10 Common Mistakes to Avoid in NDIS Provider Registration - if you are currently an unregistered provider

March 12, 2025 Faz Mohitian

If you are currently an unregistered NDIS provider and thinking about becoming a registered NDIS provider, you will find value in this blog post. News such as compulsory registration for NDIS SIL Providers proves more than ever that NDIS registration will become an important part of providing support under the NDIS.˜ Unfortunately, many aspiring providers face setbacks because of avoidable mistakes. This blog highlights ten common errors made during NDIS provider registration and offers actionable tips to help you succeed.

1. Not Understanding the NDIS Provider Registration Process

Starting an NDIS business requires a clear understanding of the registration process. This includes setting up a PRODA account, preparing documentation, and passing an NDIS internal audit.

Set up an ABN.
Set up your PRODA Account.
This portal is essential for managing your registration and linking it to your ABN. Ensure all details are accurate when creating your account.
Prepare Required Documentation (HR documents and insurance).
Prepare policies and procedures templates that meet the NDIS Practice Standards. High-quality templates save time and ensure compliance.
Complete the online NDIS Application.˜
Complete the Self Assessment to obtain your Initial Scope of Audit.˜

NOTE: A lot of providers fall into the trap of using generic answers given by consultants. This has led to long delays and in some cases refusing the application by the NDIS Practice Standards. You?d need to prepare customised answers with the help of your consultant that suits the size and complexity of your business.˜

Get Ready for the Internal Audit.

The internal audit checks your compliance with NDIS standards. Performing a gap analysis beforehand helps identify and fix any issues.
Get quotes from Approved Quality Auditors to conduct the external audit.˜
Pass your external audit.

Avoid Common Mistakes

Missing steps can cause delays, added costs, or even non-compliance. Use the NDIS Provider Registration Guide and consult experts to make the process smoother.

2. Failing to Complete a Gap Analysis

Failing to complete is vital when starting an NDIS business. It shows where your organisation does not meet the NDIS Practice Standards. This helps you fix problems before your NDIS audit. Skipping this step can cause failed audits. It can also increase your NDIS registration costs. You may face delays in getting your NDIS provider registration.

Why You Need It

A gap analysis helps:

Identify missing documents like NDIS workers screening checks.
Align policies with NDIS standards using NDIS policy templates.
Prepare your staff for audits through business coaching and training.

How Posity Online Can Help

Posity Online makes NDIS registration simple with:

Expert gap analysis services.
Tailored NDIS consultation and templates.
Help with NDIS screening checks and compliance.˜

3. Not Completing NDIS Screening Checks

Completing the NDIS Worker Screening Check is essential for all employees, contractors, or volunteers working with NDIS participants. This ensures the safety of vulnerable individuals and compliance with NDIS standards. The screening includes checks on criminal history, misconduct, and ongoing monitoring. Not completing these checks early can slow down your business operations. It can also cause non-compliance during an NDIS internal audit. Ensure you factor in screening fees when calculating NDIS registration costs to avoid surprises.

Steps to Complete NDIS Screening

Submit applications through your state or territory agency.
Track your progress to complete all checks before the audit.
Keep records as part of your HR documents and Information Management.

If you?re unsure, NDIS consultants or business coaching services can simplify the process.

4. Ignoring the Importance of NDIS Policy and Procedures Templates

Customised NDIS policy and procedures templates are essential for meeting compliance requirements and passing audits. Using basic templates can cause gaps, leading to delays or added costs in your NDIS registration or audit.

Why Tailored Templates Matter

Ensure compliance with NDIS standards.
Support smooth NDIS internal audits and gap analysis.
Reflect your unique services and operations.
Help reduce NDIS registration costs by avoiding re-audits.

Invest in professional, up-to-date templates or work with an experienced NDIS consultant. This helps ensure your policies follow the NDIS price guide, include NDIS screening checks, and meet registration requirements.

5. Misunderstanding NDIS Registration Costs

A common mistake when starting an NDIS business is underestimating the costs involved. These include several fees and ongoing expenses you may not expect:

Key Costs of NDIS Registration

Consultant fees

This can vary depending on who you ask. Consultant services cost anywhere from $1,500.00 to $15,000.00. When choosing a consultant, check their track record, unbiased reviews and their experience.˜

Audit Fees

Depending on your business and the services you offer, you'll need either a verification audit or a certification audit. It also depends on the number of services you are planning to get registration for, as well as having staff or participants at the time of the audit. The cost will range from $1,000.00 to $10,000.00.˜

Insurance

You?d need Public Liability, Professional Indemnity and WorkCover Insurance.˜

Training and Screening Checks

All staff must complete an NDIS Workers Screening Check. You?ll also need to invest in internal auditor training to stay compliant.

NDIS Policy and Procedures Templates

You?ll need specific NDIS policy and procedures templates to meet regulatory standards.

Ongoing Compliance Costs

After registration, you?ll face ongoing costs to maintain compliance, such as staff training and audits.

Systems and IT

You?ll need to invest in a client management system, an accounting and HR system.˜ Consider NDIS consultation and business coaching to avoid unexpected expenses.

6. Not Preparing for the NDIS Audit

The NDIS audit evaluates your business?s compliance with the NDIS Practice Standards. Lack of preparation can lead to failed audits, re-audits, and unnecessary costs. Preparation Steps:

Conduct mock audits to identify gaps.
Use internal auditor training to prepare your staff.
Seek business coaching for personalised audit readiness strategies.

7. Underestimating the Importance of preparing your Governance and Quality Management

Not getting your Governance sorted may result in non-conformities. Things to consider:

Preparing your Business Plan and Strategic Plan.
Legislation list - the legislation and standard which your business needs to operate under.˜
Business risk register - the potential risks that may affect your business, and your action plan for them.
Delegation of authority register.˜
Risk assessed role register.˜
Formal participant feedback surveys.˜
Staff surveys and performance reviews.
Management and staff meeting notes.˜

8. Failing to Train Internal Auditors

Properly trained internal auditors are crucial for maintaining ongoing compliance. Without formal internal auditor training, your business may fail to identify key non-compliance issues. Solution: Enroll in accredited internal auditor training programs to build a capable compliance team.

9. Not Keeping Up with Changes in NDIS Regulations

NDIS regulations and practice standards are updated regularly. Businesses that don?t stay informed risk falling out of compliance.

10. Overlooking the NDIS Price Guide

The NDIS price guide outlines allowable rates for services. Ignoring these guidelines can lead to disputes with participants or underpricing, affecting your business?s financial health. Advice: Ensure your staff understands the latest price guide and updates your service agreements accordingly. Keep up to date with the NDIS Price Guide.

Conclusion

Avoiding these ten common mistakes can make the NDIS registration process smoother and more efficient. Stay compliant by filling gaps, preparing for audits, and controlling costs. Working with NDIS Consultants, training your staff, and staying updated on regulations can save you time and money. These steps can also boost your success rate. Start your journey today and contact Posity Online.

How Posity Online Can Help

At Posity Online, we specialise in helping businesses navigate the NDIS registration process, ensuring they meet all necessary standards to become a registered provider. We also offer ongoing support for NDIS providers, including internal audits, compliance checks, and assistance with NDIS notice letters. Visit our website to learn more about our services and how we can assist you in your NDIS journey.