NDIS providers and families on edge as registration 'cyclone' looms

Andrew Horton wants more information about what happens next with mandatory NDIS registration. (ABC News: Brendan Mounter)

The first wave of mandatory registration for two kinds of NDIS providers which starts today has been broadly welcomed across the disability sector.

But small providers and families fear they will be swept up in a one-size-fits-all approach when the rules expand to businesses offering "higher-risk supports" next year.

The government says it is still working out exactly what the next phase of registration will look like and will consult with the sector ahead of the deadline next year.

Disability support worker Andrew Horton worries helping a client with everyday tasks could soon come with a price tag of up to $10,000.

This is the estimated cost of the full audit required for National Disability Insurance Scheme (NDIS) provider registration, according to the Cairns-based support worker, who provides one-on-one care to clients with complex mental health needs.

"We're being asked to prepare for something, but we don't know if it's a category one or category five cyclone," Mr Horton said.

There is broad backing for the first wave of changes starting today, which will force providers of digital platforms and supported independent living (SIL) to register with the NDIS watchdog, the Quality and Safeguards Commission (QSC).

SIL includes group homes, where some of the worst abuse and neglect of participants has occurred, and the category of funding is one of the highest value parts of the provider market, costing taxpayers about $16 billion a year.

Andrew Horton's work involves one-on-one care of clients with complex mental health needs. (ABC News: Brendan Mounter)

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But many small providers, independent support workers and families are increasingly anxious about the next stage of registration after the federal government flagged mandatory requirements would expand to those offering "high-risk supports", including personal care and in-home services, between 2027 and 2030.

Providers say the government is yet to properly define what "high risk" means or how it will avoid imposing the same costly registration burden on sole traders as large organisations.

Industry estimates suggest the cost of NDIS registration, including documentation and compliance systems, ranges from a few thousand dollars to $15,000 or more, depending on complexity of the services offered. These are driven by mandatory third-party audits.

Independent workers such as Mr Horton wor