Understanding the NDIS (National Disability Insurance Scheme)

The National Disability Insurance Scheme (NDIS) is an Australian government initiative designed to provide financial support to individuals with significant and permanent disabilities, as well as their families and carers. In the 2023/24 financial year, the NDIS will allocate $41.9 billion to over 500,000 Australians, with funding expected to increase to $89.4 billion by 2031/32.

Key Components of the NDIS

1. NDIS Participant

A Participant is a person with a disability who has been approved to receive NDIS funding. This funding allows them to purchase supports and services to help achieve their personal goals and improve their quality of life.

2. NDIS Provider

A Provider is an individual or business registered with the NDIS to deliver approved support and services to Participants.

Specialist Disability Accommodation (SDA)

What is SDA?

SDA stands for Specialist Disability Accommodation, which is tailored housing for people with high support needs. SDA homes are designed to facilitate independent living while allowing for in-home support services. These homes help reduce pressure on aged care facilities and offer families relief when traditional homes are not suitable.

SDA Funding Levels

SDA funding covers four types of homes, each designed for specific support needs:

• Improved Livability
• Fully Accessible
• Robust
• High Physical Support

Supported Independent Living (SIL)

What is SIL?

Supported Independent Living (SIL) provides funding for support or supervision with daily tasks to help Participants live as independently as possible. This differs from SDA, as SIL focuses on support services, while SDA covers the housing component.

Can You Have SIL Without SDA?

Yes. Many Participants who need SIL can live in regular homes without requiring specialist accommodations under the SDA program.

Financial Aspects of SDA Investments

Reasonable Rental Contribution (RRC)

• Tenants contribute up to 25% of their Disability Support Pension base rate and 100% of any Commonwealth Rental Assistance.
• This equates to approximately $10,911 per year per Participant.

How Are SDA Payments Made?

SDA payments are calculated based on the dwelling’s location, size, and level of accessibility. Payments are typically made monthly, in arrears.

The Shortage of SDA Housing

There is a significant shortage of suitable housing for NDIS Participants. A study by the Summer Foundation in 2020 highlighted a shortfall of over 7,700 SDA places, with more than 28,000 needed across Australia. This gap presents a significant investment opportunity in the SDA market.

Government Commitment to SDA Funding

Legislative Backing

SDA funding is protected by legislation under the:

• NDIS Act 2013
• NDIS (Specialist Disability Accommodation) Rules 2020
• SDA Pricing Arrangements and Price Limits

Long-Term Security

The NDIS has bipartisan support with a 20-year legislative commitment, ensuring funding stability for SDA properties.

Why Is the SDA Initiative Important?

The NDIS aims to:

• Provide individuals with disabilities the freedom to choose where and with whom they live.
• Encourage an investor-driven market to build accessible housing.
• Deliver cost-effective solutions for the government by reducing the need for more expensive institutional care.

Conclusion

The NDIS and SDA programs offer a stable and impactful investment opportunity while supporting a critical societal need. With robust government support, transparent funding, and a clear market demand, investing in SDA properties can yield financial returns while contributing positively to the lives of individuals with disabilities.