The National Disability Insurance Agency (NDIA) administers the National Disability Insurance Scheme (NDIS). The NDIA has provided a range of NDIS pricing updates so far in 2022. Read on to find out everything you need to know about NDIS property investment and the impact of these updates.
What is NDIS property investment?
NDIS property investment involves buying or building specialist disability accommodation (SDA) for use by eligible NDIS recipients. Only NDIS recipients with disability and associated support needs are eligible for SDA (which is approximately 6% of all NDIS participants), and these homes must meet strict design requirements in order to be approved.
NDIS property investment is a socially-minded ethical investment because it helps to significantly improve an SDA recipient’s quality of life. It can also deliver secure, above-average investor returns compared to other types of property investment. This is because rental returns are guaranteed by the government. There is also a shortage of SDA properties in many areas across Australia, which helps to reduce the level of vacancy risk.
NDIS maximum reasonable rent and board contribution updates
Investors now have the option of charging more rent with the maximum reasonable rent and board contributions for SDA increasing on March 20, along with increases to the disability support pension.
The maximum reasonable rent contribution for SDA increased to $398.18 per fortnight for a single person, and $252.15 per fortnight for each member of a couple.
The maximum board contribution for SDA has increased to $464.50 per fortnight for a single person, and $350.10 per fortnight for each member of a couple.
Maximum reasonable rent and board contributions are updated in March and September each year at the same time as disability support pension rates are updated.
NDIS COVID-19 related payments for property investors
Up to $300 for a one-off COVID-19 deep cleaning service on a property is available if you have a resident in your specialist disability accommodation (SDA) who tests positive for COVID-19, or if one of their support workers or visitors does. This claim can be made directly to the NDIA by a registered supported independent living (SIL) provider.
People with disability are vulnerable to COVID-19, so it’s crucial that their accommodation is kept as COVID-free as possible.
NDIS pricing updates for SDA multi-design category dwellings
If you have an SDA dwelling that satisfies multiple design categories (i.e. two or more of the four categories (improved liveability, robust, fully accessible and high physical support), then there is a maximum price you can charge per SDA recipient that you have in each design category.
Each bedroom is priced separately. For example, if you have a 2-bedroom residence and one of the bedrooms meets the high physical support design standard and the other meets the improved liveability standard, then you can charge the maximum rate for each.
The NDIA increases SDA price limits and refurbishment thresholds in line with changes to the consumer price index.
It you’re an investor, it’s important to keep up to date with NDIS pricing updates to maximise the return on your SDA property investment.