Do you need an NDIS conflict of interest policy? Provider requirements

Who needs an NDIS conflict of interest policy?

If your organisation is a registered NDIS provider, a conflict of interest policy is not optional — it is a required governance document under the NDIS Practice Standards. This obligation applies across provider types, including:

• SIL (Supported Independent Living) providers operating group homes or individual living arrangements
• Support coordination and specialist support coordination providers
• Plan management providers
• Allied health and therapy providers
• Early childhood and behaviour support providers
• Any registered provider delivering high-intensity or complex supports

Unregistered providers do not face the same formal audit obligation, but they are still bound by the NDIS Code of Conduct, which requires all workers and providers — registered or not — to act with integrity and avoid conduct that could harm participants or exploit the scheme.

Why does the NDIS require this policy?

Conflicts of interest in the disability sector carry real risks for participants. When a provider has a financial, personal, or organisational interest that competes with a participant's best interests, the quality and independence of the support they receive can be compromised. The NDIS Commission has consistently flagged conflicts of interest as a governance weakness in audit findings and sector communications.

The NDIS Practice Standards — particularly within the Module 1: Core Standards — require providers to demonstrate robust governance and operational management. This includes having systems to identify, disclose, record, and manage situations where the interests of the provider, its workers, or its associates may conflict with the interests of participants.

For SIL providers specifically, the conflict of interest risk is heightened. Providers who both deliver support and influence participant living arrangements hold significant power over vulnerable people. The NDIS Commission expects SIL providers to demonstrate that participant choice and control are protected, not shaped by the provider's commercial interests.

Under the strengthened NDIS Practice Standards taking effect in 2026, governance expectations have been raised further. Providers are expected to demonstrate that their conflict of interest management is embedded in day-to-day operations — not simply documented and filed away.

What the NDIS Practice Standards require

The Practice Standards set out outcomes that providers must achieve. On conflict of interest, auditors will look for evidence that your organisation:

• Has a written policy that defines what constitutes a conflict of interest in your service context
• Requires staff, board members, and management to disclose actual, potential, and perceived conflicts
• Maintains a conflicts of interest register that is regularly reviewed
• Has clear procedures for managing disclosed conflicts (recusal, oversight, escalation)
• Includes conflict of interest obligations in worker induction and ongoing training
• Ensures participants are informed and protected when a conflict exists or may exist
• Reviews the policy at defined intervals and after any significant organisational change

Auditors assess whether the policy reflects your actual operating environment. A generic template that does not reference your specific service types, organisational structure, or known risk areas is unlikely to satisfy an approved quality auditor.

Common conflict of interest scenarios for SIL providers

Understanding what a conflict looks like in practice helps providers write a more useful policy. Situations your policy should address include:

• A staff member has a personal relationship with a participant or a participant's family
• A board member or director has a financial interest in a business that supplies goods or services to the provider
• A support coordinator employed by (or financially linked to) the same organisation also recommends that provider's SIL accommodation to participants
• A manager makes rostering decisions that financially benefit a family member employed as a support worker
• A provider receives referrals from another entity in which a director holds a financial interest
• A worker receives gifts or benefits from a participant, participant's family, or third-party supplier

The support coordination / SIL relationship warrants particular attention. The NDIS Commission has published guidance noting that a support coordinator who is employed by, or otherwise affiliated with, a SIL provider creates a structural conflict of interest. If your organisation operates in both spaces, your policy must address this explicitly and demonstrate how participant independence is protected.

What your conflict of interest policy must include

While the Practice Standards describe outcomes rather than prescribe a document template, an audit-ready conflict of interest policy should contain, at minimum, the following elements:

1. Purpose and scope: A clear statement of why the policy exists and who it applies to (board, staff, contractors, volunteers).
2. Definition of conflict of interest: Cover actual conflicts (an existing competing interest), potential conflicts (a foreseeable future interest), and perceived conflicts (situations that could reasonably appear to others as conflicts, even if no actual conflict exists).
3. Disclosure obligations: How and when disclosures must be made, to whom (typically a line manager, CEO, or board chair), and the timeframe for disclosure after a conflict arises or is identified.
4. The conflicts of interest register: How disclosures are recorded, who maintains the register, and how often it is reviewed.
5. Management procedures: Options for managing a disclosed conflict — recusal from decision-making, increased oversight, reallocation of responsibilities, or in serious cases, standing down from a role.
6. Participant protection: How you ensure that disclosed conflicts do not result in participants receiving lower quality, less choice, or less appropriate supports.
7. Gifts and benefits: A clear gifts and benefits rule (most providers prohibit accepting gifts above a nominal threshold) as an ancillary conflict of interest control.
8. Consequences of non-disclosure: The disciplinary or contractual consequences for workers or contractors who fail to disclose a conflict.
9. Review cycle: A specified review frequency (at minimum annually, and following any significant organisational change).

Consequences of not having an adequate policy

Failing to have or implement a conflict of interest policy can result in serious regulatory consequences. The NDIS Commission has the power to:

• Issue a non-conformance finding during an audit, which must be remediated before registration is granted or renewed
• Impose conditions on your registration
• Suspend or cancel registration in cases of serious or repeated non-compliance
• Ban individuals from providing NDIS supports if conduct is found to breach the Code of Conduct

Beyond the regulatory risk, an undisclosed or unmanaged conflict of interest that harms a participant can result in complaints, NDIS Commission investigations, and significant reputational damage. In SIL settings, where the provider has close and ongoing involvement in a participant's daily life, the consequences for participants can be severe.

Practical steps to get compliant

1. Review your current governance documents to identify whether a conflict of interest policy exists and whether it reflects your current service context.
2. Map your specific conflict of interest risks — particularly any structural conflicts arising from your service mix (for example, SIL + support coordination).
3. Draft or update your policy to address those specific risks, not just generic scenarios.
4. Create or refresh your conflicts of interest register and ensure the process for logging disclosures is clear to all staff.
5. Include conflict of interest training in your staff induction and annual compliance calendar.
6. Schedule a policy review at least annually and document that the review occurred.
7. Ensure your board or governance body formally endorses the policy and that endorsement is minuted.

SIL providers preparing for the strengthened 2026 registration requirements should treat conflict of interest management as a governance priority, not a compliance afterthought. If you are building or refreshing your full documentation suite, ndiscompliant.com.au offers a 136-document SIL compliance kit that includes a conflict of interest policy, register template, and supporting governance documents aligned to the current Practice Standards.