if:
- the NDIS participant has an active NDIS plan
- the services or supports supplied are 'reasonable and necessary supports'
- there is a written service agreement between the provider and the NDIS participant (or another person)
- it is a supply covered by one of the tables in schedule 1 and 2 on the NDIS Determination: A New Tax System (Goods and Services Tax) (GST-free Supply—National Disability Insurance Scheme Supports) Determination 2021
NDIS written agreement (according to the ATO)
The ATO states that there must be a written agreement between an NDIS Provider and an NDIS participant (or another person)
The ATO stipulates that the written agreement must:
- identify the NDIS participant
- state that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of the NDIS Act, in the participant’s NDIS plan.
The written agreement can be between an NDIS Provider and a person other than the NDIS participant. E.G Nominee/Guardian/Relative, the NDIA (National Disability Insurance Agency).
The written agreement may be a single document or a combination of documents, such as letters between you and the other party and receipts or invoices you issue. It may include documents in electronic form or video.
As long as you have written (or video) evidence of a legally binding obligation for you to make the supply to the NDIS participant and that it is a reasonable and necessary support as specified in the participant’s NDIS plan, the requirement for a written agreement is satisfied.
Source: ATO website
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