The 2024-25 Pricing Arrangements brought a change to how short notice cancellations are to be claimed. Things are a little more complex now, which is why it’s a good time to dust off service agreement and invoice templates.
Queries about cancellation charges contribute to a large proportion of the reasons why an invoice might be delayed or disputed by a participant. Being clear and compliant with NDIS guidelines will lead to a better working relationship with participants and their families.
The Rules
The NDIS Pricing Arrangements and Price Limits have a suite of requirements that must be met before a claim can be made for a short notice cancellation, and the required notice period varies depending on whether the support is a disability support work or not.
For disability support work, providers may claim for 100% of the agreed fee for their service if given less than 7 days’ notice.
For non-disability support work, such as therapy appointments, the notice period is 2 clear business days (note the difference between days and business days).
For both types, the following also applies:
The NDIS Pricing Arrangements and Price Limits document indicates that providers can claim for a Short Notice Cancellation - 7 clear business days, in respect of that support item.
This means that some supports are not eligible for cancellation fees, such as Activity-Based Transport.
The provider was not able to find alternative billable work for the relevant worker and are required to pay the worker for the time that would have been spent providing the support.
A bit trickier to determine, but it makes sense. Cancellation charges allow companies to avoid having to pay staff for work that cannot be funded. However, if the staff that were going to deliver the now-cancelled shifts have been successfully reallocated to other work, claiming the cancellation may be seen as double-dipping.
Providers should document the terms of short notice cancellations polices in participant service agreements.
This is a simple one. Clearly outlining cancellation terms means that disputes may be less likely to arise. It is important to note that providers cannot impose terms or conditions that are not in line with the Pricing Arrangements.