Strengthening the SDA System for Participants and Investors

However, delays in activating SDA funding after participants move into their new homes are creating unnecessary financial pressure on the investors who help deliver this much-needed housing – raising concerns the issue could discourage future investment and ultimately impact the long-term supply of SDA.

GR8 Disability Housing Managing Director Perry Kleppe said the issue was becoming increasingly common and highlighted the need for the NDIS's administrative processes to better support the housing model it has created.

"The NDIS has changed lives by enabling people with disabilities to access purpose-built homes that support greater independence, safety and quality of life," Mr Kleppe said.

"But we're regularly seeing situations where participants have moved into their new home, all the required paperwork has been submitted, yet the SDA funding hasn't been activated within their plan.

"During that time, investors are covering mortgage repayments, insurance and other holding costs without receiving the SDA income the property was designed to generate."

Unlike most other NDIS supports, SDA funding often requires additional internal processing before it becomes claimable. Even once activated, providers must complete a separate manual process to recover payments from the participant's move-in date, meaning investors can wait several more months before receiving the income they're owed.

Mr Kleppe said the bigger concern was the impact these delays could have on future housing supply.

"Private investors play a critical role in delivering SDA. If confidence in the system declines because of ongoing payment delays, fewer people may be willing to invest in these homes," he said.

"Ultimately, it's participants who stand to lose if fewer SDA homes are built."

That concern has become a reality for one GR8 investor, whose SDA home in Clarkson welcomed a participant, a mother living with disability and her two children, in December 2025 after all required documentation had been submitted to the NDIS the previous month.

More than five months later, the property's owner was still waiting for the SDA funding to be activated, having received only the participant's reasonable rent contribution.

The owner, who wished to remain anonymous, said he and his brother invested in SDA because they wanted to make a positive difference while building a sustainable long-term investment.

"It seemed like a win-win. We could provide a purpose-built home for people who need additional support while making a sound long-term investment."

Instead, the delays have placed significant financial pressure on his family.

"More than $34,000 in payments is still outstanding while we've continued paying the mortgage and other holding costs.

"We're now borrowing from family and friends just to keep up with our loan repayments."

He said the delays came after an already lengthy investment journey.

"We funded the build over 12 months and had handover of the property in July 2025. It then took several months to find the right participant, followed by another five months waiting for the SDA funding to be activated.

"By the time we received our first month's payment, we'd effectively been funding the property ourselves for almost two years."

Despite the challenges, he said knowing the home had made a genuine difference for the participant and her family made the investment worthwhile.

"It's incredibly rewarding knowing the home has given a mother and her children somewhere they can live together while she receives the support she needs."

However, he believes the current system will discourage others from investing.

"I wouldn't invest in SDA again under the current system."

Mr Kleppe said the issue wasn't the model itself, but the administrative processes supporting it.

"The NDIS has created an innovative model that relies on private investment to increase the supply of SDA, and overall it's been enormously successful," he said.

"What needs to improve is the speed at which SDA funding is activated once a participant moves into their home.

"Supporting investor confidence is ultimately about supporting participants. The more confidence investors have in the system, the more SDA homes will be built for Australians who need them."