NDIS Horror Stories: What Went Wrong and How to Avoid Common Pitfalls

14 April 2025
5 min read

Introduction

The NDIS (National Disability Insurance Scheme) is an essential service that empowers individuals with disabilities to lead more independent lives. However, like any complex system, it comes with its fair share of challenges. While many NDIS providers and participants experience success, there are also horror stories that can serve as valuable lessons for those navigating the system. In this blog, we’ll explore some real-world NDIS horror stories, identify what went wrong, and offer advice on how to avoid these pitfalls in your own practice.

1. Miscommunication Between Providers and ParticipantsOne of the most common issues that lead to problems in the NDIS space is miscommunication. When providers and participants are not on the same page about goals, services, or expectations, it can result in frustration and unmet needs.

Real-World Example:

An NDIS provider working with a participant who required specialised support services failed to clearly define the goals at the beginning of their agreement. This miscommunication led to both the provider and participant feeling dissatisfied with the outcomes of the services provided. The participant was left feeling unsupported, and the provider was unable to deliver the necessary services, resulting in a poor experience for both parties.

How to Avoid This:

  • Clear Communication: Always ensure that the goals and services are clearly discussed and documented before beginning any work.
  • Regular Check-ins: Schedule regular meetings with participants to track progress and make adjustments as needed.
  • Documentation: Keep detailed records of all communications, agreements, and changes to services to avoid misunderstandings.

2. Incorrect Invoicing and Financial MismanagementAnother common issue for NDIS providers is incorrect invoicing. A provider may misclassify services or charge inappropriately, leading to financial disputes or delays in payment.

Real-World Example:

One NDIS provider submitted an invoice for a service that wasn’t actually covered under the participant’s NDIS plan. This led to the participant being billed directly and caused significant delays in payment, resulting in frustration and a damaged business reputation.

How to Avoid This:

  • Understand the NDIS Pricing Arrangements: Make sure you’re fully aware of the NDIS pricing guide and what services can and cannot be billed under each participant’s plan.
  • Use a Plan Manager or Automated System: To avoid errors, consider using a plan manager or an automated invoicing system that integrates with the NDIS framework.
  • Double-Check All Invoices: Always double-check invoices before submission to ensure all details align with the participant’s plan.

3. Failing to Adapt to Changing NDIS PlansParticipants’ NDIS plans can change over time, whether due to funding changes, reassessments, or evolving needs. Providers who fail to adapt to these changes risk losing participants or providing services that no longer meet the participant’s needs.

Real-World Example:

An NDIS provider continued delivering the same level of service to a participant after their plan had been updated, not realising that the new funding allocations required a change in the type or frequency of services. This led to the provider running at a loss, as the services provided exceeded the available funding.

How to Avoid This:

  • Stay Up-to-Date: Regularly check for updates to participants’ plans to ensure that the services you’re providing are still in line with their needs.
  • Flexibility is Key: Be ready to adjust services as necessary to meet the evolving needs of your participants.
  • Track Plan Changes: Use a system to monitor and track changes to participants' NDIS plans to avoid overservicing or underservicing.

4. Inadequate Training for StaffA lack of staff training or awareness of NDIS-specific requirements can lead to poor service delivery. Providers who do not ensure that their staff are well-trained in both the technical aspects of NDIS and the best practices for supporting participants may find themselves in legal or reputational trouble.

Real-World Example:

A support worker from an NDIS provider wasn’t properly trained in assisting participants with complex mobility issues, which led to the participant being injured during a support session. The incident resulted in legal action and a loss of trust from the community.

How to Avoid This:

  • Ongoing Training: Ensure that your staff receive regular training on the specific needs of the participants they work with and on NDIS guidelines.
  • Specialised Skills: If working with participants who have specific needs (e.g., mobility support, mental health), ensure that staff members have the appropriate specialised training.
  • Risk Management: Implement clear risk management practices to prevent incidents that could lead to harm.

5. Ignoring Participant FeedbackParticipant feedback is one of the most valuable tools for improving service delivery. Ignoring or dismissing feedback can result in dissatisfaction, loss of trust, and potential complaints to regulatory bodies.

Real-World Example:

An NDIS provider received feedback from a participant about the quality of support they were receiving but did not take action to address the concerns. This led to the participant discontinuing services and filing a formal complaint, damaging the provider’s reputation.

How to Avoid This:

  • Active Listening: Always listen carefully to participant feedback, whether positive or negative.
  • Act on Feedback: Take necessary actions to address any concerns or suggestions participants provide.
  • Build Trust: By showing that you value their input, you build a stronger, more trusting relationship with participants.

6. Mismanagement of Participant ExpectationsParticipants may have unrealistic expectations of the services they will receive under the NDIS. If these expectations are not managed from the outset, it can lead to disappointment and dissatisfaction.

Real-World Example:

An NDIS participant had high expectations regarding the level of support they would receive for social activities. The provider, however, had only agreed to provide minimal assistance, leading to the participant’s dissatisfaction and a breakdown in the relationship.

How to Avoid This:

  • Set Realistic Expectations: Be clear with participants about what services can and cannot be provided within the scope of their NDIS plan.
  • Discuss Goals Thoroughly: Take time to understand the participant’s goals and how you can realistically help them achieve them within their allocated funding.

7. Not Complying with NDIS RegulationsFinally, one of the most damaging horror stories for providers is non-compliance with NDIS regulations. Whether it’s missing audits, failing to meet participant requirements, or not maintaining appropriate records, non-compliance can result in severe consequences.

Real-World Example:

An NDIS provider was found to be non-compliant with several regulatory requirements, including failure to conduct regular audits and inaccurate record-keeping. As a result, the provider was sanctioned and faced reputation damage, resulting in lost business.

How to Avoid This:

  • Stay Informed: Regularly review NDIS regulations and ensure your business remains compliant.
  • Conduct Regular Audits: Regularly audit your operations and processes to ensure compliance with NDIS standards.
  • Seek Professional Advice: If in doubt, consult with an NDIS compliance expert to ensure your practices are up to date.

8. Conclusion: Learning from NDIS Horror StoriesWhile NDIS horror stories can be unsettling, they also provide invaluable lessons that can help you avoid common pitfalls. By prioritising clear communication, financial accuracy, ongoing training, and compliance, you can prevent these mistakes from affecting your business and participants. As the NDIS landscape continues to evolve, learning from others’ experiences will help you better serve your participants and build a stronger, more reliable service.

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