How to Manage NDIS Cancellations (And Bill Them Correctly)
Cancellations are unavoidable in NDIS work. Most providers either lose revenue by not billing short-notice cancellations or damage relationships by aggressive billing. The current NDIS rules are clear if you set up systems right. Here's what to do.
The Current NDIS Cancellation Rules
Current rules: short-notice cancellation (within 7 days of scheduled appointment) - 100% claimable from the participant's plan. Long-notice cancellation (more than 7 days notice) - non-claimable. The provider must have a documented cancellation policy and the participant must have agreed to it via service agreement. Rules vary slightly by support type - check current Pricing Arrangements. From Enrichment Care - cancellations average 12-15% of scheduled shifts. Without billing short-notice, that's 8-10% of revenue lost. The rules exist to protect providers from the financial hit of last-minute cancellations.
The Service Agreement Sets Everything Up
Cancellation billing only works if the service agreement documents the policy clearly. Required clauses: definition of short-notice (within 7 days) and long-notice, the percentage charged for each (100% short-notice typically), and how cancellations are tracked and communicated. Plain English. Get participant or guardian signature. We include cancellation policy in the participant onboarding pack and review it verbally during the meet-and-greet so there are no surprises. Module 1.5 audit checks for this clearly.
The Worker Pay Question
Just because the participant cancelled doesn't mean the worker doesn't get paid. Under SCHADS Award, casual workers are generally entitled to minimum engagement (typically 2-3 hours) once the shift is confirmed, even if cancelled within 24 hours. We pay our workers per SCHADS - it's the legally and ethically right thing to do. Track this carefully: we bill the participant 100% of the shift cost AND pay the worker for minimum engagement. The margin difference is the cost of doing business. Trying to dodge worker pay creates Fair Work risk.
Building a Cancellation Workflow That Doesn't Drop Balls
Workflow: when participant cancels, capture in your rostering system immediately (date, time, reason). Auto-determine if short-notice or long-notice. If short-notice, generate invoice within 24 hours so plan manager processes promptly. If long-notice, no invoice. Notify worker about cancellation and confirm worker pay. Use the unfilled time for participant outreach, training, or admin. Track cancellation patterns per participant - frequent cancellations may signal needs change requiring care plan review. ShiftCare automates most of this with templates.
The Action Items This Week
Pull your last 30 days of cancellations. How many were short-notice? Did you bill all of them? If you missed any, that's lost revenue. Update your service agreement template if cancellation clauses aren't crystal clear. Train your team to log cancellations the moment they happen - never end-of-day. Set up automated cancellation invoices in your rostering software. Provider Scale's growth audit identifies cancellation revenue leaks regularly. We see clients recovering 5-10% of revenue just by cleaning up cancellation billing. That's pure margin.