Choosing between registered and unregistered NDIS providers can be confusing for participants, families, and businesses entering the disability sector.
While registered providers meet the requirements of the NDIS Quality and Safeguards Commission, unregistered providers can still deliver valuable services depending on a participant’s funding arrangements.
Understanding the differences can help you make informed decisions about the supports you access or the type of provider you want to become.
In this guide, we’ll explain how registered and unregistered providers compare, their advantages and disadvantages, and what to consider before registering.
The National Disability Insurance Scheme (NDIS) operates to provide necessary support and funding for people with significant disabilities, their families, and carers. All NDIS participants have an individual plan outlining their goals, the support they need, and the funding they receive.
NDIS providers can be divided into two groups: registered and unregistered. Registered NDIS providers are those approved by the National Disability Insurance Agency (NDIA) as meeting specific standards of quality, experience, qualifications, or competency to provide services for NDIS participants, including strict NDIS audit requirements. Registered NDIS providers are not required to meet these standards but may still choose to do so.
If you’re wondering about the difference between a registered and unregistered provider, what an NDIS provider is, or the benefits of becoming one, keep reading.
In this article, we’ll run through:
- What is the difference between a registered and unregistered provider
- Who can use registered and unregistered providers
- Pros & cons of being registered
- More on unregistered NDIS providers
- Should I become a registered provider: things to consider
- How to become a registered NDIS provider
- Conclusion
What is the difference between a Registered and Unregistered NDIS provider?
There are two main categories of NDIS providers: registered and unregistered. The difference between the two is that a registered provider has been approved by the National Disability Insurance Agency (NDIA) to deliver support to plan-managed participants, while an unregistered service provider may not have received approval yet or may choose not to register with the NDIS.
Unregistered NDIS providers are not accountable to the NDIA in the same way registered providers are and cannot work directly with NDIA-managed participants. This can potentially limit expansion opportunities and access to a wider pool of participants. Some examples of unregistered providers include private operators or family-run disability service businesses.
If you’re looking to become an NDIS provider, registered status is often considered beneficial because it allows you to be part of a wider network and access more opportunities for growth. However, it also comes with additional responsibilities and compliance requirements.
Who Can Use Registered and Unregistered Providers?
Funding arrangements influence which providers participants can access.
| Participant Type | Registered Providers | Unregistered Providers |
| NDIA-Managed | Yes | No |
| Plan-Managed | Yes | Usually Yes |
| Self-Managed | Yes | Yes |
Understanding how funding works can help participants choose the right provider for their circumstances.
Registered vs Unregistered Providers at a Glance
| Feature | Registered | Unregistered |
| NDIS Commission Approved | Yes | No |
| NDIA-Managed Participants | Yes | No |
| Subject to Audits | Yes | No |
| Worker Screening Obligations | Yes | Yes |
| Flexibility | Moderate | High |
| Registration Costs | Higher | Lower |
What are the pros & cons of becoming a registered NDIS provider?
While being a registered NDIS provider is usually recommended because they’re seen as more credible and trustworthy, there are benefits and disadvantages associated with both registered and unregistered providers, particularly when factoring in NDIS audit requirements.
Registered: Pros
- Access to NDIA-managed participants
- Seen as more trustworthy and credible by participants
- Higher quality service due to the NDIS’ stringent standards
- Quicker cash flow as payments are handled through the NDIS portal
- Easier access to financing from in-depth documentation requirements
Registered: Cons
- Higher start-up and ongoing costs for registration and audits
- Stricter compliance requirements
- More paperwork
- Legal matters can arise if the quality of service offered is not up to standard
Unregistered: Pros
- Starting up is quicker and easier
- Less costs as there are no licensing or audit fees
- Able to work directly with participants (instead of through the NDIA), making it easier to build relationships
- Able to offer more competitive prices as it is not subjected to the NDIS price guide
Unregistered: Cons
- May be seen as less trustworthy (participants are more wary)
- Need to focus more on building a strong reputation in the community, especially as a new business
- No access to NDIA-provided lists, making it harder to scale the business
- No documentation or auditing requirements could lead to lower quality services or legal liabilities
More on unregistered NDIS providers
Do unregistered providers get audited?
Unlike registered providers, unregistered providers may not get audited due to the fact that they are unregistered and cannot be investigated by the NDIA. An investigation may occur as a result of a complaint or as part of planned reviews. In both cases, an audit will only commence if the NDIA has sufficient evidence to take action against an unregistered NDIS provider.
How do unregistered providers get paid?
One of the main benefits of being an unregistered provider is that you don’t have to use the NDIS portal.
Unregistered providers can manage cash flow more easily by invoicing participants directly rather than having payments processed through the NDIA.
What are the obligations of being an unregistered provider?
Just because unregistered providers are not accountable to the NDIA in the same way registered providers are does not mean they can act without consequences.
Unregistered providers should:
- Keep records for their business
- Maintain details of staff employed
- Record complaints made against them
- Comply with the NDIS Code of Conduct
- Conduct NDIS Worker Screening Checks for all employees where required
Other useful things to consider for unregistered providers
- Get an ABN: It’s a good idea for any provider to have an ABN, obtained through the Australian Business Register. Depending on your company structure and services offered, you may also need to join other government or professional organisations.
- Business insurance: Providers should consider business insurance to cover risks associated with clients and service delivery. This may include workers’ compensation, public liability, and professional indemnity insurance.
- NDIS pricing: There are several different types of NDIS supports, each with its own pricing parameters controlled by the NDIA. Understanding these rates can help determine the prices you charge.
- NDIS Service Agreements and invoices: A Service Agreement outlines the supports provided, how and when they will be delivered, costs involved, responsibilities of both parties, and how issues will be managed. All providers are encouraged to use Service Agreements to ensure expectations are clearly documented.
Things to consider before registering
While it is generally recommended to become a registered provider, the decision ultimately depends on your business size, goals, and the services you provide.
Although registration has many benefits, audits, licensing, and compliance requirements can be expensive and time-consuming. Sole traders and newer providers may not have the resources required to meet the NDIA’s standards immediately.
Some providers may also prefer to remain local and focus on maintaining strong relationships within their communities rather than pursuing large-scale growth.
However, certain support categories require registration. These include:
- Coordination of supports
- Improved living arrangements (some services cannot be delivered without registration)
- Improved relationships
- Improved life choices
How to become registered
It’s important to make an informed decision before registering with the NDIS, especially if you’re considering changing your current business structure.
If you prefer to remain unregistered, there is little additional administration required beyond operating with an ABN and invoicing eligible participants directly. However, onboarding new participants may be more difficult without registered status.
For those looking to register, check out the existing guide:
5 Steps To Becoming A Registered NDIS Provider
This resource walks you through everything you need to know about the registration process.
Conclusion
Whether you’re registered or unregistered, all providers can benefit from more efficient operations, easier rostering, and decreased time spent on administration and paperwork.
That’s where ShiftCare comes in.
As a leader in care management, our platform manages clients, schedules, funding, invoicing, and documentation, helping streamline processes for both local providers and large-scale businesses navigating NDIS audit requirements.
Try it for yourself with our 7-day free trial.
Frequently Asked Questions
Do NDIA-managed participants have to use registered providers?
Generally, yes. NDIA-managed participants typically need to engage registered NDIS providers.
Can self-managed participants use unregistered providers?
Yes. Self-managed participants usually have the greatest flexibility when selecting providers.
Can plan-managed participants use unregistered providers?
In many cases, yes.
Are registered NDIS providers better?
Not necessarily. The right choice depends on funding arrangements, support needs, and personal preferences.
How can I check if an NDIS provider is registered?
Participants can search the NDIS Provider Register or ask providers directly about their registration status.
