Cutting through the confusion of NDIS invoicing

Cutting through the confusion of NDIS invoicing

How accurate is your NDIS invoicing? Are plan managers refusing to pay your NDIS invoices? Do you have NDIS debtor issues?

All providers should ensure that their invoices are correct to avoid breaching compliance requirements and the Code of Conduct. However, the invoicing process is complex, and mistakes are easy to make.

Here are a few examples - and some tips for getting it right!

Common pitfalls of NDIS invoicing errors we often see include:

• Using outdated and/or incorrect service codes and prices.
• Charging over the NDIS price limits.
• Use of group item codes rather than individual codes.
• Including non-NDIS charges – such as administration and overhead expenses already incorporated into the NDIS prices.
• Unclear travel expenses.
• Missing fields and information.

Invoice considerations for NDIS providers

Even innocent mistakes can lead to payment refusals or, at worst, breaches of the pricing rules and potentially costly penalties.

Here are the key elements to consider:

• Your invoices must reflect the services and charges outlined in the Service Agreement signed by the participant.
• Your service pricing should align with what you usually charge non-NDIS clients (or at least be no higher.) If you do need to charge more for participants, you must be able to justify the discrepancy.
• The rules regarding fees and charges now come under the Code of Conduct for all providers – refer to our previous article for more information on pricing compliance.
• All invoices must accurately represent the language and purpose of the relevant category. Broadly speaking, these break down into:
  • Core supports: Services to help the participant with everyday activities. Includes lower-cost assistive technologies and consumables.
  • Capacity building: Helps the participant build independence and skills.
  • Capital supports: Such as higher-cost equipment and vehicle modifications.
• An invoice can include multiple supports but should be for one participant only.
• You should be aware of which short-notice cancellation policy applies to your service and ensure it is captured in your Service Agreement (unless an exemption is in place).
• When claiming higher travel rates due to operating in a regional area, denote the Modified Monash Model (MMM). This model categorises areas as metropolitan, rural, or remote, allowing for accurate verification of travel time.
• If appropriate to the NDIS Plan, you can charge for non-face-to-face time spent assisting the participant and writing reports explaining the participant's progress. Some non-face-to-face supports, such as research, can be claimed for capacity building but not core supports. 

Do not include the following in your invoices:

• Labelling references to non-NDIS charges – such as administration and planning.
• Other non-NDIS charges, such as meals or apparel, may lead to a request for their removal from the invoice. However, some exceptions exist, such as for meals or short-term accommodation.

Invoice layouts and inclusions

Missing fields can also lead to issues. Your invoices should include:

• Your NDIS business name and ABN.
• The participant's name and NDIS number.
• Participant's address (in the case of specialist disability accommodation.)
• Support item numbers.
• The amount and quantity for each unit of support.
• The claim type (including if it was for short-notice cancellation).
• Date of support delivery.
• Total invoice amount, including any GST component.

With the recent crackdown on non-compliant invoices, revamping your invoicing process is more important than ever. The federal government has also recently passed legislation that will impact the rules that govern NDIS invoicing. As these changes are implemented, we expect further clarity and directions from the NDIA.

Fore more information

Talk to us about how we can help you cut through the complexity and ensure your NDIS invoicing is accurate and aligns with any changes.