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There are several legislative changes to emerge this year which have had (or will have) a definite impact on NDIS providers.
From delayed processing times introduced earlier in the year, to the new ‘approved’ and ‘excluded’ support lists from early October, and impending Payroll Super requirement in 2026, it’s not unreasonable for providers to be feeling the pressure.
This is especially true for NDIS providers that deliver services that may now be deemed ineligible under the new NDIS guidelines, there is an urgent need to consider the effect this will have on revenue streams and how they can adapt to keep their business viable.
When coupled with ongoing and systemic economic challenges such as higher wages, labour shortages, and rising material costs, it’s imperative for NDIS providers to be more vigilant and strategic in their business operations.
Key areas of focus for NDIS providers
Regardless of whether your business is thriving or struggling to stay afloat, there are certain practices that should never be overlooked.
Particularly in the current environment, staying on top of all of the following could mean the difference between make or break:
Precise invoicing and debt collection – With the potential to wait up to 10 days for an invoice payment, NDIS providers must be absolutely meticulous with their claim submissions. This means having clear and documented claim processes and following them to a tee. The same applies to collecting on outstanding invoices, as carelessness in this area is a common cause of business failure in any sector. 
Clarity on payment terms – Providers can find themselves in a bind when they don’t account for the various payment sources from which funds are coming in. Whether it’s the NDIA directly, or through support coordinators or participants under a self-managed plan, understanding the payment terms your business is operating under or extending to customers will allow you to plan cashflow accordingly.
Effective budgeting – This includes ensuring sufficient funds to pay wages, superannuation, and PAYG withholding. The new Payroll Super change will require businesses to pay employee superannuation guarantees in line with wage payments, so this money can no longer be used for working capital. Aligning these payments now will make the transition much easier and could help you avoid hefty penalties in the future.
Transparency with the ATO – With ATO interest rates reaching levels not seen in decades, it’s critical to stay up-to-date with lodgements and instalments. If this isn’t possible, speak with your accountant about payment plans or the potential for Small Business Restructuring. They can help you liaise with the ATO in a way that will likely provide the best possible outcome.
Sound management of cash reserves – Make sure you retain funds for unexpected costs such as changes to service delivery, staffing, supplies, and so on. In addition, having an overdraft facility is a useful back-up in case a sudden emergency exceeds available funds.
Regular reviews – In times like these, reviewing your cashflow monthly or even fortnightly is very beneficial. Even the slightest change to your business can affect your financial position or your obligations to the ATO, and knowing where you stand at any given time will help you make better strategic decisions.
Find an advisor you can trust
A business advisor who doubles as an expert accountant is a hugely valuable asset for any business, as most successful business owners will attest to.
In addition to being a knowledgeable and objective sounding board, they can:
- Keep you informed about relevant legislative changes
- Conduct a review of your revenue streams
- Offer strategic guidance
- Assess cashflow and budgets
- Run scenario testing
- Manage tax obligations
- Liaise with the ATO on your behalf
At RSM, our team comprises highly experienced accountants and business advisors who also have specialist experience in the NDIS sector. As you navigate these challenging times, you can call on us to assist with any concerns or issues you may be facing – leveraging our expertise to help you identify risks and opportunities and ultimately position your business for success.
FOR MORE INFORMATION
To learn more about RSM's specialist services for NDIS providers, contact your local RSM office.
