Should Providers Charge GST?
Should you be charging GST for your services as a provider to an NDIS participant? Navigating the do’s and don’ts of the NDIS, especially when it comes to invoicing for your services correctly can sometimes be a little tricky.
Invoicing Practices for GST-Charging NDIS Providers
Whether a provider is charging GST or not, it’s important to include the following details on each invoice:
The words 'Tax Invoice' prominently displayed
The provider's Australian Business Number (ABN)
The invoice date and a unique invoice number
The participant's name, address, and NDIS number
A description and cost breakdown of the services provided
The total amount payable
If a provider charges GST, it’s important to note that on the invoice as well as the GST amount. Please note, if GST is applicable to a support, the price limit is inclusive of GST.
If a provider that doesn’t charge GST, the tax invoice should clearly state that their services are GST exempt.
When it comes to charging or not charging GST, it’s important to note that tax regulations can change, and we recommend checking with a qualified accountant or a relevant tax authority for the most up-to-date and accurate information regarding GST requirements for NDIS providers.
Should NDIS Providers Charge GST?
Goods and Services Tax (GST) is a value-added tax added to most goods and services consumed or sold in Australia. Generally, businesses with an annual turnover of $75,000 or more (or $150,000 or more for non-profit organisations) are required to register for GST and charge it on their taxable supplies.
However, when it comes to NDIS services, they are typically considered GST-free when services are provided directly to NDIS participants. According to the ATO a supply to a NDIS participant is GST-free if all the following requirements are met:
the NDIS participant has a NDIS plan in effect.
the supply is of reasonable and necessary supports that are specified in the statement of supports in the participant's NDIS plan.
there is a written agreement between you and the NDIS participant (or their representative)
it is a supply covered by one of the tables in the A New Tax System (Goods and Services Tax) (GST free Supply—National Disability Insurance Scheme Supports).
Are there any exceptions?
Although typically services are considered GST free, that’s not to say there aren’t exceptions to this rule. This is because not all services provided by NDIS providers are automatically considered GST-free. These may include:
Goods supplied under a lease or hire arrangement
Accommodation
Activities with a recreational or leisure focus
Transport especially if the transportation is not a specialised disability service.
Supports not directly related to a participant's plan
Ultimately, best practice as a provider is to consult with a qualified accountant or a relevant tax authority regarding GST requirements.
Thank you for joining us on this journey. Remember, your goals are our priority, and we’re here to guide you every step of the way. If you ever need assistance, clarification, or simply want to discuss your NDIS plan, don't hesitate to reach out. Our friendly team can be contacted on 1300 890 457 or support@inchoice.com.au.