NDIS Cancellation Policies: What Providers Need to Know

October 26, 2025
5 min read

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Understanding the NDIS Cancellation Policy: What Providers Need to Know

As an NDIS provider, chances are you’ve experienced your fair share of short notice cancellations and no shows. These types of cancellations can have a flow-on effect on your business, impacting your workday, the relevant worker if you’re a provider and potentially leaving you out of pocket. Not to mention, it can make maintaining trust with your participants difficult, especially if they regularly cancel at short notice. This is when the NDIS cancellation policy comes into play.

Read on to learn more about the NDIS cancellation policy and how it affects you as an NDIS provider.

What is the NDIS cancellation policy?

The NDIS Cancellation Policy is a set of guidelines designed to regulate how short notice cancellations or no shows are managed between National Disability Insurance Scheme (NDIS) participants and service providers.

Ultimately, the NDIS cancellation policy aims to create a fair balance between the rights of participants to reschedule or cancel services and the need for providers to maintain financial stability. It protects participants by giving them flexibility in managing their services but also shields providers from losing income due to late cancellations or no shows.

Under the NDIS cancellation policy, providers can claim up to 100% of the agreed fee linked to the activity or support if the participant cancels at short notice and other specific conditions are met.

This means that participants will still be billed for their support.

What is a short notice cancellation?

Under the NDIS cancellation policy, a short notice cancellation refers to instances when:

  • A participant cancels or reschedules a service appointment with less than seven clear days’ notice,
  • They don’t show up for a scheduled support within a reasonable time, or
  • They’re not present at an agreed place within a reasonable time when a provider is travelling to deliver the support.

For example, if a participant showed up for their scheduled support 30 minutes late, it could be considered a short notice cancellation.

When it comes to a group session cancellation, a similar policy applies. If you can’t find another person to attend the session and the short notice cancellation conditions are met, providers can charge the individual a cancellation fee while all other attendees will be charged as if the participant attended the group session. Download our guide to NDIS Cancellation Policy and get helpful tips to manage short-notice cancellations.

What conditions must be met to claim a cancellation fee?

Just because your client cancels at the last minute doesn’t necessarily mean you can put in a claim. Instead, providers can only claim for short notice cancellations if the following conditions are met:

  • The support item is eligible to claim for short notice cancellations under the NDIS Pricing Arrangements and Price Limits guide and the cancellation fee doesn’t exceed the price limits,
  • The service agreement between the provider and the participant must specify that short notice cancellation fees will be charged, and
  • The provider isn’t able to find alternative billable work and still has to pay the support worker for their time.

Ultimately, NDIS providers have the final say on how they handle cancellations and whether they’ll charge a cancellation fee.

Claiming short notice cancellations

When it comes to claiming a short notice cancellation, you’ll need to use the same support item when making a payment request via PRODA. The only difference is that you’ll mark it as a cancellation.

It’s important to keep a log of all communications regarding the cancellation for future reference. Be sure to record the relevant details of the cancellation, including:

  • Date and time of the original appointment,
  • Date and time the cancellation was communicated by the participant, and
  • Reason for the cancellation (if provided).

Crafting your own cancellation policy

NDIS providers can craft their own cancellation policies as long as they comply with NDIS guidelines and price limits.

If your cancellation policy differs from the standard NDIS cancellation policy, it’s important to make sure you include your policy in the service agreement with each participant. Be sure to include detailed instructions on how participants should communicate their intention to cancel or reschedule a support or appointment.

And don’t forget, the NDIS often updates their guidelines and price limits, so you’ll need to stay up to date and amend your cancellation policy as needed.

Tips for handling NDIS cancellations

While it can be comforting to know that cancellations can be claimed, it can be frustrating to deal with cancellations. That said, there are some strategies you can implement to help minimise potential cancellations.

Enhance communications with NDIS participants

Communication is key when it comes to managing late cancellations.

Regular check-ins can be used to remind participants of upcoming appointments and confirm their attendance. This could be done via phone calls, texts or emails.

Ensure participants understand the cancellation policy, including any fees associated with short notice cancellations. Providing this information upfront can help set expectations.

But remember, effective communication is a two-way street. Two-way feedback can also help you to improve your scheduling and reduce the number of cancellations. By creating a system for gathering participant feedback about their experiences and challenges in attending appointments, you’ll be better positioned to make necessary adjustments.

Provide flexible scheduling options

Provide participants with various scheduling options and multiple time slots to increase the likelihood that they will find a time that suits them.

There may be times when participants need to reschedule, so it can help to implement a simple and flexible rescheduling policy that allows participants to move appointments easily without significant penalties.

Educate your participants on your cancellation terms

It’s important to make sure participants are aware of the terms of their NDIS service agreements, including your cancellation policy, the cancellation process and how to reschedule their appointments.

Offer educational materials or workshops about the importance of attending scheduled appointments and the impact of cancellations on their support services.

Help participants understand how regular attendance aligns with their individual goals and objectives under the NDIS.

Use a reminder system

Send out automated reminders via SMS or email 1-2 days before an appointment. These reminders can reduce no-shows significantly. If certain participants have a higher number of cancellations, it could also be worth making follow-up calls a day or two before appointments to confirm their attendance.

Some NDIS software platforms, like CareMaster, even include integrated communication and collaboration tools that allow you to share real-time updates and monitor participant’s progress. And with the CareMaster NDIS Participant App, you can empower your participants to take control of their care and supports while providing a simple way to get in touch with their support worker.

Track cancellations

Regularly track cancellation rates and analyse the data to identify patterns or common reasons for cancellations. This information can inform adjustments to scheduling and communication practices.

For participants with an unusual number of cancellations, consider personalised strategies or interventions to address their specific challenges.

At the end of the day, the NDIS cancellation policy is in place to help providers maintain smooth operations. Find out more about the NDIS Cancellation Policy and how to manage cancellations in our helpful guide.

Streamline your systems with CareMaster

Managing short notice cancellations can be tough, but CareMaster’s cloud-based NDIS software can make cancellations easier for providers, support workers and participants alike. From sending reminders to tracking and billing cancellations, CareMaster’s NDIS software provides everything you need to effectively manage and minimise short notice cancellations.

To learn more about how CareMaster can elevate your business, book in for a complimentary NDIS software demonstration with one of our friendly specialists.

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