Service agreements that hold up

What a service agreement is

A service agreement is a written arrangement between a provider and a participant that records what supports will be provided, when, at what price, and under what conditions official source (opens in a new tab) . It is not a form prescribed by the NDIA, so the format is flexible, but the content must be clear enough that both parties understand their obligations. A well-drafted agreement protects participants by setting expectations and protects providers by giving a basis for claiming and resolving disputes.

Service agreements are distinct from service bookings, which are the records created in the NDIA provider portal for agency-managed participants. An agreement is a bilateral document between the participant and provider; a booking is an administrative step in the portal. Both may be needed, but they serve different purposes.

What to include

A solid service agreement covers the core terms that govern the relationship official source (opens in a new tab) . At a minimum, include:

• The supports to be provided: describe what will be delivered, ideally referencing the relevant support categories or item types, without locking in specific support item codes that may change.
• Schedule and frequency: how often supports will be delivered, and at what times or in what arrangement.
• Fees and pricing: the rates that will apply, noting that NDIS-funded supports are subject to the applicable price limits set under the Pricing Arrangements and Price Limits.
• Duration: when the agreement begins and when it will be reviewed or expires.
• Cancellation and short-notice terms: what happens if either party needs to cancel or change a scheduled support, including any notice periods.
• How disputes or complaints are handled: reference to the participant’s right to raise concerns with the NDIS Commission.
• Signatures: from the provider and the participant (or their nominee or representative).

Keep the language plain. A participant should be able to read and understand the agreement without needing a legal background.

Aligning it to the plan and budgets

One of the most common causes of claiming problems is a service agreement that runs beyond a participant’s plan period or commits to spending that exceeds available budgets. Before finalising an agreement, ask the participant (or their plan manager, if plan-managed) for the plan’s start and end dates and a sense of what budget is available for your supports.

Set the agreement’s duration to align with the plan period, with a clause for review if the plan is renewed or replaced. If you are providing supports that draw on more than one support budget, make clear in the agreement which supports come from which budget. This avoids confusion at claiming time and reduces the chance that a support is claimed against the wrong budget category.

Cancellations and changes

Cancellation terms are one of the most important and most contested parts of a service agreement. The NDIS Pricing Arrangements allow registered providers to claim for short-notice cancellations under defined conditions, but only if there is a written agreement in place that includes the cancellation terms official source (opens in a new tab) .

Your agreement should specify what counts as adequate notice, what happens to the fee if a participant gives short notice, and whether the same terms apply if the provider needs to cancel. Setting clear and fair cancellation terms at the outset, and making sure the participant genuinely understands them before signing, reduces disputes and gives you a legitimate basis for claiming if a short-notice cancellation occurs.

Changes to the schedule or scope of supports should be handled by amending the agreement rather than just delivering different supports without documentation. A simple variation clause (for example, agreeing that changes can be confirmed in writing by email) makes the process practical without requiring a full re-signing each time.

Keeping it current

A service agreement is a living document. It should be reviewed whenever a participant’s plan is renewed, when supports change substantially, when there is a change in the participant’s circumstances, or when either party requests a review. Treating the agreement as a one-off document that is signed at intake and never revisited creates risk for both parties: supports may drift from what is documented, pricing may become outdated, and budgets may be exhausted without either party noticing.

Build a review into your process at each plan renewal. Where a participant’s plan is managed by a plan manager, keep the plan manager informed of any changes to the agreement so their records stay aligned with what is actually being delivered and claimed. Good recordkeeping and a current service agreement are among the most straightforward ways to avoid claiming disputes and compliance issues.