ATO Government Payment Program: What Every NDIS Provider Should Know

As an NDIS provider, your main focus is delivering quality supports to people with disability. But alongside service agreements, claims, and compliance with the NDIS Practice Standards, you also need to meet your obligations with the Australian Taxation Office (ATO) if you are a business owner. 

The ATO works with government agencies through its Government Payments Program (GPP). This program supports providers who receive government monies, including NDIS payments, to meet their tax, superannuation and registration obligations. 

This article is intended for support and information, and service providers should seek further advice from their accountants, bookkeeper or directly with the ATO. Understanding what is required can help you avoid compliance issues and protect your business in the long term. 

NDIS providers and the ATO 

As guided in the NDIS Pricing Arrangements, most supports and services provided to participants are GST-free.  Providers receiving payments from a government program, such as the NDIS, are generally required to consider this as assessable income for tax purposes. You are responsible for reporting that income correctly and meeting your obligations, including: 

• Lodging tax returns on time 

• Reporting all government payments you receive 

• Paying any tax you owe 

• Meeting superannuation guarantee requirements for eligible workers 

The ATO uses data from participating agencies to identify risks, trends and potential non-compliance. This helps ensure scheme integrity and compliant claiming of NDIS funds.

Most providers do the right thing, and the Government Payments Program (GPP) helps maintain fairness across the sector. 

Staying proactive 

Being organised throughout the year supports you in keeping track of your records and provision of any information should the NDIA request this from you. Here are some practical steps you can take to keep on top of administration: 

• Keep clear and accurate financial records 

• Reconcile NDIS claims with bank deposits 

• Ensure your ABN and GST registrations are up to date 

• Stay on top of BAS and super lodgements 

How to report income earned from the NDIS 

How you report income earned through the delivery of NDIS supports and services depends on your business structure: 

• Individuals and sole traders report income in the business and professional items schedule P8 Income - label O Gross payments - labour hire or other specified payments. 

• Companies report income at item 6 Income - label C Other sales of goods and services. 

• Partnerships and trusts report income at item 5 Income - label H Other business income. 

Always refer to the relevant tax return instructions and seek professional advice if you are unsure about your specific circumstances. 

Why it matters 

Compliance is not just about avoiding penalties. It also strengthens trust in the NDIS and helps ensure public funds are used appropriately.  

Staying across your ATO obligations is part of running a sustainable NDIS business, allowing the scheme to strength integrity. When your tax and super responsibilities are in order, you can focus on delivering quality supports with confidence to your clients on the NDIS. 

For more information, read the ATO article about the Government Payments Program.