The National Disability Insurance Scheme (NDIS) is the Australian government’s way of supporting people with disabilities. More specifically, it funds costs for eligible Australians with permanent and significant disability, and their families/carers, with supports and services needed to address their disability needs and help them to live an independent life.
But, while the NDIS may help fund Participants; Providers still need to put in the work and money to get their business off the ground. A process that is not cheap by any means.
Discover today how much it’ll cost to start as an NDIS Provider.
Associated Costs
There are a series of fees associated with becoming an NDIS Provider. The cost will differ depending on the size and type of your business, the state you are located in, and whether you are applying as an individual or organisation.
Audit Costs
You must be audited by a third-party approved quality auditor to determine if you comply with the NDIS practice standards. The cost of an audit depends on the size of your organisation and the level of complexity in the services you provide. In general, audits can cost anywhere from $1,000 to $10,000.
Insurance and Legal Costs
NDIS Providers must have the appropriate insurance, including public liability and professional indemnity insurance. Depending on your business structure and services, these can cost anywhere from $500 to $3,000 annually. Legal fees may also be necessary to ensure compliance with all relevant laws, which can add additional costs.
Worker Screening and Training Costs
All workers should be screened by NDIS worker screening, involving background checks and orientation. Screening costs are approximately $100 for each worker, and you might have to allocate funds for staff training, which can cost between $200 and $2,000 per individual, depending on the training course.
How Much Does it Cost to Set Up an NDIS Business?
Setting up an NDIS business involves registration costs and various other financial considerations. Here’s a breakdown of the key expenses you’ll face:
Business Structure Setup
The initial step in establishing your business is choosing your structure: sole trader, partnership, or company. Establishing a sole trader is the cheapest, with a small registration fee (typically around $100). However, if you choose to form a company, you could look at costs of between $500 and $1,500 for company registration.
Office Setup
Whether you’re working from home or setting up an office, the costs of office space, furniture, and equipment should be considered. Renting office space can cost anywhere from $1,000 to $4,000 per month, depending on the location and size. Office furniture and basic supplies can add $2,000 to $5,000.
Technology and Software
Operating an NDIS business requires various technology tools. These could be client management software, invoicing software, and databases for service tracking. Software fees can be pretty expensive based on the features you need, but Providers usually pay between $1,000 and $5,000 per year in software subscriptions. You will also need computers, phones, and other technology, costing anywhere from $2,000 to $5,000 in startup fees.
Staffing Costs
Employing staff or contractors is critical to delivering NDIS services. Staffing expenses can be substantial, with salaries for trained support workers between $50,000 and $70,000 annually, depending on your location and the services you provide. On top of that, you’ll have to factor in superannuation, payroll tax, and other employment costs.
Marketing and Promotion
Promoting your NDIS business is central to finding clients. The initial promotion cost of creating a website and placing digital advertisements or printed promotional materials could be $2,000 to $5,000. You should also consider a budget for networking and attending NDIS seminars, which can reach $2,000 to $3,000 annually.
Ongoing Operational Costs
Daily operational costs include utilities, internet services, insurance premiums, and general administrative fees. These range from $1,000 to $3,000 monthly, depending on the size of your operations.
Considering these different factors, the overall cost of establishing an NDIS business can be anywhere from $10,000 to $50,000 or more. Remember that this initial investment may differ significantly based on the size of your business, the services you provide, and where you are located.
How to Minimise Costs?
With all these business costs, it’s crucial for Providers to work smarter- not harder, by minimising expenses whenever possible.
Here are three strategies to help your business save money:
Collaborate with Other Providers
You are not alone in this, and you don’t have to provide every service yourself. Many Providers offer community-based services. By working together with other Providers, you can generate goodwill and maintain a positive presence in your local communities.
Invest Wisely
“The poor man must buy the same shoes over and over, while the rich man invests in one good pair.”
Although it may seem tempting to cut corners and save money in the short term, it is usually more beneficial to invest in high-quality items from the beginning rather than repeatedly purchasing low-quality alternatives.
Utilise Government Resources
As an NDIS Registered Provider, you may have access to a variety of government grants and resources from the NDIA. Occasionally, the NDIA invites key disability-related services to participate in grant opportunities to help enhance their offerings.
Services Australia advertises these grants on the AusTender website, where you can also view all of the latest Australian business opportunities.
Conclusion
Becoming an NDIS Provider can be costly, as you need to cover expenses such as staff salaries, advertising, and especially auditing fees. Therefore, it’s essential to carefully plan for all these costs when designing your budget and operational plan.
However, if you follow the necessary steps and plan ahead for such costs, the rewards can be significant. Working as an NDIS Provider can truly fulfill your life and leave you with a legacy of satisfied clients and workers. Start planning today to join a distinguished group of businesses dedicated to making the world a better place!
FAQs
How much does it cost to register with NDIS?
There are several costs associated with becoming an NDIS Provider, such as business registration, audits, insurance, screening of workers, and training. It can cost anywhere between $5,000 and $20,000, depending on the scope of your services and the location.
How Much Money Can You Make Being an NDIS Provider?
Income as an NDIS Provider depends on the type of services provided, the number of clients, and the pricing structure.. NDIS payment levels differ based on a variety of factors, but Providers can make good money with a stable client base.
How Do I Start My Own Registered NDIS Business?
Opening up an NDIS business entails deciding on a business structure, establishing your office, recruiting competent staff, maintaining compliance with NDIS standards and registering as an NDIS Provider. One needs to be familiar with the NDIS structure and demand in the market.
What are the qualifications for becoming an NDIS Provider?
NDIS Providers must meet specific qualifications depending on the services they offer. Generally, you’ll need the relevant professional qualifications, experience, and training to provide disability support services and adhere to NDIS standards.
How Long Does It Take to Become an NDIS Provider?
The NDIS Provider registration process can range from several weeks to several months, depending on the complexity of the services and the audit process. Avaana are the NDIS
