What Is the Effect of Registering and Not Registering with the NDIS Commission? (2025 Guide)

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What Is the Effect of Registering and Not Registering with the NDIS Commission? (2025 Guide)

If you are planning to deliver NDIS services in Australia, one of the first decisions you must make is whether to register with the NDIS Commission or operate as an unregistered provider. Many businesses do not fully understand the differences, obligations, risks, and advantages of each option. Choosing the right approach can impact compliance, business growth, participant trust, and long-term sustainability.

This guide explains the full effect of registering and not registering with the NDIS Commission, helping you understand what this decision means for your business in 2025.

What Is the NDIS Commission?

The NDIS Quality and Safeguards Commission is the national regulator for NDIS providers. Its role includes:

• registering NDIS providers
• enforcing NDIS Practice Standards
• monitoring worker screening
• handling incident management
• conducting investigations
• protecting participant safety

Registration status determines whether your organisation must follow all mandatory standards or only basic consumer law obligations.

Registered vs Unregistered Providers – What’s the Difference?

Here is a clear and simple comparison:

Category	Registered Provider	Unregistered Provider
Who you can support	All NDIS participants (including NDIA-managed)	Only Self-managed & Plan-managed participants
Compliance	Must meet NDIS Practice Standards	Must follow Australian Consumer Law only
Audit Required?	Yes (NDIS audit every 1–3 years)	No audit required
Worker Screening	Mandatory Worker Screening Check	Not mandatory, but recommended
Incident Management	Required	Not required by law
Behaviour Support Oversight	Mandatory	Not required
Safeguards	High regulatory oversight	Low regulatory oversight
Marketing Advantage	Higher trust, more market access	Limited to certain participant budgets
Risk Level	Lower legal risk	Higher risk (misconduct allegations handled outside NDIS system)

Effect of Registering with the NDIS Commission

Becoming a registered NDIS provider has significant impacts on your operations, responsibilities, and opportunities. These effects can be grouped into major categories:

Increased Market Access

Registration allows you to support:

• NDIA-managed participants
• Plan-managed participants
• Self-managed participants

This is a major advantage because 43% of NDIS participants are NDIA-managed and cannot use unregistered providers.

Effect:
More clients, increased revenue potential, and greater stability.

Higher Trust and Credibility

Being registered tells participants that:

• your organisation meets national quality standards
• staff are screened and trained
• safety systems are in place
• complaints and incidents are managed professionally

Effect:
Stronger reputation → more referrals → easier contracting with support coordinators.

Mandatory Compliance Obligations

Registered providers MUST follow:

• NDIS Practice Standards
• NDIS Code of Conduct
• Worker Screening requirements
• Documentation & record keeping
• Incident management
• Restrictive practice rules
• Complaints management systems

Effect:
Higher governance responsibilities and ongoing compliance work.

Audit Requirements

Registered providers complete:

• Verification audit or
• Certification audit

Audits occur:

• every 1 year for higher-risk supports
• every 3 years for lower-risk supports

Effect:
Operational cost + improved systems + safer services.

Ability to Deliver Specialist Supports

You MUST be registered to deliver:

• Behaviour support
• High-intensity supports
• Supported Independent Living (SIL)
• Specialist Disability Accommodation (SDA)
• Plan management

Effect:
Access to higher-value service categories.

6. Stronger Client Safety + Regulatory Oversight

Registration requires you to:

• report incidents
• track risks
• conduct worker screening
• follow complaints procedures

Effect:
Reduced legal exposure + safer operating environment.

7. Eligibility for Government Partnerships

Many government programs ONLY work with:

• registered NDIS providers
• organisations with strong safeguarding systems

Effect:
More opportunities + contracts + grants.

Effect of NOT Registering with the NDIS Commission

Operating as an unregistered NDIS provider has advantages but comes with limitations and risks.

1. Limited Access to NDIS Participants

You can only support:

• Self-managed participants
• Plan-managed participants

You cannot support NDIA-managed participants.

Effect:
Smaller client pool + restricted business growth.

2. No Mandatory Audit – Lower Start-Up Cost

Unregistered providers do not undergo audits.

Effect:
Faster setup + low cost, but less structure.

3. Fewer Safeguards = Higher Risk

Because you are not under the Commission’s full oversight:

• complaints go directly to you or outside tribunals
• incidents are not monitored by the Commission
• misconduct allegations carry higher reputational risk

Effect:
Greater legal exposure + reduced participant protection.

4. Reduced Participant Trust

Many participants prefer registered providers because they are:

• screened
• audited
• safety-monitored
• quality-checked

Unregistered providers often struggle to compete in a regulated market.

Effect:
Lower credibility + harder to win referrals.

5. Cannot Deliver Specialist Supports

Unregistered providers cannot deliver:

• SIL
• SDA
• Behaviour support
• High-risk supports
• Plan management

Effect:
Lower income potential + limited service range.

6. Still Must Follow Consumer Law

Although unregistered providers avoid full NDIS compliance, you still must follow:

• Australian Consumer Law
• privacy legislation
• duty of care
• workplace and HR laws

Effect:
Legal obligations remain even without registration.

Should You Register or Not Register? (Clear Recommendation)

Your decision should be based on your business goals:

You SHOULD register if you:

want to support NDIA-managed clients
want to deliver high-value supports (SIL, SDA, Behaviour Support)
want to scale your organisation want credibility, trust, and long-term growth

You should NOT register if you:

want to deliver low-risk supports only
prefer minimal compliance work
want a fast start with low cost
only plan to support plan-managed or self-managed clients

Conclusion

Understanding the effect of registering and not registering with the NDIS Commission is essential for every NDIS provider. Registration brings stronger safeguards, higher trust, broader market access, and the ability to deliver specialised supports. However, it also requires audits, compliance, and operational responsibilities.

Operating unregistered may be simpler and cheaper, but it limits your client base, restricts service categories, and increases your risk profile.

Ultimately, the right choice depends on your services, goals, and long-term vision for your organisation.

⭐ FAQs

Do unregistered NDIS providers need insurance?

Yes, public liability and professional indemnity insurance are strongly recommended.

Can unregistered providers charge higher prices?

Yes. Unregistered providers are not bound by NDIS price limits.

Can unregistered providers work with support coordinators?

Yes, but many coordinators prefer referring to registered providers.

Is registering with the NDIS Commission mandatory?

No, unless you deliver high-risk supports or specialist services.

How long does registration take?

Typically 4–12 weeks depending on audit type and service complexity.