Last month the NDIA released two key documents that will guide the future of the Specialist Disability Accommodation (“SDA”) market in Australia.

One of these documents was the update to the SDA Price Guide (and the other was the NDIS Innovation Plan, which we discuss here.  To assist those that are looking to develop, operate or reside in SDA dwellings, we set out below the key features of the updated SDA Price Guide that you should be aware of.

SDA Price Limit Increases

From 28 October 2019, SDA price limits have increased in a number of areas to encourage investment in a diverse range of dwellings.

The NDIA conducted an SDA Limited Cost Assumptions Review in May 2019 which provided a wide range of sector feedback. The price increases are in response to the analysis of this feedback.

The SDA price increases apply to the following

  • new builds in two SDA design categories:
  • Fully Accessible — increase in construction cost assumptions by 16%—increasing price limits between 10.1 and 16.4%; and
  • Robust — increase in construction cost assumptions by 14%—increasing price limits between 9.4 and 14.1%
  • New build SDA dwellings in one of the listed locations with increases to some location factors increasing price limits 4.0–10.5%:
  • apartments only
    • NSW – Sydney – City and Inner South; Eastern suburbs and Inner West
    • VIC – Melbourne – Inner East and Outer East
  • houses and apartments
    • VIC – Melbourne – South East.

Claiming new price limits

No action is required from participants or providers.

Participants

The price changes will be accommodated in new participant plans created from Monday 28 October 2019. Participants with existing plans will have the new prices applied upon their next scheduled plan review.

Providers

Providers are not to implement the price changes in existing plans affected by the change. The NDIA has compiled a list of affected providers will proactively be contacting them directly to discuss forward payment-claiming and backdating processes.