Most allied health practices set their private rates by looking at three things — the NDIS price guide, what the practice down the road charges, and what they themselves can stomach saying out loud to a parent. The result is usually a rate that is 10–20% too low. Pricing is one of the highest-leverage decisions a practice makes; it deserves more rigour than the cafe rule.
This is operational orientation. Pricing should be checked against the current NDIS price guide and the relevant peak body’s rate recommendations. Tax implications need a registered agent.
The three reference points
- NDIS price guide: caps the maximum rate for NDIS-funded sessions in your discipline. This is a hard ceiling.
- Peak-body recommended rate: what your professional association suggests for private clients in your discipline.
- Local market rate: what comparable practices in your geography are charging private clients.
Costs to recover
Your billable-hour rate has to cover not just the session itself but the unbilled time around it: travel, notes, supervision, professional development, holidays, sick leave, insurance, registration. A rule of thumb most allied health businesses use is that for every billable hour, there is one hour of unbilled time. Your rate has to fund both.
Differentiation between NDIS and private rates
Many practices charge the NDIS cap for NDIS clients and a slightly different rate for private clients. The differential is operationally legitimate: NDIS payments are reliable but capped; private payments are uncapped but variable. Some practices charge identical rates for fairness; others split them. Both are defensible.
Cancellation pricing
Same-day cancellations have a real cost — the slot can rarely be refilled. Charging a partial fee for late cancellations is normal and accepted. Be clear in the service agreement; do not surprise a family with a charge they did not know about.
Re-pricing rhythm
Rates should be reviewed annually — typically July, in line with the NDIS price guide annual update. Notify clients at least four weeks before the new rate takes effect. Most practices that under-price are practices that have not done a rate review in three years.
Knowing your worth out loud
The hardest part of pricing is saying the rate to a parent who flinches. Most clinicians flinch first themselves. The practices that do not undercharge are the ones whose owners can say their rate without an apology in their voice. That is a skill, and it is practiced.