Disclaimer: This article is for general informational purposes only and does not constitute legal, financial, or tax advice. NDIS rules, ATO rulings, and Commission requirements change regularly. Before making decisions about your business structure, GST obligations, or compliance setup, speak with a registered accountant, tax agent, or legal adviser who understands the NDIS sector. Nothing in this article creates any liability for Tether or its authors if your circumstances differ from those described here.
Independent support work is growing fast, and more workers are stepping out on their own — setting their own rates, choosing their own participants, keeping the margin that would otherwise go to an agency. Most people make that call because the work itself is good. What they underestimate is the admin.
What I've noticed building Tether is that the mistakes aren't random. The same three or four things catch people out repeatedly: GST applied incorrectly, invoicing sent to the wrong place, records stored somewhere that evaporates when they need it, screening clearances that lapse quietly in the background. None of it is hard to get right — it just needs to be set up properly once. Including, specifically, whether sole traders need to charge GST on NDIS services, which turns out to be more conditional than most guides suggest.
This isn't a generic sole trader guide. Everything here is NDIS-specific.
Quick answer
As an NDIS sole trader, you need: an ABN (free, via abr.gov.au), a service agreement with each participant, confirmation that your supports are GST-free (most are, but it's conditional), a record-keeping system that keeps everything for 7+ years, and a worker screening clearance (strongly recommended). That's the setup. Do it once and the recurring admin disappears.
Registered vs. unregistered provider — which are you?
This decision matters because it determines who you can work with and what compliance obligations apply to you.
- Unregistered means you haven't gone through the NDIS Commission's registration process. You can work with self-managed participants and plan-managed participants — that covers the majority of independent support work.
- Registered is required for NDIA-managed participants, and for certain specific supports: Specialist Disability Accommodation (SDA), specialist behaviour support, and services involving regulated restrictive practices. From 1 July 2026, Supported Independent Living (SIL) providers also require registration.
For most sole traders starting out with self-managed and plan-managed participants, unregistered is the right path. Registration adds audit cycles, cost, and ongoing compliance overhead — it only pays off once you specifically need NDIA-managed work.
The thing most people miss: unregistered doesn't mean unregulated. The NDIS Code of Conduct applies to you regardless. So do the record-keeping rules. You can't opt out of compliance by skipping registration — you just have fewer formal audit obligations. More detail at the NDIS Commission's registration page.
Quick comparison: registered vs. unregistered providers
| Capability | Unregistered | Registered |
|---|---|---|
| Work with self-managed participants | ✅ Yes | ✅ Yes |
| Work with plan-managed participants | ✅ Yes | ✅ Yes |
| Work with NDIA-managed participants | ❌ No | ✅ Yes |
| Deliver SDA or behaviour support | ❌ No | ✅ Yes (with specific requirements) |
| Worker screening legally required | ❌ No | ✅ Yes |
| Audits & compliance reporting | ❌ Light | ✅ Full |
| Best for | Self-managed / plan-managed only | All participant types |
For most sole traders starting out: Unregistered is the right path if you're working only with self-managed and plan-managed participants.
ABN setup — why you need one and what to do with it
No ABN, no invoice. This one's straightforward.
Apply for free at abr.gov.au. Most applications process instantly, though if the ATO needs to verify something it can take up to 28 days — worth knowing if you've got a participant ready to start and you're cutting it close.
As a sole trader you trade under your own name and ABN. No company structure needed. Every NDIS invoice you issue must include it — the full invoicing requirements are at ndis.gov.au.
What must be on an NDIS invoice
Every invoice you issue must include:
- ABN — your Australian Business Number
- Service description — what support was provided
- Date(s) of service — when the work happened
- Hours worked — the duration
- Rate charged — the hourly or fixed rate
- Total amount — the final invoice total
Missing any of these makes the invoice non-compliant — and you can't claim it.
GST and NDIS — do your supports qualify as GST-free?
This is the one I see wrong most often, and the one where other guides are either incomplete or just incorrect.
What makes an NDIS support GST-free?
An NDIS support is GST-free only when all three of these conditions are met:
- In the plan: The support is specified in the participant's NDIS plan as "reasonable and necessary"
- Written agreement: There is a written agreement between you and the participant (or their plan manager) that identifies them and states the support is part of their plan
- Listed service: The support is of a kind listed in the NDIS Determination 2021
If any one of these is missing, the GST-free status doesn't apply — even if the other two are in place.
That second condition is where people get unstuck. No service agreement means no written agreement means you may not meet the GST-free conditions — even for a support that would otherwise qualify. This is why the service agreement section below isn't just admin housekeeping.
Common support types — personal care, daily living assistance, community access, household tasks — are all listed in the Determination. You can check the full list and use the ATO's decision tool at ato.gov.au/ndis.
Two mistakes I see regularly:
- Adding GST when it shouldn't be there — overcharging the participant, creating a reconciliation problem for their plan manager, and still being legally required to remit that GST to the ATO unless you correct the invoice and refund them.
- Registering for GST unnecessarily — taking on quarterly BAS obligations for no real benefit.
On the threshold: GST registration is required once your total business income hits $75,000/year. Above that, eligible NDIS supports stay GST-free — registration changes your reporting obligations, not whether GST applies to those specific supports. Get your own accountant to confirm this for your situation before you act on it.
NDIS service agreement — what it must contain
A service agreement is the written understanding between you and a participant. It's not legally mandated for most support types under NDIS rules — but given that it's a prerequisite for GST-free treatment under ATO rules, treating it as optional is a false economy.
The NDIS recommends service agreements for all providers. Their guidance is at ndis.gov.au.
At minimum, yours should cover:
- The supports you'll provide and how often
- Your rates, including weekends and public holidays
- Cancellation terms (this one matters — cancelled shifts are where disputes happen)
- Who receives invoices: the participant directly, or their plan manager
- How either party ends the arrangement
- How the participant raises a complaint
Keep a signed copy for every participant. It's part of the records you're legally required to hold for seven years. I've seen workers store these as loose PDFs across three email addresses and a phone — it works until someone asks for a record from 2021.
How to invoice NDIS participants — self-managed vs. plan-managed
How you get paid depends entirely on how the participant's plan is managed. Get this wrong and invoices bounce, payments stall, and you spend time chasing what's already yours.
Self-managed participant. The participant (or their nominee) manages their own NDIS budget and pays providers directly.
- Invoice goes straight to the participant
- They pay you — usually bank transfer — and claim the reimbursement from the NDIS themselves
- Your invoice still needs to meet NDIS requirements: ABN, support description, hours, rate, total
Plan-managed participant. A registered plan manager holds their funds and pays providers on the participant's behalf.
- Invoice goes to the plan manager, not the participant
- The plan manager processes the claim and pays you, typically within five business days though this varies
- The participant's budget is debited by the plan manager
A worked example. Kerry has two participants starting the same week. Marcus is self-managed — his invoice goes to his email, he pays her directly. Priya is plan-managed — the same invoice goes to her plan management company instead. Same format, different recipient. The only thing that actually needs to differ is where you send it, and that should be locked against each client's profile so you're not remembering it on a Friday afternoon.
Record keeping — minimum retention periods
You must keep these records retrievable on demand:
| Record type | Minimum retention | Special rule |
|---|---|---|
| Service agreements | 7 years from creation or last service date, whichever is later | — |
| Invoices | 7 years from creation or last service date, whichever is later | — |
| Progress notes | 7 years from creation or last service date, whichever is later | Until age 25 for child participants |
Key point: "Last service date" means a note from 2020 for a participant you still support in 2026 must be kept well past 2027 — the clock doesn't start until the last session.
Child participants rule: If you work with anyone under 18, records must be kept until they turn 25 — this overrides the 7-year rule entirely.
More detail from the Commission at ndis.gov.au/record-keeping.
What "kept" actually means: retrievable on request. A folder of photos of handwritten notes on your phone that you can't export cleanly is not a defensible record system. Every session you deliver should produce a contemporaneous, timestamped record stored somewhere you can get it out of on demand.
Worker screening — legally required if registered, strongly recommended if not
This is an area where the rules are genuinely different depending on your status, and it's worth being precise.
For registered sole traders: You legally must hold a valid NDIS Worker Screening Clearance before delivering supports. You're considered both a worker and key personnel simultaneously, and you must have the clearance in place.
For unregistered sole traders: It's not legally required, but the NDIS Commission strongly recommends it, and the practical reality is that many self-managed and plan-managed participants will simply ask for it before engaging you. "I'm unregistered so I don't need one" is technically correct and practically a barrier.
My position on it: just get the clearance. It takes the same amount of effort either way, and not having one closes doors with participants and their families that you don't want closed.
Full process for sole traders at the NDIS Commission's worker screening page.
What to know about the clearance:
- Valid for up to five years from issue date
- Renewal window opens 90 days before expiry — don't wait until it lapses, there's no grace period and you'd have to stop work immediately
- Nationally recognised — no need to reapply if you move states
- As a sole trader you're both the "worker" and the "employer" in the application process, which trips people up; the Commission's page walks through how to handle both sides
Setting your rate
Your rate is your call — but it sits inside the NDIS price limits and needs to account for costs that an agency would cover on your behalf: superannuation, leave entitlements, insurance, and the admin time you now spend on things like invoicing and record-keeping. A lot of sole traders set a rate and discover six months in that they've underpriced themselves once those real costs are visible.
The full picture — NDIS price limits, SCHADS Award minimums, how weekend and public holiday penalties layer in — is in our dedicated guide on NDIS support worker pay rates. Read that before you set a number.
Where Tether fits
Everything above is setup — it's a one-time cost of getting it right. What eats time every week is the recurring admin: writing up notes from memory at the end of a long day, building invoices manually, sending plan manager emails, keeping records retrievable for seven-plus years.
Once your ABN and service agreements are in place, Tether handles that recurring layer. Session notes are captured by voice or text at the participant's location — start time, end time, and location attached automatically — and they generate the billing item directly. Each client has their own billing code and management type configured, so the right invoice goes to the right place without you deciding: Xero and out to the plan manager on approval, or formatted for a self-managed participant. Records export as timestamped PDFs or CSVs whenever an audit needs them.
What used to take an hour most evenings takes under two minutes. At $12.99/month, it's the first tool that actually earns its place in an independent support worker's workflow.
Your setup checklist
Work through this once:
- Decide registered vs. unregistered — for most sole traders working with self-managed and plan-managed participants, unregistered is the right starting point.
- Get your ABN — free at abr.gov.au. Allow up to 28 days if you're cutting it close to a start date.
- Check your GST position — confirm your specific supports are in the NDIS Determination at ato.gov.au/ndis, then get an accountant to confirm.
- Draft a service agreement template — covers supports, rates, cancellation, complaints, and is also a prerequisite for GST-free treatment.
- Set up invoicing that distinguishes self-managed from plan-managed participants, locked against each client profile so you're not deciding it from memory.
- Set up record-keeping that retains everything for the required period and lets you export on demand — minimum seven years, or until age 25 for child participants.
- Get your NDIS Worker Screening Clearance — legally required if registered, strongly recommended regardless.
- Set your rate using the price limits and your actual overheads, not a guess.
FAQ
Do I need to register with the NDIS Commission as a sole trader? Not if you're working with self-managed and plan-managed participants. Registration is required for NDIA-managed participants and certain support types — SDA, specialist behaviour support, and from 1 July 2026, SIL. More at ndiscommission.gov.au.
Do I need an ABN to work as an NDIS sole trader? Yes. No ABN, no compliant invoice. Free to apply at abr.gov.au.
Do I charge GST on NDIS services? It depends on whether three conditions are met: the support is in the participant's plan, there's a written agreement in place, and the support type is listed in the NDIS Determination 2021. Most common supports do qualify, but it's not automatic. Check at ato.gov.au/ndis and confirm with an accountant.
How do I invoice a self-managed NDIS participant? Send the invoice directly to the participant or their nominee. Include your ABN, support description, date(s), hours, rate, and total. They pay you and claim reimbursement from the NDIS themselves.
How do I invoice through a plan manager? Send the invoice to the plan manager, not the participant. They process the claim and pay you from the participant's budget.
What records do I need to keep as a sole trader NDIS worker? Service agreements, invoices, and progress notes — minimum seven years from creation or last service date, whichever is later. For child participants, until they turn 25. More at ndis.gov.au/record-keeping.
Do I need an NDIS service agreement with each participant? Strongly recommended for all participants — and a legal prerequisite for GST-free treatment under ATO rules. For SDA it's mandatory. A signed agreement protects both sides and is part of your required records.
Do I need an NDIS worker screening check as a sole trader? If registered, yes — legally required. If unregistered, not legally mandatory, but strongly recommended by the Commission and practically expected by most participants. Full process at ndiscommission.gov.au/workforce/worker-screening.
What's the GST registration threshold? $75,000/year in total business income. Above that, eligible NDIS supports remain GST-free — the threshold affects your reporting obligations, not whether GST applies to qualifying supports.
What's the difference between a registered and unregistered NDIS provider? Registered providers can access NDIA-managed participants and deliver certain regulated support types, but carry audit and ongoing compliance obligations. Unregistered providers work with self-managed and plan-managed participants and are still bound by the Code of Conduct and record-keeping rules. More at ndiscommission.gov.au.
A note on accuracy: The information here reflects NDIS Commission guidance and ATO rulings as at June 2026. Rules change, and links go stale. Always verify compliance details directly with the NDIS Commission or the ATO before acting on them.