SDA Limited Cost Assumptions Review gets underway

In February, the Australian Government released the Final Report of the Specialist Disability Accommodation Pricing and Payments Framework Review and a revised Framework.

In its response to the Final Report, the Disability Reform Council announced there would be “an immediate review of the pricing assumptions consistent with Section 25 of the revised SDA Pricing and Payments Framework to resolve issues that providers consider may be creating unintentional disincentives for investment in particular regions or design categories, including location factors and build cost differentials for specific design categories.”

The NDIA has just announced that it is now consulting on this SDA Limited Cost Assumptions Review.

While the review will be open to consider all SDA cost assumptions, its primary focus will be on location factors, as well as construction cost assumptions for the various building types and design categories. Information about these assumptions are contained in the SDA Price Guide. The NDIA has confirmed that this review will not result in any reductions to current prices.

The next full review of SDA prices is scheduled to occur in 2023.

If you have built (or have considered or are considering building) an SDA property and have views on the location factors and/or construction cost assumptions for building types and design categories, please contact Philippa Angley by 13 May. Submissions to the review must be received by Friday, 17 May.

In a related development, new Rules for SDA came into effect in late March. These rules will improve access to SDA by removing the requirement that participants have to exhaust other options before they can receive SDA funding in their plan. Changes also clarify eligibility requirements, allowing funding to be placed in participant plans earlier. Further amendments are expected in July that will remove restrictions that make it difficult for some families to live together.

NDS is represented on the NDIA’s SDA Reference Group by David Moody, Acting CEO. This group is focused on:

•The implementation of SDA policy

•Market development

•Pricing assumptions

•Innovation and best practice

•Participant experience of SDA processes, market and housing outcomes

•Clarity of information

Contact information

Philippa Angley, Head of Policy, 03 8341 4302, philippa.angley@nds.org.au