The National Disability Insurance Agency (NDIA) recently released the final version of the long-awaited Specialist Disability Accommodation (SDA) Pricing Review 2022-202, announced in a media release issued by the Minister for the National Disability Insurance Scheme, the Honorary Bill Shorten.
The review was undertaken to evaluate the impact of current SDA pricing structures on the supply and demand of SDA housing and to set new SDA prices to guide market investment in areas that will most benefit NDIS participants with disabilities over the next five years.
A key aspect of the report ensures future pricing reflects the continued need for investment to support the housing requirements for NDIS participants into the future.
What is SDA Housing?
Specialist Disability Accommodation (SDA) is a range of housing options designed for people with severe functional impairment or very high support needs. SDA dwellings are purpose-built to include accessible features, enabling participants to live independently and allow other supports to be delivered safely.
SDA unites builders and developers (collectively known as NDIS providers), participants and investors by stimulating the current residential property market to produce high-quality, feature rich, contemporary, accessible and well-designed housing for participants with approved funding in their plan.
Every SDA dwelling must follow a set SDA Design Standard. This comprehensive set of rules outlines design requirements while providing flexibility to respond to participant needs and preferences. SDA housing may be funded under the National Disability Insurance Scheme (NDIS) for some participants.
What are the new pricing arrangements?
The complete 2023-24 SDA pricing breakdown can be found here. The document sets out the different allowance tiers based on multiple variables:
- whether sprinklers are installed
- if GST is, or isn’t claimed
- if the investor is using a vehicle whereby tax input credits can be claimed
- and where the property is located and the location weighting that subsequently applies
This update encompasses a key increase to the NDIS rental allowances, to take effect on July 1 2023, further improving the investment profile of SDA housing for investors.
How do these changes influence the investment profile?
We have seen a significant increase in the NDIS returns paid to investors, particularly for the Improved Liveability category. This housing tier is one of the 4 NDIS specialist disability accommodation design categories, providing housing with better physical access and more features for people with sensory, intellectual or cognitive impairments.
These increases can add tens of thousands of dollars to the annual income, significantly improving the yield on this class of investment. As a result, we are seeing significant interest in this space.
We have various home designs and options in several areas of Australia with all properties approved and required by our team of SDAs to meet participant demand. Complete turnkey packages starting in the low $700,000 range.
To arrange an appointment to discuss this exciting opportunity, please contact our office or phone us directly.
