NDIS Quarterly Report to disability ministers 30 June 2022
NDIS Property Report
Some highlights taken from the recently released report continue to demonstrate the need and success of SDA Property under the NDIS
Brief summary August 2022
Younger Participants in Aged Care
As at 30 June 2022, there are still 652 younger people with disability in residential aged care, who have a goal to leave residential aged care, including 33 under the age of 45.
The NDIA continues to support participants who are at risk of entering residential aged care, and those already living in residential aged care, to move into more age-appropriate accommodation. From 1 July 2021 to 30 June 2022, only 178 participants have transitioned from residential aged care into age-appropriate settings. This includes 32 who have exited to their own home (rented or owned), 39 who have exited to SDA, and 91 who have exited to other shared living arrangements using SIL funding or to other group residential settings. More about SIL Homes here
The NDIA continues to support younger participants currently residing in residential aged care to explore alternative home and living options. The NDIA has established a dedicated team to provide intensive, proactive, and individualised support in order to source age-appropriate accommodation and services for NDIS participants under the age of 65 who are currently living in, or at risk of entering, residential aged care.
Commitment by SIP means there will be a national SDA-matching website showing all available properties and introducing a standard form and application process for SDA, to streamline the current laborious process.
If you are SDA eligible, there will be an increase in the flexibility in living options available to you.
The total number of enrolled SDA dwellings continues to increase as have the number of participants, which increased by 13% annually over the past 3 years.
There were 19,358 enrolled participants as at 30 June 2022.
The average plan budgets for SDA supports increased by around 9% pa leading to an increase in total SDA supports in participant plans by around 23% pa. June 2019 it was S144m and as at June 2022, it reached $271m
The total number of enrolled SDA dwellings as at 30 June 2022 was 7,086, up by 31% annually over the last three years, and by 862 dwellings (14%), compared to a year ago at 30 June 2021.
This increase was observed across all design categories, except for Basic stock which saw a 1% reduction (23 dwellings). The largest relative increase was for dwellings of the High Physical Support category (35%, to 514 dwellings), followed by dwellings of the Robust design category (25%, to 96 dwellings). Overall, all States and Territories saw increases in enrolled dwellings.
Price limits for SDA have increased by 5.1% based on the change to CPI
Total SDA payments increased by 49% pa over the last 3 years from $56m to $186m, resulting in the average SDA payments per participant increasing by 27% per annum.
As at 30 June 2022, there were 2,993 participants in an SDA dwelling seeking an alternative dwelling. There were an additional 1,727 participants who were not in an SDA dwelling seeking a vacancy. Of the combined 4,720 participants seeking SDA dwellings, 1,607 (34%) were for the Improved Liveability design category and 1,279 (27%) were for High Physical Support. See previous blog here for demand.
The NDIA continue to support the developing NDIS market such as developing home and living options, and partnering with the sector to improve quality and outcomes of support coordination.
The “Making SDA Better” project has resulted in a series of fast tracked initiatives to improve how SDA supports are delivered and strengthen the efficacy of the SDA market.
Our takeaway from the Report
The SDA Programme is for the most part a success and a much needed programme to help get people with disability into suited accommodations.
The need for further SDA dwellings continues to increase Australia wide as more participants join the NDIS as well as apply for packages to be accommodated in a Specialist Disability dwelling.
The number of participants in the largely successful NDIS programme is edging towards 600,000 NDIS participants of which it is estimated that 6% qualify for SDA. The original budgeted requirement was for 29,000 SDA participants and this number is fast growing towards 36,000 with many still desperately seeking SDA accommodations.
The industry is maturing yet at the same time new sales and marketing companies are jumping on the ‘band wagon’ offering SDA dwellings that are well suited to investors (on paper), and unsuited to participants due to location, floor plan, design etc.
The consultants in this space who are building fit for purpose homes to comfortably accommodate participants in locations close to infrastructure are exceeding the minimum requirements of the NDIS and attracting participants. The purpose of the SDA programme under the NDIS is to give participants choice of where they want to live so that they may thrive.
Our market research demonstrates that those SDA’s marketed to investors ‘greed’, in unsuited locations and on unsuited floor plans are not attracting participants, even at a time of dire need. Please be mindful and view our blog on this subject here.
A concern from investors is the media representation that NDIS packages are being cut back. This concern is unfounded when it comes to SDA. The SDA has it’s own annual budget that is not affected or determined by the NDIS package the other 94% of participants under the NDIS qualify for or not qualify for as far as NDIS services go.
In summary : SDA is maturing into a successful programme that is in short supply and high demand. Build fit for purpose in a location that meets participants needs on a floor plan that is generous which appeals to your participant, their families and their carers.
Read more on “what you should know about SDA Property under the NDIS” here