NDIS Cancellation Policy — What Providers Can Claim and How to Document It

The NDIS Short Notice Cancellation Policy

Under the NDIS Pricing Arrangements and Price Limits, registered providers can claim a cancellation fee when a participant cancels a support with insufficient notice, provided:

• The cancellation is genuinely short notice — within the threshold set by the NDIS (currently within 2 business days for most supports, 7 days for some specialist supports)
• The provider is unable to find alternative work for the worker during that time
• The cancellation is documented, including the reason if known
• The claim is made using the correct NDIS cancellation support item code

What You Can Claim on a Cancellation

For an eligible short-notice cancellation, you can typically claim up to 100% of the agreed support fee for that session. The claim must use the dedicated NDIS cancellation item code — not the standard support item code — to ensure it is processed correctly by the NDIA.

You cannot claim a cancellation fee if:

• The participant gave sufficient notice (above the threshold)
• The cancellation was due to a hospitalisation or other emergency beyond the participant's control (NDIS has specific rules for these)
• You did not have an active service agreement with the participant
• The cancellation is not documented
• You are billing for a support that was actually delivered, even partly

Service Agreements and Cancellation Clauses

Your service agreement with each participant should clearly state your cancellation policy — the required notice period, what will be charged on short-notice cancellations, and exceptions (such as hospitalisations). This is not optional. Claiming a cancellation fee without the participant having been informed of the policy through a signed service agreement creates a dispute risk.

The service agreement should also specify the method for cancelling — phone call, text, email — and the time from which notice is calculated. If a participant texts at 11pm to cancel a 9am shift the next morning, when does the notice clock start?

Documenting Cancellations for NDIS Claims

For every cancellation claim, retain documentation that shows:

• The date and time the cancellation was received
• The method of cancellation (phone, text, email — include a copy or reference)
• The date and time of the scheduled support
• The reason for cancellation if provided by the participant
• Whether alternative work was found for the worker
• The claim amount and item code used

This documentation may be reviewed by the NDIA, the participant's plan manager, or an auditor. Without it, your claim is vulnerable to a repayment request.

Handling Participants with Frequent Cancellations

Some participants cancel regularly. This affects your cash flow, your staff's income, and your operational planning. Approaches that work:

• Review the service agreement. If cancellations are frequent, discuss the pattern with the participant or their support coordinator. It may indicate that the support is no longer working for them.
• Claim every eligible cancellation. Providers who feel awkward claiming cancellation fees are subsidising the NDIS from their own operations. Claim every eligible cancellation — that is what the policy is for.
• Track cancellation patterns. If a particular participant cancels more than 30% of scheduled supports, that is a business sustainability issue and a potential signal that the support plan needs review.
• Consider exit provisions. Your service agreement should include provisions for ending the service arrangement if cancellations become operationally unmanageable.

Cancellations vs No-Shows

A no-show is where the participant or their representative does not cancel and is simply not present when the worker arrives. This is typically treated differently from a cancellation and may have different claim requirements. Check the NDIS Pricing Arrangements for the current rules on no-shows, as they have been clarified and updated at various points.