There is so much hoohah about invoicing when the answer is actually really simple.
Do you deliver service in the NDIS space? Do you think or have you been told that you don’t have to itemise your invoice? Well it’s not just for NDIA Compliance but also ATO Law and Consumer Law that invoices must have the right information.
Let’s be real for a second – because getting your invoices paid is important!
Do you buy groceries? Well everyone has to eat, so I bet you do! Take a look at your receipt (Tax Invoice) next time and what you bought. Did you buy three of the same brand but all different flavours? Were they grouped as the one item or itemised into the different flavours? I know the answer. Do you?
What about getting your car serviced? Well you should as your vehicle now needs to be in a roadworthy condition at all times as a provider or worker. But I digress… check your Tax Invoice next time. Did they invoice for a total amount or did they itemise it?
These are two different industries but they itemise their invoices. Why?
Because it is the Law!
Whether you are a registered provider or not, there is information that is required on your invoices. This is the Law!
But which Law is it? Well to be more precise, it is encompassed in two laws. ATO Law and Consumer Law. The NDIS Act 2013 just requires you to comply with those laws, and then it asks you for a few more things… but we will get to that later.
So what is it that is needed?!
Some of the information is expected to be there for Taxation purposes while others are there for Australian Consumer Law. Then lastly other information is required for compliance purposes when delivering services to NDIS Participants.
Anyone delivering Service to NDIS Participants is a NDIS Provider regardless of registration status. Yes sometimes you may not know if they are self-managing their NDIS Plan but most of the following is just standard practice anyway.
As a business you are obligated to know your requirements as a registered Business in Australia.
As we are not Tax Agents we cannot advise what those obligations are, however, here is some useful information with links to the source of the information that will help you get started.
ATO Requirements for Invoices / Tax Invoices
First of all there is a difference between an Invoice and a Tax Invoice to understand this refer to here https://www.ato.gov.au/Business/Record-keeping-for-business/Setting-up-and-managing-records/Setting-up-your-business-invoices/ and https://www.ato.gov.au/Business/GST/Registering-for-GST/
The information required for both an Invoice and Tax Invoice is, however, the same and includes:
- document is intended to be an invoice if not registered for GST or tax invoice if registered for GST
- seller’s identity
- seller’s Australian business number (ABN)
- date the invoice was issued
- brief description of the items sold, including the quantity (if applicable) and the price
- GST amount (if any) payable – this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, as a statement which says ‘Total price includes GST’
- extent to which each sale on the invoice is a taxable sale
https://www.ato.gov.au/business/gst/tax-invoices/
Australian Consumer Law
Is the NDIA a business? Yes it is as they have their own ABN.
So, while the Participant is the Consumer you are requesting payment to be made by the NDIA.
Thus as payment can only be requested via a valid tax invoice (or invoice if not registered for GST), it is clear that the NDIA requires invoices to be itemised, which is further confirmed on their website here (or keep reading for more information).
Getting your invoices paid under the NDIS
Not only is all the above required, but the NDIA has outlined what they require for Compliance and as part of the Provider Payment Assurance Program because you are delivering service under a Federal Government Scheme.
https://ndis.gov.au/providers/working-provider/getting-paid
Keeping accurate records is part of any business.
The information in the above link cannot be read in parts but must be read as a whole as it applies to ALL participants regardless of how the funding is to be managed and providers regardless if registered or unregistered.
An invoice for a NDIS Participant requires all of the above as per the ATO, plus…
- participant’s name and NDIS number
- support item number (listed in the NDIS Pricing Arrangements)
- amount and quantity claimed for each unit of the support provided (for example, $51.09 each x 2 units)
- date/s the support was delivered (note this is in addition to the date of the invoice)
An invoice can only be for one participant, but can include multiple supports with Plan Managers (yes that includes 101 Plan Management) must also include the ABN of the third party provider – that’s your business number listed on ABN Lookup – when they request payment.
Support Item Numbers are actually required – contrary to what others might say – and where your invoice has to be submitted to the NDIA for whatever reason your invoice will be rejected by the NDIA if no support item numbers are listed, so get into the habit now. It is important to remember that the Plan Manager does not know what you have agreed to deliver so it is not our job to guess what item number to use. If you need help with item numbers, you can refer to the NDIS Pricing Arrangements (you can even import into most accounting software the item numbers you will regularly use) and you can contact the NDIA to request the provider support team call you back to work with you to ensure your compliance.
(if you do not know your Participant’s NDIS number, please include other identifying information such as their address).
Other Top Tips
When Plan Managers request payment they must submit a reference number for the invoice with it being standard practice that this is your invoice number.
It is highly recommended that providers use consecutive and sequential invoice numbers as would occur if using accounting software for all participants e.g. 101, 102, 103, 104 and not use 101 for example with every participant at some point. And let go of the zeros in front and the use of ‘INV’ – they are just presets, it means invoice, can be removed and do you ask anyone to look for invoice INV2612 or invoice 2612 ?!
Invoice dates and dates of service must include the year or they are legally invalid as the service could have been delivered in any year. The best format for dates is dd/mm/yyyy or dd mmm yyyy (for example 05/10/2022 or 5 Oct 2022) please do not use “th”, “st”, “rd” or “nd” after the date.
Unique identifiers as part of invoice numbers such as participant initials will eventually not work as at some point you will end up with a client with the same initials. When setting up accounting software as the funding is individualised each client should be represented as the customer not the NDIA.
Your contact information, including email address for remittance advice and contact number should be included on your invoices.
Invoice files should always be sent in pdf format for security purposes and because software is becoming so advanced that it is the best format.
Important:
Your invoice needs to be sent to the correct email address, please check the spelling of the email address, call 101 Plan Management on 08 7071 1555 to confirm correct email address or send an enquiry via our website to ensure you are sending your invoice to the correct email address for your invoice to be processed (the email address changed as of 1 July 2021 and is no longer the accounts email address).
Final words…
In a nutshell, if you want to mitigate issues with your invoices that are being claimed against your Participant’s NDIS Plan, be smarter – do it right the first time.
If you need help, call or email your software supplier.
Please note that at 101 Plan Management, at the time of this post, our current processing times for compliant invoices for existing providers, including making payment, is within 3-5 days (excluding weekends and public holidays). With team members having families of their own, please also consider this during school holiday periods.
