NDIS Support Worker Vehicle Allowances & Mileage Claims: FY 2026 - 2027

Key Takeaways

The SCHADS Award mandates paying support workers a per-kilometer allowance if they use their own vehicle to transport participants.
You can invoice the participant's NDIS plan for provider travel (time and activity cost) only if agreed in advance.
Support workers claiming tax deductions must maintain a compliant logbook or claim up to 5,000 km using the cents-per-km method.

In the NDIS sector, transport is a primary service component. Support workers frequently use their own vehicles to travel to shifts, drive between consecutive participants, or transport clients to appointments. However, tracking and billing these vehicle costs is complex and subject to both SCHADS Award and ATO guidelines. In this guide, we break down NDIS vehicle allowances, participant billing rules, and tax deduction methods for FY 2026 and FY 2027.

1. The SCHADS Award Vehicle Allowance

If you employ support workers under the SCHADS Award and require them to use their personal vehicle for work-related activities (such as driving a client to the supermarket), you must pay them a vehicle allowance. The rate is set per kilometer (usually around $0.99 per km under current award agreements). This payment must be included in the employee's payroll and is generally taxable unless specific exemption criteria apply.

2. Invoicing NDIS Clients for Travel (Provider Travel)

Paying your staff a vehicle allowance is a payroll cost, but how do you recover this from the NDIS? The NDIA allows you to claim for two distinct travel components, subject to caps and participant agreement:

Travel Time: You can claim for the time spent traveling to a participant (up to 30 minutes in metropolitan areas, 60 minutes in regional areas). This is billed at the support's standard hourly rate using the travel suffix code.
Activity Costs (Mileage): If you transport a participant during a shift, or if you travel to a participant and want to recover the vehicle wear-and-tear cost, you can charge an "activity cost" per kilometer. The NDIA sets a recommended limit (e.g., $0.99/km). This must be negotiated and written into the client's service agreement.

3. Support Workers Claiming Personal Tax Deductions

If you are a support worker (whether employed or operating as a sole trader) and you use your personal vehicle for work, you can claim tax deductions on your personal tax return. The ATO offers two methods:

Cents-per-Kilometer Method: For FY 2026 and FY 2027, you can claim a set rate per kilometer (check current ATO thresholds, e.g., $0.85 - $0.88/km) up to a maximum of 5,000 business kilometers per year. You do not need written receipts, but you must be able to show how you calculated your business travel (e.g., diary records).
Logbook Method: You must keep a logbook for a continuous period of at least 12 weeks, tracking all business and private trips to establish a business-use percentage. You must also retain all receipts for fuel, maintenance, insurance, and registration. This method is highly recommended if you drive more than 5,000 business kilometers annually.

⚠️ ATO Warning: You cannot claim deductions for your daily commute from home to your first shift of the day, or from your last shift back home. The ATO classifies this as private travel. Only travel between consecutive clients or trips carrying heavy specialized equipment can be claimed as business travel.

Summary of Billing vs. Payroll

Activity	Payroll (Paid to Worker)	NDIS Invoicing (Billed to Client)
Driving to client's home	Paid if travel is between consecutive shifts.	Billed under "Provider Travel" time if agreed.
Transporting client	Per-km award allowance paid (e.g., $0.99/km).	Billed as "Activity Cost" per-km if in agreement.
Commute home	Not paid.	Cannot bill.

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