The Real Costs of Being an NDIS Provider

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Becoming an NDIS provider is a rewarding journey, but let’s face it—it’s not all sunshine and tax breaks. The financial side of things can feel overwhelming, especially when juggling the intricacies of the NDIS provider registration process, navigating the NDIS provider portal, and managing day-to-day operations. But fear not, because Marco Polo Portal is here to help you cut through the confusion and focus on what matters: making a difference to people living with a disability.

Whether you’re an aspiring NDIS provider in Sydney, an established business in Perth, or just dipping your toes into the world of being an NDIS provider; understanding the costs and expenses involved is crucial to your success. Let’s dive into the financial nuts and bolts.

What Does It Cost to Be an NDIS Provider?

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Before you start offering services as an NDIS provider, you’ll need to invest time, effort, and—of course—money. The costs can vary depending on the size of your business, the services you provide, and your location.

Here’s a breakdown:

Ongoing Costs of Being an NDIS Provider

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NDIS Provider Registration Costs

NDIS providers are classified as registered (less than 10% of the market) and unregistered (90% of the market). However, the NDIS Quality and Safeguards Commission is now slowly transitioning to register all providers, starting with SIL (Supported Independent Living) and Platform Providers.

The NDIS provider registration process involves fees determined by the NDIS Quality and Safeguards Commission. These costs include:

• Audit Costs: To become registered, you’ll need an audit to ensure you meet NDIS standards. This can cost between $3,000 and $10,000+, depending on the scope of your services.
• Ongoing Costs: Auditing isn’t one and done, it’s ongoing throughout the life of your NDIS business. You will have an initial audit then an audit at specific intervals… forever. The bigger the audit, the more expensive it is. For example, your audit at the 1 year mark can cost over $5,000, depending on the auditor, and take up to 5 business days of you being actively involved.

List of registered auditing companies:

AQC Group Pty Ltd

Assured Auditing Pty Ltd

Audit Wise Group Pty Ltd

Australian Quality Certification Pty Ltd (Australian QC)

AVA Certification Pty Ltd

BSI Group (Australia and New Zealand) Pty Ltd

Certifi

Certification Partner Global (Aust) Pty Ltd (CPG)

Citation Certification Pty Ltd

DNV Business Assurance Australia Pty Ltd

Global Compliance Certification (GCC)

Global-Mark Pty Ltd

HDAA Australia Pty Ltd

Institute for Healthy Communities Australia Certification Pty Ltd

JPS Audit Specialists Pty Ltd

Platinum Certification AQA Pty Ltd

Quality Innovation Performance Limited (QIP)

Quantum Certification Services Pty Ltd

SAI Global Certification Services Pty Ltd

Sustainable Certification Pty Ltd

Insurance and Compliance

As a registered provider, you’ll need to maintain insurance coverage, including*:

• • Public liability insurance.
  • Professional indemnity insurance.
  • Workers’ compensation (if you employ staff)
  • Cyber Liability Insurance
  • Property Insurance (if you own the properties)
  • Contents Insurance (if you have provided furniture to participants)
  • Motor Vehicle Insurance (for company cars)
  • Management Liability Insurance
  • Business Interruption Insurance
  • Participant Personal Accident Insurance
  • Employer Liability Insurance
  • Fidelity Guarantee Insurance
  • Abuse Liability Insurance / Sexual Misconduct Liability Insurance *The list goes on and on

These policies can cost anywhere from $1,500 to more than $100,000+ annually, depending on your business size and risk factors.

Compliance is another ongoing expense. This includes regular audits, staff training, and ensuring your operations align with NDIS policies.

Staff and Training Costs

Hiring and retaining qualified staff is one of the biggest ongoing expenses for NDIS providers.

Key costs include:

• • Mandatory Training: Ensure your team is up-to-date on NDIS standards, safety protocols, and participant care practices.
  • Background Checks and Clearances: Police checks, Working With Children Checks (WWCC) or NDIS Worker Screening, Health and medical clearances, if required.
  • Advertising and Marketing Costs: Job posting fees (e.g. on platforms like Seek or Indeed), social media and recruitment agency costs.
  • Induction Training: Site-specific training for workplace safety and policies, introduction to participants, their needs, and support plans (shadow shifts, which cannot be claimed from a participants NDIS plan).
  • Specialized Training: First Aid and CPR certification, Manual handling or safe lifting techniques, Medication administration training, Positive Behaviour Support Plan (PBS) training, High Intensity Support training (e.g. wound care, insulin administration).
  • Technology and Tools: Providing laptops, phones, or tablets for work purposes, Licenses for any required software (e.g. rostering or reporting systems).
  • Uniforms and Equipment: Staff uniforms or dress code allowances, Personal protective equipment (PPE).
  • Ongoing Professional Development: Workshops and seminars to meet NDIS standards, Specialized courses for skills like Autism or mental health support.
  • Administrative Costs: HR time and resources for processing paperwork and contracts, Compliance documentation for NDIS audits
  • Superannuation and Leave: Superannuation is a cost many Providers forget to budget for. However there are other entitlements like Annual Leave, Sick leave, Domestic Violence leave, and Compassionate leave that also need to be budgeted for.
  • Portable long service leave (QLeave is mandated in Queensland and costs the employer an additional % of total gross staff income).

Reference: NDIS Support Worker Cost Model

Regional Costs: Sydney vs. Dubbo

Your location can influence the costs of being an NDIS provider.

Let’s compare:

NDIS Provider Sydney

Operating in Sydney often means higher expenses, such as:

• Higher staff salaries due to the cost of living.
• Increased rent or office space costs.
• Greater competition among providers.

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NDIS Provider Dubbo

While Dubbo may have lower operational costs, you might face challenges like:

• Limited access to specialized training programs.
• Higher logistics costs of providing services to rural or remote areas.
• Difficulty attracting and retaining skilled staff due to a smaller local workforce.
• Smaller and less diverse support networks.

No matter where you’re located, Marco Polo Portal can match participants with housemates they actually want to live with, and fill vacancies for providers with people who match your required ratio and funding amounts for SIL.

Managing NDIS Provider Payments

Once you’re up and running, you’ll rely on the NDIS for payments. Here’s what you need to know:

Payment Cycles

NDIS payments are made after you submit claims via the provider portal. Delays can sometimes occur, so it’s essential to maintain a cash flow buffer. The NDIS has implemented a new fraud detection process that can freeze payments for an undefined amount of time so ensure you are following the most updated version of the NDIS Pricing Arrangements and Price Limits.

Automating Payments

Using software or hiring administrative staff to handle claims can reduce errors and ensure timely payments. Even using basic account software such as Xero or MYOB can make a significant difference to getting paid on time and not missing any potential revenue.
Keep in mind, these accounting platforms have a cost.

Plan-Managed Payments

If your participants are plan-managed, payments can take longer than agency-managed claims. This is because claims need to be approved by the plan manager before processing, adding an additional step to the payment cycle. Some plan managers may also have their own internal delays, which can impact your cash flow. To mitigate these issues, maintain clear communication with plan managers, consider invoicing promptly to reduce delays and ensure you follow up any overdue invoices with the plan manager.

Marco Polo Portal offers insights into tools and strategies for optimizing your payment process through SKOOL.

Maximizing ROI as an NDIS Provider

Being an NDIS provider isn’t just about covering costs—it’s about growing your business and delivering exceptional services.

How to maximize your return on investment:

• • Access the NDIS Provider List: There are a large number of Providers in Australia. Chances are there is another business facing the same challenges you are. Seek out other providers in your area, ask them how they operate and learn from their successes.
  • Stay Updated: Receive the latest news on NDIS provider payments, registration updates, and compliance requirements. The same information is usually shared through multiple platforms including social media and advocacy groups. Try to establish your news sources from experts in the area of information you require.
  • Community Support: Join forums on Facebook or the Marco Polo Skool community to connect with other providers, share tips, and solve common challenges especially when it comes to Home and Living Supports
  • Vacancy Management: SIL, SDA and ILO vacancies are one of the biggest killers of NDIS businesses. Reduce your vacancy costs or open a home with pre-matched participants looking for your service; growing sustainably while making participants happier. This can all be achieved by using Marco Polo Portal to fill your SIL and ILO vacancies.
  • Sign up to Marco Polo Skool to receive articles, offers, sign up bonuses, training and resources that suit your support.

Is Becoming an NDIS Provider Worth It?

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Absolutely! While the costs of being an NDIS provider can add up, the rewards—both financial and emotional—are immeasurable.

You’ll have the opportunity to:

• Make a tangible difference in participants’ lives.
• Build a sustainable and fulfilling business.
• Contribute to a more inclusive and supportive community.
• Show the disability community that your business is committed to quality services by getting registered.

And with tools like Marco Polo Portal, you’ll be well-equipped to navigate the challenges and opportunities that come with the territory.

Final Thoughts

Becoming an NDIS provider requires a clear understanding of the financial commitments involved, from registration to ongoing expenses. But with the right tools, like the Marco Polo Portal, you can streamline processes, reduce costs, and focus on delivering exceptional services.

Whether you’re an aspiring NDIS provider in Perth or Dubbo a seasoned NDIS provider in Sydney, or somewhere in between, Marco Polo Portal is your trusted partner in navigating the complexities of the NDIS.

Ready to get started? Your journey begins here.

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