Let’s make service agreements cool

Big changes have swept through the NDIS - and if your service agreement is still stuck pre-October 2024, it’s time to roll up your sleeves. With the new NDIS Act, the rollout of PACE, updated Operational Guidelines, and a sharper NDIA-eye on payment integrity, outdated agreements just won’t cut it anymore.

So let’s break down why refreshing your service agreement isn’t just a “nice to have” - it’s an absolute must. And how to get the ball rolling.

Why update your service agreement?

Stay compliant

The new NDIS Act sets clear expectations for spending NDIS funds only on NDIS supports and in line with a participant’s plan. And the NDIA now has the power to raise debts. If your service agreement isn’t up to scratch, you risk non-compliance - an issue that can carry serious consequences. For example, a support only counts as a NDIS support if it’s linked to the participant’s NDIS-eligible impairment. If the participant doesn’t share that information with the provider, there’s a chance the support won’t meet this criteria. If funding goes towards something that isn’t an NDIS support, the NDIA could raise a debt against the participant and/or the provider. While we haven’t seen them do this yet, they are already cancelling payments through payment integrity audits for other compliance issues - leaving providers out of pocket for services they’ve already delivered.

Protect your bottom line

Out-of-date agreements can cost you, literally. Just look at the NDIS Quarterly Report from December 2024: over 7,000 payment integrity tip-offs in one quarter. Chances are many came from participants who didn’t understand what they were being charged for and why. When there’s a lack of clarity around pricing, roles, or responsibilities, things can get messy fast. A strong, up-to-date agreement can prevent costly disputes.

Keep participants safe

Ultimately, service agreements exist to support and safeguard participants. When agreements are clear, current, and easy to understand, participants are better equipped to make informed decisions and feel confident navigating the system. Transparency builds trust – and trust builds safer, more supportive services.

Understanding the importance of a GREAT service agreement

Service agreements are more than just paperwork; they are a relationship-building and boundary-setting tool. Here’s what they do:

• Establish a shared understanding - service agreements are all about getting on the same page. They spell out for each individual participant what service you’re going to deliver, based on their plan. No guesswork, no grey areas. Just a clear breakdown of what supports will be delivered, what they’ll cost, and the rights and responsibilities on both sides.
• Mitigate and manage risk - service agreements aren’t much help once things have gone pear-shaped. Their real power lies in prevention. A well-drafted agreement, written in a way the participant actually understands, helps manage risk upfront. It should lay out shared responsibilities to manage risks, especially for situations where the NDIA’s rules or the Plan isn’t crystal clear on how funding should be used (cause we all know being ‘crystal clear’ isn’t always the NDIA’s strong suit). That way, everyone’s protected.
• Supports communication between parties - just flicking a service agreement over and asking for a signature doesn’t mean the participant actually gets it. The real magic happens when you discuss the agreement in your client onboarding and regular check-ins. That way, participants understand their rights and responsibilities. Plus, service agreements aren’t set-and-forget. They should grow and shift over time, especially as the new NDIS Act takes shape. Ongoing, open communication is what keeps them relevant.

How to approach revising your service agreements

Not sure where to start? Begin by looking at what’s changed under the new NDIS Act (and beyond!) and how it’s playing out in practice - especially where it affects both participants and providers. Then, bring those changes to life in your service agreement.

Figure1. Mapping updates to terms in service agreements

For example, back in April 2023 the NDIA published the NDIS Supported Decision Making Policy, which aims to improve the way people with disability are supported to make decisions in the NDIS and the role that nominees and service providers play in supporting them to make decisions. This might seem like old news (2023 does seem like a lifetime ago) but this is a critical component of contemporary best practice that hasn’t been widely picked up. Using the approach mapped out above in Figure 1. let’s look at how decision-making rights and responsibilities might be incorporated into a service agreement.

Participants are responsible for:

• Actively engaging in decisions that affect them, including by sharing their will and preferences.
• Letting providers know when they need support to make decisions.

Nominees are responsible for:

• Making decisions on the participant’s behalf, but only in the areas they’ve been appointed - and always in line with the participant’s will and preference.

Providers are responsible for:

• Recognising the participant’s decision-making rights.
• Respecting and upholding choice and control.
• Communicating clearly, in formats that the participant understands.
• Supporting decision-making in a way that’s free from conflict of interest.

These responsibilities should be spelled out in your service agreement, not hidden in legal jargon. That means being clear about:

• Who the decision-maker is.
• When and how the participant will ask for support with decision-making.
• What decision-making support looks like in practice.
• And how the provider will deliver it.

This kind of clarity doesn’t just tick compliance boxes, it builds trust, empowers participants, and protects your organisation.

Key changes to include in your revised service agreement

As you prepare to refresh your service agreements, there are a few critical areas you'll want to tackle first:

• NDIS Supports - In line with the new NDIS Act, make it clear that providers are responsible for delivering and participants for spending only on supports that are considered NDIS Supports, in line with the participant’s Plan.
• Budgeting responsibilities - spell out the need for participants to stay within their NDIS budget and for providers to avoid overservicing- that is, delivering more services than a participant can afford within their Plan.
• Information sharing & privacy - Participants may need to share key details from their Plan that limit spending - like stated supports, funding periods and budget allocations. At the same time, providers should respect a participant’s right to privacy and their choice not to hand over their entire plan.
• Cancelled payments - with payment integrity audits ramping up, it’s more important than ever to address what happens if the NDIA cancels payments for services already delivered. So set expectations clearly around how these situations will be handled and who’s responsible for what.

Learn more

The NDIS is shifting fast, and staying ahead means getting proactive. So we’ve created a new workshop Service Agreement Refresh: Adapting to the Changing NDIS - a practical, no-fluff 2-hour workshop designed to help you build modern, compliant, participant-friendly service agreements that actually work in today’s landscape.