Supporting Australians with disabilities, the Australian government funds their costs through the National Disability Insurance Scheme (NDIS). It is worth noting that these funds reach out to eligible people via NDIS providers. While there is no registration fee upfront, the process of becoming an NDIS provider entails certain investments. So, if you wish to turn your passion for helping others into a sustainable business, read on. We’ll head straight to answering the real question: real question: How much does it cost to become an NDIS provider, and where do those costs hide?
Stepwise Breakdown of Costs Involved in Becoming An NDIS Provider
Wondering how much does it cost to become an NDIS provider? Here’s the complete breakdown of costs involved at each step:
Lodging an Online Application
The first step for NDIS registration is filing an online application with the NDIS Quality and Safeguards Commission through the official NDIS provider portal. This step involves completing the application within the 60-day timeframe. You provide details of the organisation, the business’ corporate structure, contact details and key personnel information and choose the support services you plan to offer. It also involves undergoing a business self-assessment using the NDIS Practice Standards.
Cost: This part is FREE.
Auditing
After you submit your application, you receive an Initial Audit Scope (Scope of Audit) via email. It tells you about the kind of audit you need depending on whether you will be offering low-risk or high-risk services for people. This step requires engaging an approved quality auditor.
The two types of NDIS audits are:
- Verification Audit (For Low-Risk Services)
It is required for low-risk providers (e.g., household tasks, personal care assistance, assistive products). It involves a desktop audit (document review only).
Cost: $900 – $1,500
- Certification Audit (For High-Risk Services)
It is required for complex services (e.g., behaviour support, high-intensity personal activities). It involves on-site visits and participant interviews. It is worth noting that the NDIS providers who offer a range of services and just one high-risk service will have to go through a certification audit.
Cost: $3,000 – $5,000
Note: As a part of the certification process, you will repeat the full audit cycle once more after your initial certification expires. One of these is the 18-month mid-term evaluation, and the other is the tri-annual audit conducted every three years.
Assessment by the NDIS Commission
After the audit, the NDIS Commission reviews the findings and determines eligibility for NDIS provider registration.
Cost: No fees.
Administrative & Documentation Costs
Preparing for the audit requires policies, records, and compliance documents in place. These entail some expenditures as well.
Cost: If outsourced, $1,000 – $3,000 for professional help with policies and procedures.
Insurance Costs
Like any other business, preparing for tough times is a must. NDIS providers must obtain business insurance, which can include:
- Public Liability Insurance
- Workers’ Compensation Insurance
- Professional Indemnity Insurance
- Theft
- Commercial vehicles
- Product Liability Insurance
Cost: $1,500 – $10,000 per year depending on business size
Staff Recruitment and Training
The hiring and wages must be included as well when calculating how much does it cost to become an NDIS provider. Additionally, depending on the qualifications of your staff, you might also need to consider training costs
The NDIS Quality and Safeguards Commission recommends that NDIS-registered providers incorporate their Quality, Safety, and You course, outlining workers’ responsibilities under the NDIS Code of Conduct, into every new worker induction.
Cost: These costs depend on staff size and state-based requirements:
- NDIS Worker Screening Check: $80 – $150 per person
- Police Check: $50 – $80 per person
- NDIS Mandatory Training: Free to $500 per person
- First Aid Certification (if required): $100 – $200 per person
Operational Costs
The costs covered so far were mandatory and unavoidable. Now comes the part that you can tone up or down.
Cost: These costs depend on your business scale requirements and the choices you make accordingly:
- Marketing and Advertising: It includes website development, social media ads, hiring a marketing agency, SEO strategy, and other digital and offline marketing.
- Office Space and Equipment: Office Rental, equipment, and supplies such as computers, uniforms, personal protective equipment, etc.
- NDIS Business Management Software: Solutions for client records, scheduling, and reporting.
Strategies to Reduce Costs
Considering the parameter shared above on how much does it cost to become an NDIS provider, one can easily estimate. For low-risk service providers, it can be a minimum of $2,500 and for high-risk, it can go up to $20,000+. However, for both, the following strategies work in cost-cutting:
- Collaborate with other providers to share resources
- Use free government resources
- Check NDIA grants for financial support
- Invest in quality, not cheap solutions
- Frame good policies and invest in training to reduce long-term costs
Wrapping Up
To lend a helping hand to people living with a disability is hugely rewarding. When you step out into this endeavour with NDIS, plan ahead for a smooth sail. We’ve shared the potential costs with you. Take time to fill out numbers that are based on your business scale set-up and choices.