NDIS Provider Cancellation Policy: Short Notice and No-Show Rules Explained

The NDIS Cancellation Rules

The NDIS cancellation framework is set out in the NDIS Pricing Arrangements and Price Limits document, published by the NDIA. The rules exist to balance two competing interests: protecting participants from being unfairly charged when they genuinely cannot attend, and protecting providers from the financial impact of last-minute cancellations that leave workers idle and unpaid.

The key principles are:

• Participants should give providers reasonable notice when cancelling scheduled supports
• Providers can charge a fee for short notice cancellations (less than 2 clear business days)
• The cancellation charge is capped at 90% of the agreed price
• Providers must make reasonable efforts to find alternative productive work for the affected worker
• The cancellation policy must be clearly documented in the service agreement
• Not all support items allow cancellation charges — check the Support Catalogue

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What Counts as Short Notice?

Under the NDIS Pricing Arrangements, a short notice cancellation occurs when a participant cancels a scheduled support with less than 2 clear business days' notice before the start of the scheduled support.

How to count "2 clear business days"

The phrase "2 clear business days" means two full business days between the cancellation and the scheduled support. The day of cancellation and the day of the scheduled support do not count.

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The 90% Charge: How It Works

When a participant cancels with less than 2 clear business days' notice, you can charge up to 90% of the agreed price for the scheduled support. Not 100% — 90%.

Calculating the cancellation charge

The cancellation charge is based on the price that would have been charged had the support been delivered as scheduled. For example:

• Scheduled support: 3 hours of personal care at $65.47/hour = $196.41
• Short notice cancellation charge: $196.41 x 90% = $176.77

Conditions for charging the 90% rate

You cannot simply charge 90% every time someone cancels. There are conditions:

1. The cancellation must be short notice — less than 2 clear business days
2. The cancellation policy must be in the service agreement — the participant must have agreed to these terms in writing
3. You must make reasonable efforts to fill the gap — the NDIS expects you to try to reassign the worker to another participant or productive task before charging the full cancellation fee
4. The support item must allow cancellation charges — check the Support Catalogue attribute

What "reasonable efforts" means in practice

The NDIS does not define "reasonable efforts" precisely, but in practice it means:

• Attempting to offer the worker's time to another participant
• Assigning the worker to administrative tasks, training, or other productive work
• Documenting what efforts were made, even if they were unsuccessful

In reality, most small providers with limited participant pools will not be able to fill a cancellation at short notice. The key is to document that you tried. A simple note like "Attempted to reassign worker to other participants — no alternative booking available" is sufficient.

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No-Shows: When the Participant Does Not Attend

A no-show occurs when the participant does not attend the scheduled support and does not notify the provider. Under the NDIS Pricing Arrangements, no-shows are treated the same as short notice cancellations.

No-show claiming rules

• You can charge up to 90% of the agreed price
• The same conditions apply — service agreement terms, reasonable efforts to reassign
• You must document the no-show: when the worker arrived, how long they waited, attempts to contact the participant

How to handle repeated no-shows

Repeated no-shows are a common challenge for NDIS providers. If a participant consistently fails to attend scheduled supports, you should:

1. Document every instance — date, time, attempts to contact
2. Discuss with the participant (and their support coordinator, family, or guardian) — there may be an underlying reason (transport issues, health changes, anxiety)
3. Review the service agreement — consider whether the scheduled times need to change
4. Consider whether a pattern of no-shows constitutes a risk — if the participant is vulnerable and consistently not receiving scheduled supports, this may need to be escalated as a safeguarding concern
5. As a last resort, consider ending the service agreement — if reasonable efforts to resolve the issue have failed, you may need to terminate the agreement with appropriate notice (typically 14–28 days as specified in your service agreement)

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When the Provider Cancels

Cancellations are not always one-sided. Providers sometimes need to cancel shifts — due to worker illness, vehicle breakdown, or other operational issues. The rules here are different.

Provider cancellation obligations

• You cannot charge the participant when you cancel — only participant-initiated cancellations attract a charge
• You must give the participant as much notice as possible
• You should make reasonable efforts to provide a replacement worker or reschedule the support
• If the support is critical (medication administration, essential personal care), you have a duty of care to ensure the participant is not left without necessary support
• Repeated provider cancellations may be raised as a concern by auditors — it suggests inadequate workforce management or contingency planning

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What Your Service Agreement Must Say About Cancellations

Your cancellation policy is only enforceable if it is documented in the service agreement and the participant (or their nominee/guardian) has agreed to it. The NDIS Practice Standards require transparency about pricing, charges, and terms.

Minimum cancellation clause requirements

• The notice period required to avoid a cancellation charge (2 clear business days)
• The amount that will be charged for a short notice cancellation (up to 90% of the agreed price)
• What constitutes a no-show and that the same charge applies
• How cancellations should be communicated (phone, SMS, email) and to whom
• Circumstances where the cancellation charge may be waived (e.g., medical emergency, hospitalisation)
• The provider's obligations when cancelling (notice, replacement worker, alternative arrangements)
• The process for ending the service agreement, including notice period

Waiver circumstances

Most providers include reasonable waiver provisions in their cancellation policy. Common circumstances where the cancellation charge is waived include:

• Medical emergency or hospitalisation of the participant
• Bereavement
• Natural disaster or emergency affecting the participant's home
• First-time cancellation (some providers offer one "free" cancellation to build goodwill)

Having clear waiver provisions in your service agreement demonstrates participant-centred practice and is viewed favourably by auditors.

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Documenting Cancellations for Audit

Auditors review cancellation practices as part of the financial management (Core Module Outcome 2.5) and access to supports (Core Module Outcome 3.1) assessment. Poor cancellation documentation is a common audit finding.

What to record for every cancellation

Keep a cancellation register or log that tracks all cancellations chronologically. This makes it easy for auditors to review your cancellation practices in one place rather than searching through individual participant files.

Good record keeping extends to your daily shift notes as well. Our free NDIS Notes Rewriter helps support workers write compliant progress notes that meet audit standards.