Is a conflict of interest policy a mandatory requirement for NDIS registration?

Yes. The NDIS Practice Standards (Core Module) require registered providers to have documented governance arrangements that address conflicts of interest. The NDIS Code of Conduct also obligates workers and providers to act with integrity and avoid situations where personal interests improperly influence participant outcomes. An auditor will assess both the existence of the policy and evidence that it is actively implemented.

What is the difference between an actual, perceived and potential conflict of interest?

An actual conflict exists when a personal or business interest currently conflicts with a provider's duty to a participant. A perceived conflict is one that a reasonable observer would believe could improperly influence decisions, even if the person involved does not believe it does. A potential conflict is a situation that may develop into an actual or perceived conflict in the future. NDIS policies must address all three categories.

Do SIL providers face specific conflict of interest obligations?

Yes. SIL providers face a heightened risk of structural conflicts — particularly where the same organisation both assesses a participant's support needs and delivers those supports. The NDIS Commission expects SIL providers to have explicit policy provisions addressing this dual-role conflict, including ensuring participants have access to independent advocacy or advice when their support arrangements are being determined.

Does the conflict of interest policy need to cover board members and directors?

Absolutely. Governing body members hold significant decision-making power and are expressly covered by the NDIS Code of Conduct. The policy must specify that directors and board members must declare conflicts at relevant meetings, abstain from discussion and voting on affected matters, and have their declarations recorded in board minutes and the conflict of interest register.

How often does a conflict of interest policy need to be reviewed?

The NDIS Practice Standards require providers to have systems for continuous improvement and policy review. While the Standards do not specify a mandatory minimum interval for this specific policy, best practice — and common auditor expectation — is review at least every two years, or sooner following a significant incident, organisational change, or amendment to the NDIS regulatory framework.

What happens if an NDIS provider fails to manage a conflict of interest?

The NDIS Commission can take a range of compliance actions against providers who breach the Practice Standards or Code of Conduct, including issuing compliance notices, imposing conditions on registration, suspending or revoking registration, or referring matters for further investigation. Workers can also be found to have individually breached the Code of Conduct, which can affect their ability to work in the sector.

NDIS conflict of interest policy checklist for new providers

Why a conflict of interest policy is mandatory for NDIS providers

Every registered NDIS provider — including those seeking registration for the first time under the strengthened 2026 framework — must demonstrate robust governance arrangements. Managing conflicts of interest sits at the heart of those arrangements. The NDIS Practice Standards (Core Module, Quality Management) and the NDIS Code of Conduct both impose obligations on providers and their workers to act with integrity and to avoid situations where personal, financial or business interests could improperly influence decisions affecting participants.

For Supported Independent Living (SIL) providers in particular, conflicts of interest are a heightened concern. A provider who both assesses a participant's support needs and delivers those supports faces an inherent structural conflict. The NDIS Commission expects providers to have transparent, documented processes to surface and manage such conflicts — not merely acknowledge that they exist.

Failing to have an adequate policy is a common finding at quality audits and can delay or block your registration. This checklist walks through every element auditors expect to see.

The NDIS conflict of interest policy checklist

Work through each item below and confirm your policy and supporting documents satisfy it before submitting your audit evidence package.

1. Policy foundations

The policy is a standalone written document (or a clearly defined section of a broader governance framework) with a title, version number, effective date and scheduled review date.
It explicitly references the NDIS Act 2013, the NDIS (Provider Registration and Practice Standards) Rules 2018 and the NDIS Code of Conduct as the regulatory basis for the policy.
The policy scope clearly covers the registered entity, all employees, contractors, volunteers, directors and governing body members.
Key terms — "conflict of interest", "actual conflict", "perceived conflict" and "potential conflict" — are defined in plain English.

2. Identifying conflicts of interest

The policy provides a non-exhaustive list of situations that commonly give rise to conflicts, including: financial interests in related entities, dual roles (assessor and service provider), personal relationships with participants or their families, employment of family members, referral arrangements with financial incentives, and ownership of property leased to participants.
For SIL providers: the policy specifically addresses the conflict that arises when the provider influences or prepares a participant's SIL assessment or Support Plan while also being the proposed support provider.
Staff are given practical examples relevant to their day-to-day roles — not just abstract definitions.

3. Disclosure obligations

The policy requires workers and governing body members to disclose any actual, perceived or potential conflict as soon as they become aware of it.
A clear disclosure mechanism is described: who to notify (typically the manager or nominated supervisor), the timeframe for disclosure, and the acceptable format (verbal followed by written, or written from the outset).
The policy confirms disclosures are recorded in a Conflict of Interest Register (see item 5 below).
Participants and their nominees are informed, in an accessible format, when a conflict of interest exists that may affect their service delivery or choice of provider.

4. Management and mitigation strategies

The policy outlines the range of responses available once a conflict is disclosed, including: removal from the decision-making process, substitution of an independent person to make the decision, enhanced oversight or monitoring, restructuring the relationship, or declining to proceed with the service arrangement.
The policy makes clear that doing nothing (leaving the conflict unmanaged) is not an acceptable outcome.
For governing body conflicts: the policy requires the conflicted member to declare the conflict at the start of any relevant meeting, abstain from discussion and voting, and leave the room if directed by the chair.
The policy addresses the process for documenting the management action taken and the rationale for that action.

5. The conflict of interest register

A register template or live register is maintained and includes: the name and role of the person disclosing, the nature of the conflict, the date of disclosure, the management action taken, the person responsible for oversight, and the date of resolution or next review.
The register is reviewed at least annually (or more frequently where active conflicts are recorded) by a senior manager or the governing body.
The register is treated as a confidential document with controlled access, while still being available for audit purposes.

6. Training and awareness

All workers receive induction training that covers the policy, the types of conflicts relevant to their role, and how to make a disclosure.
Refresher training is provided at a defined frequency (at minimum annually) and records of completion are retained.
Governing body members receive separate briefing on their heightened obligations when conflicts arise in board-level decisions.

7. Integration with other policies

The conflict of interest policy cross-references: the Code of Conduct policy, the Whistleblower / Complaints policy, the Incident Management policy and the Procurement and Purchasing policy (where applicable).
Where a conflict of interest involves a potential breach of the Code of Conduct, the policy is explicit that the Code of Conduct procedure also applies.

8. Review and continuous improvement

The policy states a review cycle (at minimum every two years, or sooner following a material change to the organisation, a significant conflict incident, or a change in the regulatory framework).
The review process involves the governing body or senior leadership — not just the person who drafted the policy.
Outcomes of reviews and any amendments are documented and communicated to relevant staff.

Common non-conformances found at audit

Quality auditors regularly identify the following gaps in new provider submissions:

A policy that exists but shows no evidence of use. The register is blank, no disclosures have been recorded, and staff cannot explain the process. Auditors treat this as non-implementation, not compliance.
Conflicts defined too narrowly. Policies that only address financial interests miss personal relationship and structural conflicts — particularly relevant for SIL providers who also arrange or assess supports.
No participant-facing disclosure process. The Code of Conduct places obligations on workers directly. Where a worker's conflict could affect a participant's choice or outcomes, the participant must be informed.
Governing body members omitted from scope. Directors and board members must be subject to the policy. Many new provider policies cover staff but are silent on the people with the most governance power.
No link to procurement or referral arrangements. Receiving referrals from an entity in which a director holds a financial interest is a classic unmanaged conflict. The policy must address these commercial relationships explicitly.

A simple policy excerpt template

The following is a realistic template excerpt you can adapt. Replace bracketed text with your organisation's details.

Policy element	Example wording
Purpose	[Organisation name] is committed to maintaining the trust of participants, the NDIS Commission and the community. This policy establishes how we identify, disclose and manage conflicts of interest to protect participant outcomes and our organisational integrity.
Disclosure requirement	Any worker, contractor or governing body member who identifies an actual, perceived or potential conflict of interest must disclose it to their line manager (or, if the conflict involves the line manager, to the Chief Executive Officer) as soon as practicable and in writing within two business days.
Management action	The receiving manager will assess the disclosure and determine an appropriate management response within five business days. The response, and the rationale for it, will be recorded in the Conflict of Interest Register. Where no action is required, the reason will be documented.
Participant notification	Where a conflict of interest may affect a participant's service arrangement, choice of provider or support outcomes, the participant (and their nominated representative, where applicable) will be informed in writing in accessible language before any affected decision is made.

Getting audit-ready: pulling the documents together

A single policy is rarely sufficient. Auditors expect a suite of interconnected documents — the policy, the register, training records, meeting minutes showing the policy has been actioned, and participant communication templates. If you are building your compliance document library from scratch, the 74-document audit-ready SIL compliance kit at ndiscompliant.com.au includes a ready-to-customise conflict of interest policy, register template and supporting governance documents, which can save considerable time at registration stage.

Before your audit date, conduct an internal walk-through: ask a worker who is not in management to explain what they would do if they discovered a conflict. If they cannot answer confidently, your training records and implementation evidence need further work.

Important: This article provides general guidance about NDIS compliance requirements. It is not legal or professional advice. Requirements may change as the NDIS Commission updates its policies and Practice Standards. Always verify current requirements with the NDIS Quality and Safeguards Commission or a registered NDIS consultant before making compliance decisions.