What is it?
Setting your pricing and establishing an effective invoicing system is crucial for managing a sustainable business as an independent NDIS support worker. Pricing your services appropriately helps you cover your expenses, compensate yourself fairly and remain competitive.
Invoicing helps you get paid for the work you do while maintaining transparency and professionalism with your participants.
Why it matters
- Fair compensation: Your pricing needs to reflect your time, skills, expertise and business costs.
- Professionalism: Clear, detailed invoices build trust and help you track payments and reduce errors.
- Cash flow: Timely and accurate invoicing helps you manage the financial health of your business.
How to do it
1. Set your pricing
Understand NDIS pricing: Familiarise yourself with the current NDIS pricing and payments guidance. Confirm the support item, funding management and rules that apply before agreeing a rate. Price limits are maximums where applicable, not a rate you must charge.
Factor in your costs: Include insurance, equipment, travel, administration and other business-related expenses. Be realistic about how much you need to earn to maintain profitability.
Consider your experience and skills: Additional qualifications, specialisations and experience can inform your pricing. Ensure the services are within your scope and participants understand what they are paying for.
The dollar amounts in the original guide are illustrative examples, not a current NDIS rate schedule. Use current official information for actual quotes and invoices.
2. Create an invoicing system
Use the Invoice Template to create an easy-to-understand invoice. Include your business name, ABN, participant details, date of service, services provided and total due.
Include payment terms: Specify the agreed due date, such as “payment due within 14 days”. Make any proposed charges clear and ensure the terms are appropriate before including them.
Include relevant NDIS details: Check what the participant or plan manager needs, including the support item and service dates, to process payment.
There are several ways to manage invoices:
- Excel or Word: Create simple, customisable invoices using a consistent template.
- Accounting software: Tools such as Xero, QuickBooks or Zoho Invoice may help manage invoices, payments and reminders. Check features and suitability before choosing one.
- Other invoicing tools: Some payment platforms offer invoicing features. Check fees and suitability for the participant’s payment arrangements.
3. Track your payments
Keep track of what’s paid and what’s outstanding using a spreadsheet or accounting tool. Record the invoice number, date, amount, due date and payment status.
Tip: Set a reminder when payments are due so you can follow up promptly and politely.
What you will need
- A list of your services, rates and any relevant conditions.
- Your business and invoice details.
- A system for recording income and outstanding payments.
- The participant’s agreed payment arrangements.
What to expect
Researching pricing and calculating costs may take a few hours. Once your system is set up, creating invoices should become part of a regular routine.
Clear terms and an organised system can help reduce confusion and payment delays.
Illustrative example
Tom used a simple invoice template and tracked payments in a spreadsheet when starting his support business. Setting clear pricing and sending invoices promptly helped him understand what had been paid and what needed follow-up.
Common mistakes to avoid
- Underestimating costs: Factor in all your expenses so your rate is sustainable.
- Using an inconsistent system: Clear and consistent invoices are easier to process and reconcile.
- Delayed invoicing: Late invoices can lead to late payments.
FAQs
How do I know if I’m charging the right rate?
Check the rules that apply to the support and funding arrangement, then consider your costs, experience and agreed scope of work.
What if a participant does not pay on time?
Check the agreed due date and whether any information is missing. Send a polite follow-up email or call, and keep a record of the conversation.
Action steps
- Customise the invoice template with your business details.
- Set up a payment tracking spreadsheet or accounting tool.
- Review your pricing against your expenses and applicable NDIS rules.
- Agree the rate and payment terms with the participant.