A Complete Guide to Understand NDIS Provider Travel Costs in 2025 | My Mobile Plan Manager

The National Disability Insurance Scheme (NDIS) has clear guidelines about how providers can charge for Provider Travel expenses when supporting participants.

This guide simplifies the rules for NDIS Provider Travel costs based on the 2024-2025 NDIS Pricing Arrangements and Price Limits. It provides simple insights into these rules, requirements, and practical uses of these provisions.

Overview of NDIS Provider Travel Cost Framework

Travel costs under the NDIS are separate from the direct NDIS Support and Services delivered to participants. These expenses fall into two main categories: Labour Costs (the time providers spend travelling) and Non-Labour Costs (like vehicle expenses, parking fees, and tolls). 

The NDIA (National Disability Insurance Agency) has implemented a transparent Care Management System that helps providers recover necessary Provider Travel – Labour Cost and Provider Travel (Kilometres) while ensuring responsible fund use. Let’s see how does NDIS Fund Works ?

All travel costs must be reasonable, necessary, and agreed upon in a Fully Managed Policy & Procedures structure, typically within a Service Agreement.

The NDIS has a transparent system to help providers recover necessary travel expenses while also ensuring that funds are used wisely.

The main idea behind these rules is that travel costs must be reasonable, necessary, and agreed upon beforehand.

This system acknowledges the importance of providers being able to travel to offer in-person services while also ensuring accountability through specific limits and documentation.

Key Requirements for Charging Travel Costs

To charge Provider Travel costs to a participant’s NDIS plan, providers must meet the following conditions:

• Get a prior written agreement with the participant, usually detailed in a Service Agreement.
• Follow the NDIS Pricing Arrangements and Price Limits for the relevant support.
• Must relate to a specific Core support or service like Assistance With Self-Care Activities.
• Provide face-to-face support, as online support does not qualify for travel expenses.
• Justify that the travel expense represents good value and aligns with the NDIS Payments.

Travel time is claimable only if the provider is a sole trader or paid employee, ensuring Provider Travel (Labour cost) reflects true value without double-dipping, and this rule ensures travel costs reflect actual expenses.

Zone-Based Travel Time Allowances

The NDIS uses a system that divides Australia into seven zones to set the maximum travel times for service providers. 

Zone 1 includes major cities, while Zone 7 consists of the most remote areas in the country. These zones are based on how many people live in each region and how far they are from urban centres.

Maximum Travel Time Allowances by Zone

Providers can charge for travel time when delivering face-to-face support. The allowed travel time varies by area:

NDIS Zone	Area Type	Max Travel Time (One Way)	Notes
Zones 1–3	Major cities & nearby areas	Up to 30 minutes	Applies for travel to deliver face-to-face support
Zones 4–5	Rural and regional areas	Up to 60 minutes	Covers wider distances common in less dense regions
Zones 6–7	Remote and very remote areas	Negotiable (up to hourly rate)	Must be agreed upon between the provider and the participant
All Zones (Return)	All areas	Same as above (by zone)	Return travel from the last participant to the provider’s workplace is allowed

Note: Providers can also charge for return travel time after the last visit, back to their usual workplace. This follows the same time limits based on the zones. This helps cover the full cost of the trip when needed.

Types of Allowable Travel Costs

Under the NDIS Pricing Arrangements and Price Limits, there are two primary travel cost types:

1. Travel Time (Labour Costs)

This covers the provider’s time spent travelling to and from service locations. This time is usually billed at the same hourly rate as the support being given, but it is listed separately from the direct support time in billing documents.

2. Non-Time-Based Transport Costs (Non-Labour Costs)

These are the actual expenses for transportation

• Vehicle use: Up to $0.99/km for private vehicles.
  
• Modified Vehicle Use: Up to $2.76/km (for accessibility).
  
• Provider Travel (Toll charges): Full recovery allowed for tolls, parking, and public transport.

These can only be charged when the support type allows Provider Travel cost recovery.

Activity-Based Transport Services

Activity-Based Transport involves providers transporting participants to community activities outlined in their NDIS plan, such as social participation under Core supports.

Providers offering this must ensure:

• It’s included in the Service Agreement.
  
• Supports such as Capacity Building may also qualify depending on the service.
  

Allowable Charges Include:

• Travel time (hourly rate)
  
• Vehicle use (up to $2.76/km for accessible vehicles)
  
• Parking, tolls, and public transport costs
  

These costs are not capped under standard pricing but can be negotiated case-by-case.

Eligibility and Coverage

Providers can offer activity-based transport for the following services:

• Core Supports: Help with social, economic, and community participation.
• Some capacity-building supports (but not all qualify).

These transport services need to be agreed upon in advance and usually appear in the participant’s Service Agreement.

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Allowable Charges for Activity-Based Transport

Providers can bill for the following:

1. Travel Time: Providers can charge their hourly rate for time spent travelling.

2. Vehicle Costs:

• Up to $0.99 per kilometre for standard vehicles.
• Up to $2.76 per kilometre for accessible vehicles or buses.

3. Additional Expenses: Providers can recover the full costs for tolls, parking fees, and public transport tickets.

It’s important to note that standard NDIS price caps do not limit transport costs based on activities. However, participants can negotiate lower rates in their Service Agreements.

Practical Example: Calculating Provider Travel Charges

To show how these guidelines work, let’s look at an example:

A provider helps a participant by taking them to a local swimming pool and providing support during the activity. Here’s how the time breaks down:

• 25 minutes of driving to the pool and setting up
• 40 minutes of direct support in the pool
• 20 minutes of driving the participant home

The provider charges $50 per hour for support and transport. There are also additional costs: a $4.50 parking fee and $0.85 for each kilometre travelled (20 km, totalling $17).

The provider would bill as follows:

• $33.33 for 40 minutes of direct support (at $50/hour)
• $37.50 for 45 minutes of transport time (at $50/hour)
• $21.50 for Non-Labour Costs (parking + mileage) ($17 for mileage plus $4.50 parking)

This example shows how Provider Travel and direct support services are billed separately.

Multi-Participant Considerations

When assisting multiple participants, travel costs must be split fairly (e.g., equally or proportionally by distance travelled for each participant) to ensure compliance and avoid duplicate NDIS Payments.

Underlying NDIS Cost Management Principles

The NDIS, under guidance from bodies like the Bureau of Statistics and NDIA, aims for sustainability by shifting from traditional welfare models to structured, policy-driven support, guided by principles aligned with Healthcare Quality Management.

In Summary

The NDIS Provider Travel cost rules help ensure equitable, sustainable practices across Australia. These guidelines:

• Define rules for charging Provider Travel and Activity-Based Transport.
  
• Protect both participant rights and provider operations.
  
• Reinforce trust through Care Management Systems, tools like the Myplace portal, and policy frameworks.

Need Help?

My Mobile Plan Manager is a registered NDIS plan manager. We simplify claim tracking, ensure compliance, and help you manage travel and transport charges with ease. If you need some help to understand how travel and transport charges work under the NDIS, My Mobile Plan Manager is there to guide you throughout your NDIS Plan Management journey.

If you have any questions, please email admin@mymobileplanmanager.com.au or call us on (02) 8552 7092 or chat with us online. 

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