GST on NDIS Services: When is it Tax-Free?

A common myth is that "Everything NDIS is GST-free." This is wrong. If you are a cleaner or gardener working for an NDIS participant, you might still have to charge GST.

The GST-Free Rules (Section 38-38)

For a supply to be GST-free, it must meet ALL these conditions:
1. The participant has an NDIS plan in effect.
2. The supply is "reasonable and necessary" as specified in their plan.
3. There is a Written Agreement between you and the participant (or their plan manager).

The Written Agreement

The ATO is strict on this. You must have a Service Agreement that identifies the participant and states that the supply is a "reasonable and necessary support." Without this paper trail, your services are technically taxable.

Subcontractors

If you subcontract work to another provider, the supply from the subcontractor to you might be taxable, even if your supply to the participant is GST-free. This "chain" of GST is complex.