ABN and insurance for sole trader NDIS support workers

Many support workers work for themselves. This gives you freedom, but you also run a small business. This guide covers the basics of ABNs, invoices and insurance. It is general information only. Ask a registered tax agent, accountant or insurance broker about your own situation.

Why an ABN matters

An Australian Business Number (ABN) identifies your business. When you work as a sole trader, you usually need one to invoice clients properly.

The Australian Business Register says you need to be running a business to be entitled to an ABN. It also says you can still need one even if your income is below the GST threshold.

Without an ABN, other businesses may have to withhold tax from payments to you. That is one reason most independent support workers get one.

How to get an ABN

You apply through the Australian Business Register, either yourself or through a tax or BAS agent.

1. Check you are eligible. You must be carrying on a business.
2. Have your details ready, including your tax file number if you have one.
3. Apply online through the ABR.
4. Keep your ABN somewhere safe. You will put it on invoices.

You can register for other things at the same time, like GST. Do not guess. Ask an adviser if you are unsure.

GST in simple terms

You must register for GST when your GST turnover reaches the ATO's threshold. The ATO explains how to work this out and sets the current amount. You need an ABN before you register, and you register within a set time once you reach the threshold. See the ATO's page in our sources.

Some NDIS supports are GST-free and some are not. Rules are detailed. Ask a tax agent.

Invoicing plan-managed clients

If a participant is plan-managed, their plan manager pays your invoice. The NDIS guidance says an invoice for a plan-managed participant must include a valid ABN, unless you are exempt. If you are exempt, you give a statement by supplier form.

A good invoice usually shows:

• your name and ABN
• the participant's name
• the date and the time of each support
• what you did
• the price and the total
• how to pay you

Agree on prices in writing before you start. See how to choose a support worker for what a good service agreement includes.

Pricing: what you can charge

Registered providers cannot charge more than NDIS price limits. Unregistered providers can choose to charge above or below the limits, but the participant needs to be happy with that, and plan-managed and self-managed funds must cover it.

Do not guess. Check the NDIS pricing information on ndis.gov.au, which is updated each year. We do not list prices here, because they change.

Insurance to think about

The sources we checked do not set one NDIS insurance rule for every unregistered worker. But many participants, plan managers and platforms ask to see cover. Common types include:

• Public liability. Covers claims if someone is hurt or property is damaged because of your work.
• Professional indemnity. Covers claims if your advice or services cause financial loss or harm.
• Personal accident or income protection. Helps if you are hurt and cannot work.
• Vehicle insurance. Needed if you drive clients. Tell your insurer how you use the vehicle.

Tell your broker that you work in disability support. Ask what is covered, what is not and what the limits are. Keep your certificate of currency up to date. You may be asked to show it.

On Goodo, a certificate of currency is needed for some badges, for example the unregistered route to Verified support coordinator.

Other rules that apply

• Code of Conduct. It applies to you as a sole trader. See NDIS Code of Conduct in plain English.
• Worker screening. Not automatic for unregistered work, but many clients ask. See NDIS Worker Screening Check explained.
• Records. Keep good records of what you did and when. Rules on record keeping are changing, so check ndis.gov.au.
• Employee or contractor. If one company controls your hours and work, you might be an employee in law, not a contractor. Get advice before you sign.

Where to get advice

• The Australian Business Register for ABNs.
• The ATO for tax, GST and super.
• A registered tax agent or accountant.
• An insurance broker.
• The NDIS Commission, for questions about the Code and what you must do as a provider.

A simple start-up checklist

If you are about to start as a sole trader, this list can help you stay on track.

1. Apply for your ABN and keep the number handy.
2. Ask a tax agent or the ATO whether you need to register for GST.
3. Open a separate bank account for your work, so money is easy to track.
4. Talk to an insurance broker and get a quote for the cover you need.
5. Write a simple service agreement you can use with every client.
6. Set up a way to keep invoices, receipts and notes about each shift.
7. Apply for your NDIS Worker Screening Check and finish the orientation module.
8. Put aside money for tax, so a bill does not surprise you.

None of this is hard on its own. It just helps to do it in order. If you feel stuck, ask for help early. Many small business advisers offer free or low-cost first meetings. You can also ask other support workers what worked for them. Just remember that every business is different, so check what applies to you.

About this guide

Goodo is independent. We are not part of, or endorsed by, the NDIA or the NDIS Quality and Safeguards Commission. This is general information, not tax, legal, insurance or financial advice. Rules change, so check ndis.gov.au or call the NDIS on 1800 800 110 about your own situation.