Before NDIS Registration: Building the Right Foundation
NDIS registration is a significant undertaking, but it's not the first step. Before you can register as an NDIS provider, you need a properly established business with the right structure, systems, and protections in place.
This guide walks you through the essential business setup steps that need to happen before you start your registration application.
Step 1: Choose Your Business Structure
Your business structure affects liability, tax, compliance complexity, and growth potential. Choose carefully - it's difficult and expensive to change later.
Option 1: Sole Trader
What it is: You operate as an individual, with no legal separation between you and the business.
Pros:
- Simplest and cheapest to set up
- Minimal ongoing compliance
- Full control over decisions
- Simple tax reporting (income on personal return)
Cons:
- Unlimited personal liability
- Harder to separate personal and business finances
- Less credibility with some participants/organisations
- Limited growth and exit options
Best for: Solo practitioners starting out with low-risk services.
NDIS Registration: Straightforward - register as an individual.
Option 2: Company (Pty Ltd)
What it is: A separate legal entity owned by shareholders and managed by directors.
Pros:
- Limited liability (personal assets generally protected)
- Professional credibility
- Easier to bring in partners, investors, or sell
- Can employ people more easily
- Potential tax advantages at scale
Cons:
- More expensive to establish ($500-1,000)
- Ongoing compliance requirements (ASIC fees, reporting)
- More complex tax and accounting
- Director duties and responsibilities
Best for: Providers planning to grow, employ staff, or wanting liability protection.
NDIS Registration: Register as a company. Key personnel (directors) need worker screening.
Option 3: Partnership
What it is: Two or more people carrying on business together.
Pros:
- Shared resources and responsibilities
- Relatively simple to establish
- Flexible profit distribution
Cons:
- Joint and several liability (each partner liable for all partnership debts)
- Potential for disputes
- Complex if a partner wants to exit
Best for: Generally not recommended for NDIS providers - consider a company structure instead.
Recommendation by Service Type
| Service Type | Recommended Structure |
|---|---|
| Solo allied health practitioner | Sole trader initially, move to company as you grow |
| Support worker | Sole trader |
| Support coordination | Company (due to liability exposure) |
| SIL/SDA provider | Company (definitely) |
| Plan manager | Company (required for financial services) |
Step 2: Get Your ABN
An Australian Business Number (ABN) is mandatory for all NDIS providers.
How to Apply
- Go to abr.gov.au
- Click "Apply for an ABN"
- Complete the application (typically 15-30 minutes)
- Receive your ABN immediately (in most cases)
What You'll Need
- Proof of identity
- Business details
- Tax File Number
- Business address
Common Issues
Rejected applications: Usually due to identity verification issues. Follow up with the ATO.
Wrong entity type: Make sure you're applying as the right structure (individual vs company).
Already have an ABN: If you have an existing ABN from another business, you may be able to use it.
Step 3: Register Your Business Name (If Needed)
If you're operating under a name that's not your own name (for sole traders) or your company name (for companies), you need to register a business name.
When Business Name Registration is Required
Required:
- Trading as "ABC Allied Health" when your company is "Smith Holdings Pty Ltd"
- Trading as "Community Care Services" when you're Jane Smith (sole trader)
Not Required:
- Operating as "Jane Smith Physiotherapy" when you're Jane Smith
- Operating as "Smith Health Services Pty Ltd" (your actual company name)
How to Register
- Go to asic.gov.au
- Search to confirm the name is available
- Register online ($39 for 1 year, $92 for 3 years)
- Link to your ABN
Step 4: Set Up Business Banking
Separating personal and business finances is essential for:
- Tax compliance
- Financial clarity
- Professional credibility
- Audit requirements
What You Need
Business transaction account:
- Receives client payments
- Pays business expenses
- Used for NDIS claiming
Business savings account (optional):
- Tax provisions
- Emergency fund
- Future investment
Choosing a Bank
Consider:
- Fees and charges
- Online banking features
- Integration with accounting software
- Service quality
Tips
- Open accounts before you start trading
- Set up online banking immediately
- Consider accounting software integration
- Don't mix personal and business transactions
Step 5: Obtain Insurance
Insurance is a non-negotiable requirement for NDIS providers. You need appropriate coverage before registration.
Required Insurance
Public Liability Insurance
- Minimum: $10 million (most providers choose $20 million)
- What it covers: Claims from third parties for injury or property damage
- Cost: $400-1,500/year (varies by service type and size)
Professional Indemnity Insurance
- Minimum: $2 million (recommended $5 million)
- What it covers: Claims arising from professional advice or services
- Cost: $600-2,500/year (varies by profession and claims history)
Often Required
Workers Compensation
- Required if: You have employees (mandatory in all states)
- What it covers: Employee injuries and illness from work
- Cost: Varies by state and industry (typically 1-5% of wages)
Recommended
Cyber Liability Insurance
- Why: You hold sensitive participant information
- What it covers: Data breaches, cyber attacks, privacy claims
Management Liability
- Why: Protects directors and officers
- What it covers: Claims against directors personally
Where to Get NDIS Provider Insurance
Specialist insurers with NDIS experience:
- BizCover
- AON
- Guild Insurance
- Jardine Lloyd Thompson
Getting Quotes
Information you'll need:
- Services you'll provide
- Expected revenue
- Staff numbers
- Location
- Claims history
What to ask:
- Is the policy NDIS-specific?
- Does it cover all my registration groups?
- What are the exclusions?
- What's the claims process?
Step 6: Register for GST (If Required)
When GST Registration is Required
Mandatory: If your GST turnover is $75,000 or more per year
Optional: If your turnover is under $75,000, registration is voluntary
NDIS Services and GST
Many NDIS services are GST-free, including:
- Most disability support services
- Transport for disability support
- Accommodation support
However, some services may be taxable:
- Administrative services
- Some consultancy services
- Non-disability support activities
How to Register
- Log into Australian Business Register
- Add GST registration
- Choose reporting cycle (monthly, quarterly, annually)
Ongoing Requirements
- Lodge Business Activity Statements (BAS)
- Charge GST on taxable supplies
- Claim GST credits on business purchases
- Keep appropriate records
Step 7: Set Up Accounting Systems
Good financial systems are essential from day one.
Accounting Software Options
Xero
- Widely used in Australia
- Good NDIS add-ons available
- From $29/month
MYOB
- Australian-made
- Good for small businesses
- From $25/month
QuickBooks
- User-friendly interface
- Good value
- From $15/month
What Your System Should Track
- Income by client/service
- Expenses by category
- GST (if registered)
- Bank reconciliations
- Invoicing and payments
Consider a Bookkeeper
Even small providers benefit from professional bookkeeping:
- Accurate records
- Tax compliance
- Financial clarity
- Time savings
Cost: $50-100/hour or fixed monthly fees
Step 8: Define Your Service Offering
Before registration, clearly define:
What Services Will You Provide?
- Be specific about your service types
- Consider your qualifications and experience
- Understand which registration groups apply
- Think about your capacity
Who Will You Serve?
- Age groups
- Disability types
- Geographic area
- Complexity levels
How Will You Deliver Services?
- In-home
- Community-based
- From premises
- Telehealth/virtual
- Mobile/travelling
What Will You Charge?
- Understand NDIS Price Guide limits
- Consider your costs
- Research market rates
- Factor in travel, admin, etc.
Step 9: Consider Your Location and Setup
Home-Based Business
Pros:
- Low overhead
- Flexibility
- No commute
Considerations:
- Council regulations
- Insurance implications
- Client meetings
- Professional image
Mobile/Travelling Service
Pros:
- Serve clients where they are
- No premises costs
- Flexibility
Considerations:
- Travel time and costs
- Vehicle insurance
- Safety protocols
- Geographic limits
Premises-Based
Pros:
- Professional image
- Controlled environment
- Group services possible
Considerations:
- Lease costs
- Fit-out requirements
- Accessibility compliance
- Insurance requirements
Step 10: Worker Screening
Even before registration, get your worker screening underway.
Who Needs Screening?
NDIS Worker Screening is required for:
- All key personnel (owners, directors, managers)
- Anyone in risk-assessed roles
- Workers with more than incidental participant contact
How to Apply
- Apply through your state/territory screening agency
- Provide identification and employment details
- Pay the fee ($80-130, varies by state)
- Wait for processing (2-6 weeks typically)
Why Start Early?
- Screening can take 4-6 weeks
- No registration without clearances
- Delays here delay everything
Pre-Registration Checklist
Before starting your NDIS registration application:
Business Foundation
- Business structure decided and established
- ABN obtained
- Business name registered (if needed)
- Business bank account opened
Insurance
- Public liability insurance obtained
- Professional indemnity insurance obtained
- Workers compensation (if employing)
- Certificates of currency available
Financial Systems
- Accounting software set up
- GST registration completed (if required)
- Bookkeeping processes established
Service Clarity
- Services defined
- Target participants identified
- Delivery model established
- Pricing understood
Compliance Foundations
- Worker screening application submitted
- Understanding of Practice Standards
- Awareness of registration requirements
Timeline: Business Setup to Registration Ready
| Week | Activity |
|---|---|
| 1-2 | Business structure decision, ABN application |
| 2-3 | Business name registration, banking setup |
| 3-4 | Insurance quotes and purchase |
| 4-5 | Worker screening application |
| 5-6 | Accounting setup, GST registration |
| 6-8 | Service definition, pricing, practice standards review |
Total: 6-8 weeks to be genuinely ready to start registration
The Bottom Line
NDIS registration requires a solid business foundation. Rushing to apply before you've properly established your business leads to delays, compliance issues, and frustration.
Take the time to get your business fundamentals right:
- Choose the right structure
- Get proper insurance
- Set up good systems
- Obtain worker screening
These foundations will serve you well throughout your registration journey and beyond.
