Tax Agents for NDIS Providers – Stay Compliant and In Control

Let’s be honest, most people don’t jump out of bed excited about tax time – unless you’re a tax agent or a real spreadsheet junkie. But for NDIS providers across Australia, it’s not just about dotting i’s and crossing t’s. Getting your tax right is a critical part of staying compliant with the National Disability Insurance Scheme and ensuring your services remain strong, trusted and, most importantly, funded. And if you think the ATO gives out gold stars for guessing – think again. 

NDIS funding has grown rapidly, with over 610,000 participants accessing services as of June 2023 (NDIS Quarterly Report). With this growth comes increased scrutiny on how providers manage their books. That’s where the humble tax agent becomes your best mate in business – the one who knows what’s claimable, what’s not, and how to keep the ATO from knocking. 

In this article, we’ll walk you through why having a tax agent who understands the NDIS landscape is more than a good idea – it’s essential. Whether you’re a registered provider or considering jumping into the NDIS space, here’s what you need to know to stay compliant and in control. 

Why NDIS Providers Need Specialised Tax Help 

The NDIS isn’t your average small business gig. You’re not just invoicing customers and tracking expenses. You’re dealing with government funding, strict regulatory requirements, participant plans, GST implications, and often payroll for a growing team. A standard bookkeeper or generalist accountant might not be across all of that. 

Here’s what makes tax for NDIS providers particularly complex: 

• GST and NDIS: Not all NDIS services attract GST. Some are GST-free, others aren’t – and it depends on who you’re invoicing and what the service is. It’s easy to misclassify and either overpay or get caught during an audit. 

• Invoicing Compliance: Claiming NDIS funds through the myplace provider portal requires detailed, accurate invoicing. Mess this up, and payments can be delayed or clawed back. 

• Payroll Obligations: With a mix of casual support workers and permanent admin staff, superannuation, STP reporting, and awards compliance can be a minefield. 

• Capital Purchases and Depreciation: If you’re purchasing equipment or vehicles for service delivery, knowing how to properly depreciate these assets (and what you can immediately write off) saves you big dollars. 

A tax agent who understands this space helps you avoid rookie mistakes and keeps your finances neat as a pin come EOFY. 

The Rising Tide of NDIS Audits 

In 2023, the NDIS Quality and Safeguards Commission ramped up audit activity to weed out non-compliant providers. According to a report from the Commission, over 1,200 providers were audited in 2022–23, with many identified for poor record-keeping or mismanagement of funds.  

A skilled tax agent ensures that your record-keeping matches your claims. They help you avoid the dreaded letter from the ATO or NDIS Commission asking for “a quick chat.” 

Chart: Key Reasons for NDIS Provider Audits in 2022–23 

Source: NDIS Commission Audit Data 2023 

Common Tax Mistakes NDIS Providers Make 

Here are a few of the common “oopsies” that even well-meaning providers make: 

1. Assuming all services are GST-free 
2. Not reconciling invoices to actual participant plan usage
3. Missing key deductions (like professional development or travel) 
4. Failing to lodge BAS or PAYG on time 
5. Forgetting to register or deregister for GST when needed 

Just one of these can make your EOFY as stressful as a Saturday sausage sizzle in the rain. A tax agent makes sure you’re ticking the right boxes year-round. 

How a Tax Agent Can Actually Save You Money 

Hiring a registered tax agent might feel like just another cost. But here’s what they often save you: 

• Missed deductions: Proper claims on car use, home office expenses, equipment, training and insurance can reduce your taxable income significantly. 

• Avoided fines: The ATO charges late lodgement penalties starting at $313 and increasing rapidly. Add interest and things can spiral. 

• Time savings: Let’s face it – your time is better spent with your team or participants, not wrangling spreadsheets or decoding ATO-speak. 

With tools like Xero, MYOB or QuickBooks (read our review on those here) a good tax agent can also set you up with easy digital processes, so compliance isn’t such a chore. 

What to Look for in a Tax Agent 

If you’re ready to find someone to keep your tax clean and NDIS-compliant, look for these features: 

• Registered with the Tax Practitioners Board (TPB) 

• Experience with NDIS or health sector clients 

• Knowledge of GST rules specific to disability services 

• Willing to provide quarterly support – not just EOFY panic assistance 

• Integrates digital tools for easier tracking 

Bonus points if they explain things without using tax jargon or making you feel like you skipped an MBA. 

Final Word: You Don’t Have to Do This Alone 

Look, taxes and compliance aren’t most people’s ideas of a good time. But they are essential to staying in business, protecting participant trust, and growing your services sustainably. Whether you’re a sole trader support worker or a rapid scaling provider, working with the right tax agent can make the difference between smooth sailing and getting a surprise audit call on a public holiday. 

At Max Margins Accountant, we don’t just do tax returns. We partner with NDIS providers across Australia to simplify accounting, stay compliant, and help you keep more of what you earn – legally, ethically and stress-free. We know the rules, we speak your language, and we’re not afraid of the ATO (we actually enjoy chatting with them, which says a lot about us). 

Let’s keep your books tidy and your compliance sharp, so you can keep doing the brilliant work you do. Contact us for a free consultation and find out how we can support your NDIS journey.