Is this NDIS invoice GST free? The conditions that apply

The short answer

An NDIS support is GST-free only if all four conditions in section 38-38 of the GST Act are met for that supply: the participant has an NDIS plan in effect, the supply is a reasonable and necessary support in the plan, there is a written agreement that says so, and the supply is of a kind listed in the Minister's NDIS determination. If any condition is missing, the supply is taxable for a GST-registered provider, even though the client is an NDIS participant.

Sources
A New Tax System (Goods and Services Tax) Act 1999 (Cth), section 38-38
A New Tax System (Goods and Services Tax) (GST-free Supply National Disability Insurance Scheme Supports) Determination 2021, as amended in 2025
Australian Taxation Office, National Disability Insurance Scheme (QC16263)
National Disability Insurance Scheme Act 2013 (Cth), sections 33 and 37

The four conditions

The Australian Taxation Office sets out the requirements of section 38-38 of the A New Tax System (Goods and Services Tax) Act 1999 as four tests, and all must be met. The participant must have an NDIS plan in effect, meaning a plan approved by the NDIA that has not been replaced. The supply must be of reasonable and necessary supports in the participant's plan. There must be a written agreement between you and the participant or another person. The supply must also be of a kind listed in the NDIS GST-free supply determination made by the Minister.

What the written agreement must say

The agreement must identify the participant and state that the supply is one or more of the reasonable and necessary supports in the statement of supports in their plan. It can be with the participant, a nominee, a guardian or relative, a registered plan manager or the NDIA. It can be one document or several read together, including emails, but together they must show a legally binding obligation to make the supply. A signed service agreement is the usual way to meet this test.

Which supplies are covered

The determination has two tables. The first covers supplies such as specialist disability accommodation, help coordinating life stages, transitions and supports, household tasks, travel and transport assistance excluding taxi fares, interpreting, help with education and employment, assistive equipment for recreation, early childhood supports and plan management. The second covers personal care, daily living and life skills, behaviour and therapy supports, assistive equipment for general tasks and home modifications, but only where the supply is also covered by one of three other GST determinations on care, residential care or health services. The determination applies to supplies made up to 30 June 2027.

Common reasons a supply is not GST-free

Supplies beyond the amount of a support stated in the plan are not GST-free. A supply made when no plan is in effect, or without a written agreement in place, fails the conditions. Services a subcontractor provides to you are taxable, because the supply is made to you rather than to the participant. A service the participant asks for that is not part of their plan, such as a report for a third party, is assessed separately and may be taxable. Some services, such as exercise physiology, fall outside the NDIS determination but may still be GST-free under the health rules if a Medicare benefit is payable.

Plan managers, invoices and advice

Supplies to plan-managed participants are normally still made to the participant, not to the plan manager, so the same conditions apply. If you are not registered for GST, you do not charge GST on any supply. If you are registered, show each GST-free line clearly on the invoice and keep the written agreement and evidence of the plan with your GST records. For a borderline supply, contact the ATO or a registered tax agent.

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