Ask DSC: What evidence is required for Short Notice Cancellations?

Question: We charged a Short Notice Cancellation and a participant has asked for evidence that I couldn't find alternative work for the staff member. What does this mean and how can I meet this requirement?

You’ve received a short-notice cancellation (SNC) from a participant, charged the agreed cancellation fee, and now you’re being asked to provide evidence that you couldn’t find alternative work for the staff member. It’s a fair question – and one that gets to the heart of what SNC fees are designed for: to recoup actual out-of-pocket costs.

But what kind of evidence are we really talking about? Let’s unpack what this requirement means, where it comes from, and how you can meet it, without needing a law degree or a forensic accountant.

Why Short notice cancellation (SNC) fees exist

The NDIS Pricing Arrangements and Price Limits allow providers to charge up to 100% of the agreed fee for a support when it’s cancelled on short notice. Short notice is considered 7 days for Disability Support Worker (DSW) related supports and 2 clear business days for non-DSW supports.

Typically, “2 clear business days” means the notice period excludes both the day of the scheduled support and the day the cancellation is made. For example, if a support is scheduled for a Friday, it would need to be cancelled by the end of Tuesday. This allows Wednesday and Thursday to count as the two clear business days.

But there's a catch: you can only charge if you’ve genuinely incurred a cost, meaning:

You couldn’t find alternative billable work for the worker during that time, and
You are still required to pay the worker for that time under their employment terms (like SCHADS or an enterprise agreement).

In other words, SNC fees aren’t an automatic “compensation,” they’re a cost recovery mechanism.

So what does “evidence” actually mean?

When a participant or the NDIA asks you for evidence that you couldn’t reassign the worker, they’re not necessarily expecting a court-style dossier. But they are asking you to demonstrate that your claim meets the rules.

The NDIS Provider Payment Assurance Program requires you to maintain accurate records of the supports you claim for, including cancellations. This includes:

Evidence that the cancellation met the SNC rules (e.g. how late the notice was)
Documentation showing that you were unable to reassign the staff member
Proof that the staff member was paid or entitled to be paid for that time.

Here are a few simple but meaningful ways to document your attempt (or inability) to find replacement work:

Rostering records- Show that there were no available bookings with other participants during that time. This could include screenshots of an empty timeslot in your rostering system or notes that no other shift changes were possible.
Internal communications or notes- If you or your staff check with other team members for possible reallocation, keep a note of that communication and what was found (or not found). A case note or email trail might help.
Worker entitlement- Attach or reference the worker’s employment terms (e.g. permanent part-time under SCHADS) that show why you still needed to pay them even though the support didn’t go ahead.

Hot tip: Make the time count (even if the participant cancels)

If you can’t reassign the staff member to another participant, that doesn’t mean the time has to go to waste, especially if you still have to pay the worker.

Instead of charging a cancellation fee and losing the time, you could collaborate with the participant to find a meaningful alternative use of that time, something that benefits them and aligns with their NDIS goals.

This won’t meet the criteria for claiming a Short Notice Cancellation, but it might be claimable as non-face-to-face support, depending on the activity and the support type. Either way, it shows great intent and avoids wasting precious funding.

Here are some ways to make that time valuable:

A speech pathologist could use the time to develop visual communication tools or draft training resources for the participant’s support workers.
A support worker could research community events or activities that align with the participant’s interests or find suitable social or work-related opportunities.
An occupational therapist or other allied health professional could get a head start on reports, liaise with equipment suppliers, or chase up progress on assistive technology quotes or trials.
A recovery coach or support coordinator might follow up on referrals to mainstream services, start writing the progress report, or review allied health reports.

The possibilities are endless, but the key is to:

Talk with the participant in advance about how they’d like this kind of time to be used (and include it in the service agreement if needed).
Record the activity clearly so you have solid evidence of what was done and how it relates to the participant’s plan goals.

Used well, these moments of unexpected downtime can actually strengthen support outcomes, while also meeting your obligations as an employer.

What if the participant didn’t understand the fee?

This is where your service agreement matters. The NDIS Pricing Arrangements require that cancellation fees must be:

Agreed in advance
Clearly described in the service agreement
Applied only in line with those agreed terms

The NDIA has made it clear that a service agreement is only meaningful if the participant understands it. If a participant disputes a cancellation fee and says they didn’t understand the terms, there’s a risk that it could trigger a payment integrity audit.

That’s why it’s best practice to explain SNC fees clearly during onboarding, and not just flick over an agreement for signing.

Tips to stay compliant and avoid disputes

Include SNC terms in your service agreements – with the correct timeframes (2 clear business days or 7 days) depending on the support type.
Explain the policy clearly to participants and their supporters.
Keep rostering and payroll records showing what happened with the staff member’s shift.
Note any efforts to find alternative work – even if informal.
Find alternate ways to use the time so it doesn’t go to waste.
Be empathetic and flexible where appropriate – for example, waiving the fee in genuine hardship situations.

When cancellations keep happening: Don’t just claim- Check-in

The NDIS Pricing Arrangements don’t set a hard limit on how many short notice cancellations (SNCs) you can claim from a participant’s plan. But that doesn’t mean it’s business as usual when cancellations start stacking up.

In fact, the NDIA makes it clear that providers have a duty in these situations to:

“…if a participant has an unusual number of cancellations, then the provider should seek to understand why they are occurring.”

NDIS Pricing Arrangements and Price Limits 2025–26 v1.0, p. 28

Frequent cancellations might be a sign of something deeper, like a mismatch in support preferences, health issues, life changes, or even confusion about the service agreement. Before continuing to claim SNC fees, it’s good practice to:

Reach out to the participant or supporters to understand what's going on
Document the conversation and any agreed-upon changes to the support schedule
Explore whether a change in support delivery is needed

It’s not just a compliance issue, it’s part of building trust, offering responsive support, and preventing disengagement or disputes down the line.

Wrapping it up

Charging a Short Notice Cancellation fee isn’t just about ticking a box, it’s about being able to justify that the claim is accurate, fair, and aligns with both your obligations to staff and participants.

Being transparent, keeping good records, and building a clear understanding with participants from the get-go will not only help you comply, it will build trust.