Becoming an independent NDIS support worker offers incredible flexibility and the chance to run your own business. But as of 2025, it’s essential to understand the requirements to operate legally and successfully as a sole trader.
This guide is your complete checklist for becoming an independent support worker in Australia, covering everything from your ABN and insurance to finding your first clients.
Sole Trader vs. Agency: Which is Right for You?
Before you start, it’s important to understand the difference between being a sole trader and an agency employee.
| Feature | Independent / Sole Trader | Agency Employee |
|---|---|---|
| Pay Rate | You set your own rates (typically higher). | Set by the agency (typically lower). |
| Flexibility | High. You choose your hours, clients, and services. | Low. The agency manages your schedule. |
| Admin | You are responsible for tax, super, insurance, etc. | The agency handles all admin. |
| Client Choice | You find and choose your own clients. | The agency assigns clients to you. |
| Security | Less stable. Income depends on your client base. | More stable, with consistent work. |
The Bottom Line: Being an independent worker offers higher earning potential and flexibility but comes with greater responsibility.
Your 7-Step Checklist to Get Started
Follow these steps to set up your business as an independent NDIS support worker.
Step 1: Get Your Qualifications & Checks
- NDIS Worker Screening Check: This is mandatory. You cannot work without it. Apply through your state or territory’s designated agency.
- Certificate III in Individual Support (Disability): While not legally required for all services, this is the industry standard and highly recommended.
- First Aid & CPR Certificate: Essential for client safety.
- Valid Driver’s License: Necessary if you plan to offer transport services.
Step 2: Set Up Your Business as a Sole Trader
- Apply for an ABN: You must have an Australian Business Number (ABN) to operate as a sole trader. You can register for free on the Australian Business Register.
- Register a Business Name (Optional): If you don’t want to trade under your own name, you can register a business name.
Step 3: Arrange Your Insurance
This is non-negotiable for an independent worker.
- Public Liability Insurance: Protects you if you accidentally cause injury to someone or damage their property.
- Professional Indemnity Insurance: Covers you against claims of negligence or mistakes in your professional service.
- Personal Accident Insurance: Provides you with an income if you are injured and cannot work.
Step 4: Understand NDIS Registration
- Unregistered Provider: If you only provide low-risk services (like cleaning, transport, or social support), you can work with self-managed and plan-managed participants without being registered with the NDIS.
- Registered Provider: If you want to provide high-risk services (like Support Coordination or SIL) or work with NDIA-managed participants, you must become a registered NDIS provider. This is a more complex and costly process.
All workers, registered or not, must comply with the NDIS Code of Conduct.
Step 5: Manage Your Finances
- Set Your Rate: Research the NDIS Price Guide for upper limits. Your rate should cover your time, insurance, superannuation, tax, and other business costs. Independent rates often range from $50 - $85+ per hour.
- Tax & Super: As a sole trader, you are responsible for your own tax and superannuation. Set aside at least 25-30% of your income for your tax obligations.
- Invoicing: You will need to create professional invoices for your clients or their plan managers. Use accounting software like Xero or MYOB to make this easier.
Step 6: Create a Service Agreement
A service agreement is a contract between you and your client. It protects both parties by clearly outlining:
- The services to be provided.
- Your hourly rates.
- The schedule of supports.
- Cancellation policy and payment terms.
Step 7: Find Your First Clients
- Online Platforms: Websites like Mable, Hireup, and Kynd are designed to connect independent workers with NDIS participants. They are a great place to start but charge a platform fee.
- Network with Plan Managers: Plan Managers are a key source of referrals. Introduce yourself and your services to local plan management companies.
- Word of Mouth: Provide excellent service. Happy clients are your best advertisement.
Frequently Asked Questions (FAQ)
How much can an independent support worker earn?
Earnings vary, but independent workers often charge between $50 - $85+ per hour. Your total income depends on how many hours you work and the rates you set, minus your business expenses (tax, super, insurance).
Do I need a qualification to be an NDIS support worker?
While a Certificate III isn’t always legally required for low-risk supports, it is highly recommended and expected by most clients. You must have a valid NDIS Worker Screening Check.
Is it better to be a sole trader or work for an agency?
It depends on your goals. If you want maximum flexibility and earning potential and are comfortable with running a business, being a sole trader is a great option. If you prefer security, consistent work, and less admin, working for an agency might be a better fit.
How do I handle tax and super as a sole trader?
You are responsible for putting aside money to pay your own income tax and contributing to your own superannuation fund. It’s highly recommended to speak with an accountant to set this up correctly.
Ready to take the next step in your NDIS journey? Whether you’re a participant looking for quality support or a worker seeking a provider that values excellence, MD Home Care is here to help. Contact us today.