How to set-up your business as a Sole Trader for Independent Support Work
Whether it be Art Therapy or General Cleaning and Garden Maintenance, this information should help you get started. I know firsthand how it can be very overwhelming and frustrating in the beginning when setting up a business for the first time. The following information is what I learnt along the way on how to set up your business as a Sole Trader for self-managed or plan-managed NDIS participants.
FAQ’s about becoming a NDIS Sole Trader
• No, you cannot work for a family member as support worker or a sole trader.
• Yes, you can work for someone you already know.
• Yes, you can negotiate and agree on your hours and rates (according to the NDIS price guide) with your participant.
• Yes, you will need your own insurance.
• Yes, you will have to pay your own tax and superannuation
• Yes, you will need your own ABN.
Steps to Becoming a Sole Trader:
1. Firstly, you will need an Australian Business Number (ABN) and your own insurance. An ABN is a unique 11- digit number that identifies your business to the government and the community.
How to apply and reapply for an ABN
Apply here for an ABN and follow the steps outlined for an Individual (Sole trader).
You will also need to contact an insurance company to organise (at least) Public Liability and Professional Indemnity insurance. Make sure you ask your insurance company questions, especially if you are transporting a participant in your vehicle or driving theirs.
2. Secondly, you will need a Police Check and Working with Children Check (especially if working with children). You will need to research your state’s Police and Service Registry process as they differ across Australia. Here is a link for Queensland.
• It is a great idea to start these first two steps as soon as possible, as they can take some time to set up.
3. Thirdly, you will need to set up a Service Agreement. A Service Agreement defines the rights and responsibilities of the NDIS participant, and your rights and responsibilities as the Service Provider. A Service Agreement also describes how services and supports are to be arranged and delivered, thus protecting both the participant and the provider. Service Agreements include information such as, cost of services per hour, travel costs, payment terms, cancellation policies, and so on. Here is a link to Making a Service Agreement on the NDIS website. Alternatively, you can download a template from my website.
(Note. You may need to speak to a legal professional in your State if you want your Service Agreement to be officially legally binding). Make sure you view the NDIS Price Guide for correct Service Codes relating to the services you are providing.
4. Fourthly, you will need to know how to Invoice your clients your hourly rate and what service code to provide (according to the NDIS price guide), especially if the participant is plan managed. Invoices need to include the name of the participant, their NDIS number, your business name and ABN, description of services, correct billing/service codes, number of hours at the agreed rate mentioned in the service agreement, the total owing, and so on.
The billing codes can be confusing, so reach out to a service provider or contact NDIS to get clarification on which codes you should be using. Also, don’t forget to enquire about claiming for provider travel (FYI – see page 18 of the NDIS price guide) as at 25/2/2024.
Hint* when in the NDIS price guide press Ctrl and F and do a search on your services (i.e. Type in Cleaning or Yard Maintenance) and it will direct you to information on those services, such as provider and travel codes to include in your invoices).
5. Depending on what services you are providing you may also benefit from setting up other forms such as a Client Intake Form, Consent & Privacy Agreement, Person-Centred Profile, Client Session Notes, etc. You can download a template from my website or alternatively download the Sole Trader Complete Setup Package to assist you in setting up your business.
Good luck and reach out if you have any questions: joannaevansart@gmail.com
Keep on being humble,
Jo
