Verdict
Active agreements are compliant. Lapsed agreements are audit red flags. Keep your agreements current and terminate formally if ending service.
NDIS Comparison
Current Active Agreement vs Lapsed or Expired Agreement
Active agreements are compliant. Lapsed agreements are audit red flags. Keep your agreements current and terminate formally if ending service.
Current Active Agreement
Best for: Participants with ongoing active supports
Pros
- Current by definition
- Reflects current service scope
- Legally valid if dispute arises
- Supports invoicing validity
- Auditors see it as compliant
Cons
- Requires regular review and renewal
- Must be signed by participant/guardian
- Compliance burden if scope changes
Lapsed or Expired Agreement
Best for: Participants you haven't served in 6+ months or agreement expired
Pros
- Simpler (no active service obligation)
- Reduces ongoing admin
- Termination is documented
- Cleaner record closure
Cons
- Audit red flag if you're still billing
- Legally weak if dispute arises
- Creates compliance exposure
- Unclear termination pathway for auditors