Information for SDA Investors

The Specialist Disability Accommodation (SDA) market is new and evolving. The SDA Alliance has become aware that unrealistic [or potentially false representations] are being made by some organisations involved in the sector. The Federal Government is also aware of these representations and has raised its own concerns. Previously, Minister Stuart Robert made the following statement in relation to such behaviour:

'The Government reserves the right to use the full gambit of its powers including our Fraud Taskforce, ASIC’s product intervention powers, design and distribution obligations requirement and further registration and audit powers if needed, including using of statement of tax records.  The NDIA and the NDIS Quality and Safeguards Commission will be working together, alongside other regulatory agencies such as the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC), to stamp out bad behaviour that may bring the SDA market into disrepute.'

SDA is complex and requires specialist knowledge to develop and operate.  Those interested in investing in SDA are advised to consider and seek specialist advice in relation to the following items:  

• Be wary of any claims that look too good to be true. For instance, be wary of suggested returns on investment that appear to be excessively high.

• Ensure that the dwelling has suitable planning approval from local government for the intended purpose.

• Ensure that the dwelling is certified to comply with the requirements of the National Construction Code (NCC).  

• Ensure that the dwelling is audited and complies with the requirements of the NDIS SDA Design Standard and other requirements outlined in the SDA Price Guide.

• Ensure that the SDA Provider who will be providing ongoing management services is registered by the NDIS Quality and Safeguards Commission.

• Ensure the dwelling is in a location, is a dwelling type, design category and configuration for which which you are confident there is potential demand.

• Be aware that each individual NDIS Participant must be specifically approved for funding to live in SDA, and that the application process is comprehensive and takes time. Only around 6% of the total number of anticipated NDIS Participants at full NDIS rollout are expected to be found eligible for SDA.

• Be aware that the NDIA provides no guarantee that an SDA vacancy will be filled, and until an SDA approved Participant moves into the dwelling no SDA Payment will be made or received.

The matters identified above are provided for information purposes only and cover only some of the main issues for consideration for potential investors in SDA projects. The SDA Alliance recommends that anyone considering investing in an SDA project seek independent financial and legal advice and should not rely on the information herein.

The SDA Alliance will not be liable for any claim, loss or liability caused by or arising out of a person’s reliance on the information above including where a person has relied on this information to determine the financial viability of an SDA project.