A practical guide for allied health clinics. Covers mandatory clauses, cancellation policies, pricing schedules, and what the NDIS requires before you start delivering services.
A service agreement is the document that sits between you and the participant before any support is delivered. It is not legally required for all NDIS services, but the NDIS Quality and Safeguards Commission strongly recommends them, most plan managers require one before releasing funds, and registered providers are expected to have them under the NDIS Practice Standards.
A good service agreement protects both sides. It sets clear expectations about what will be delivered, how much it will cost, what happens when appointments are cancelled, and how either party can end the arrangement. Most disputes between providers and participants come down to something that was not written clearly in the service agreement.
Service agreements should be reviewed at every plan review and updated whenever the NDIS Price Guide changes (usually 1 July each year). The 2025-26 Price Guide introduced changes to travel claiming (50% rate cap for allied health) and cancellation provisions that may affect your existing agreements.
The full legal name of the provider (the entity, not just the practitioner). ABN. NDIS provider registration number. The full name of the participant. NDIS participant number. If the participant has a nominee or guardian who is signing on their behalf, include their name and the basis of their authority. The plan manager's name and contact details (if applicable). The date the agreement commences and its duration. Most service agreements run for the duration of the participant's NDIS plan, which is typically 12 to 24 months.
A clear, plain-language description of what you will provide. The discipline (occupational therapy, speech pathology, etc.). The type of service: individual therapy, group therapy, assessment, report writing, carer training, telehealth, home visits. The expected frequency and session duration. The delivery location. The NDIS support category and line item code for each service type. Be specific. 'Allied health therapy' is too vague. 'Individual occupational therapy, 60-minute sessions, delivered fortnightly at the clinic, billed under Improved Daily Living (07_004_0118_6_3)' is specific enough for the participant and the plan manager to understand exactly what they are agreeing to.
The hourly rate for each support type you will deliver, clearly referencing the current NDIS Price Guide year. State whether your rates are at the NDIS price limit or below it. If you are an unregistered provider, clearly disclose that your rates may differ from the registered provider price limits and that the participant should confirm with their plan manager. Include any additional charges: travel time (capped at 50% of the hourly rate from 1 July 2025, with metropolitan and regional time limits), non-face-to-face work (report writing, case conferences), short-notice cancellation fees, and group session rates. Every charge that may appear on an invoice should be listed here with its rate.
Update this section after every NDIS Price Guide release. Charging above the price limit as a registered provider is a compliance breach.
This is the most common source of disputes between providers and participants. Be explicit. State the notice period required to cancel without charge. The NDIS allows providers to charge for short-notice cancellations (less than 7 clear days' notice is the NDIS default, but your agreement can specify a shorter period). State the fee that applies: 100% of the agreed service rate is the NDIS maximum, but many providers charge 90% or less. State what counts as a valid exception: hospitalisation, medical emergency, natural disaster. State what happens after repeated no-shows: at what point you will contact the participant to discuss, and at what point you may end the agreement.
The cancellation clause should be one of the clearest sections in the agreement. If the participant is surprised by a cancellation charge, the clause was not clear enough.
What the participant can expect from you. Deliver supports as described and at the agreed times. Maintain current professional registration (AHPRA, ESSA, or relevant body). Comply with the NDIS Practice Standards and the NDIS Code of Conduct. Provide progress reports as required for plan reviews. Communicate changes to scheduling, staffing, or service delivery promptly. Maintain the confidentiality of the participant's information in accordance with the Privacy Act 1988 and the Australian Privacy Principles.
What you need from the participant. Attend scheduled appointments or provide adequate notice for cancellations. Inform the provider of changes to their NDIS plan, plan manager, or support coordinator. Provide relevant information needed for service delivery and reporting. Provide consent for information sharing where required. Treat provider staff with respect (this is a legitimate clause and protects your staff).
How participant information will be collected, stored, used, and shared. Reference the Privacy Act 1988 and the Australian Privacy Principles. State specifically who you may share information with: the NDIA, the participant's plan manager, their support coordinator, other treating practitioners (with consent), and any mandatory reporting obligations. State where data is stored (in Australia, on encrypted systems) and how long records are retained (7 years minimum for health records). If you use AI tools or third-party software that processes participant data, disclose this and confirm that data remains in Australia.
The internal process: who the participant contacts first, how complaints are acknowledged, and the expected resolution timeframe. The external process: if the participant is not satisfied with the internal resolution, they can contact the NDIS Quality and Safeguards Commission on 1800 035 544 or at www.ndiscommission.gov.au. Include both the phone number and the website. The participant should also be informed of their right to contact an NDIS advocate.
How either party can end the agreement. State the notice period required (14 days is common). What happens to any pre-paid funds or unused service credits. The provider's obligation to assist with transition to another provider if requested, including providing relevant reports and records. Circumstances where the agreement may be ended immediately: safety concerns, a significant breach of the agreement by either party, or the participant's NDIS plan ending without renewal.
Signature of the participant (or their nominee or guardian, with their authority stated). Signature of an authorised representative of the provider. Date of signing. Both parties receive a signed copy. If the participant has a plan manager, send them a copy as well. If the participant requires the agreement in an alternative format (Easy Read, translated, large print), provide it. A service agreement the participant cannot understand does not serve its purpose.
Write in plain language
The participant (or their family) needs to understand every clause. If they need a lawyer to read your service agreement, you have written a contract, not an agreement. Use short sentences. Avoid jargon. Write as you would speak to the participant.
Reference the current Price Guide year
NDIS pricing changes on 1 July each year. Make sure your rates align with the current financial year's Price Guide. Include the Price Guide year in the pricing section so it is clear when the rates were set.
Be explicit about cancellation
Short-notice cancellation is the single most common source of disputes between NDIS providers and participants. Write the cancellation clause so clearly that there is no room for misunderstanding. Use a worked example if it helps: 'If your session is on Wednesday and you cancel on Monday, this is less than 2 clear business days' notice and a cancellation fee of $X will apply.'
Review at every plan change
When a participant's plan is reviewed and new goals or funding are set, update the service agreement to reflect the new plan. The supports described in the agreement should match the supports funded in the plan.
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