NDIS Short Notice Cancellation Policy Update: What Providers Need to Know

The National Disability Insurance Scheme (NDIS) continues to evolve, introducing updates to ensure services are both participant-centred and operationally sustainable. One of the recent major updates affecting registered providers relates to short notice cancellations. This change aims to strike a fair balance—supporting NDIS participants while also protecting the financial stability of providers.

This blog explains what’s changed in the short notice cancellation policy, how it affects your service agreements, and how providers can adjust their processes to remain compliant with the NDIS Practice Standards. We also look at how tools like NDIS internal auditing, gap analysis, and guidance from an NDIS consultant can help you stay on track.

Understanding the Role of the NDIS Commission

Before diving into the changes, it's important to understand the role of the NDIS Quality and Safeguards Commission. The Commission oversees provider behaviour, promotes quality services, investigates complaints, and enforces compliance with regulations under the NDIS Act 2013.

Changes such as this new short notice cancellation policy fall under the Commission’s wider goal to protect participant rights while ensuring that providers meet their obligations under the law.

What is a Short Notice Cancellation?

A short notice cancellation happens when an NDIS participant cancels a scheduled support with little to no warning—too late for the provider to fill the spot with another client. This can lead to loss of income and disrupt service planning.

Previously, the rules around what counted as “short notice” were vague. Now, the NDIS short notice cancellation policy has been revised to give clearer guidance to both providers and participants.

You can access the official NDIS document on this update here.

What Has Changed in the NDIS Short Notice Cancellation Policy?

The new policy came into effect to provide more structured rules around what is considered a short notice cancellation and what providers can claim. Here's a breakdown of the major changes:

1. Clearer Definition

Previously, providers had some discretion when determining what constituted “short notice.” Now, the NDIS has defined it as a cancellation that occurs less than seven clear days before the scheduled service.

2. Updated Timeframe

Before, providers could charge for cancellations made within 48 hours. The updated policy extends this timeframe to seven days for some supports—particularly where short notice makes it difficult to fill the gap or redeploy resources.

3. 100% Claimable Fee

Under the updated guidelines, providers can now claim 100% of the agreed fee for services that are cancelled within this short notice window—provided they follow the correct process and have included this clause in the participant’s service agreement.

Special Considerations: When Are Cancellation Fees Waived?

While the new policy gives providers more power to claim fees for short notice cancellations, there are exceptions. If a participant cancels due to an emergency such as hospitalisation, or if they have a valid medical reason, cancellation charges may not apply.

This is where documentation becomes important. Providers need to keep accurate records of:

• The reason for cancellation
• Date and time the cancellation was made
• Communication history with the participant
  

This evidence is vital during audits and when making claims through the NDIS portal.

The Importance of Strong Service Agreements

With these changes in place, service agreements must clearly outline the provider’s cancellation policy. If a participant is not made aware of the provider’s right to charge for short notice cancellations, the claim could be rejected.

You can use NDIS policy templates from Posity Online to update your documents quickly and stay compliant. These templates reflect the most recent NDIS changes and can be easily customised for your business.

Why These Changes Matter for Providers

For registered NDIS providers, cancellation fees aren’t just about recouping money—they help ensure business stability. Many small-to-medium providers operate on tight margins. Constant cancellations without compensation can lead to reduced service quality, staff burnout, and even business closure.

This policy empowers providers to safeguard their revenue—but only if they follow the rules and document every step.

To get it right, it's smart to invest in regular internal audits, staff training, and the help of NDIS approved quality auditors. This ensures your documentation, communication, and invoicing processes align with NDIS expectations.

How to Stay Compliant With the New Cancellation Rules

Compliance isn’t just about ticking boxes—it’s about building a sustainable and ethical business. Here’s how you can stay aligned with the updated short notice cancellation policy:

1. Review Your Policies Through an Internal Audit

An NDIS internal auditor can assess your existing policies and highlight any areas that don’t align with the current NDIS rules. This step is crucial, especially if you haven't updated your documentation in the last 6–12 months.

You can access expert audit support through Posity Online’s internal audit services.

2. Train Staff with Updated Compliance Standards

Your front-line staff are the first to deal with cancellation scenarios. Make sure they’re trained using NDIS auditor training to document and respond to cancellations properly.

Training also helps staff understand what qualifies as a valid cancellation and what doesn’t—reducing mistakes and protecting your claims.

3. Engage an NDIS Consultant

A skilled NDIS consultant can assist with service agreement updates, compliance strategies, and even NDIS business registration for new providers. They’ll guide you through every step, helping you understand not only what to do but why it's important.

4. Run a Gap Analysis

A gap analysis is a detailed review of where your current processes fall short of best practice or compliance requirements. This is especially important for billing, documentation, and participant communication.

By running a gap analysis, providers can improve their processes before any issues escalate into non-compliance.

Billing and Claiming for Cancellations Under the New Policy

To make a valid claim for a short notice cancellation, providers must:

• Have a signed service agreement stating the cancellation policy
• Document the cancellation event clearly
• Submit the claim using the correct service code and pricing
• Keep all evidence in case of audit or complaint
  

The claim process takes place through the MyPlace Provider Portal, and the fee must not exceed the amount listed in the latest NDIS price guide.

Also, providers must ensure that any GST included in charges follows ATO guidelines. Most supports under the NDIS are GST-free, but it’s always best to confirm through the Australian Taxation Office.

How to Apply for NDIS or Become a Registered Provider

If you’re just starting your journey as a provider and want to know how to apply for NDIS registration, visit Posity Online’s registration support.

The process involves:

• Preparing your business documents
• Demonstrating compliance with the NDIS Practice Standards
• Undergoing an audit from NDIS approved quality auditors
  

This is a significant step, and having expert support can make the journey much easier.

Preparing for NDIS Audits Related to Cancellation Policies

Under the updated policy, NDIS internal auditors and Commission reviewers will be looking for:

• Properly signed service agreements
• Logs of cancellation records
• Evidence that charges were fair and properly claimed
• Staff training records on the cancellation process
  

You can improve audit outcomes by using this NDIS-approved documentation template and engaging in regular business coaching.

Bottomline: Making the Most of the Cancellation Policy Update

The NDIS short notice cancellation policy isn’t just about protecting providers—it’s also about fairness and clarity for everyone. With proper communication, well-documented service agreements, and sound compliance practices, this change can work in everyone’s favour.

Providers who invest in NDIS auditor training, work with NDIS consultants, and carry out internal audits are far more likely to avoid rejected claims and stay fully compliant.

If you need help getting started, Posity Online offers everything from policy templates to consulting services—ensuring you stay up to date with every change the NDIS introduces.