For people with significant disabilities, having a safe and suitable place to live can bring about normality, increased independence and quality of life. The Specialist Disability Accommodation (SDA) program under the National Disability Insurance Scheme (NDIS) in Australia aims to provide this. However, there is a part of the SDA rules called Appendix H that creates confusion and bottlenecks in the funding process.
What is Appendix H?
Appendix H is a part of the SDA rules that affects how much funding someone receives based on their living arrangements with another person. For example, if a participant has live-in family members who are not eligible for SDA, funding can be adjusted which helps them reside together. While this sounds straightforward, the lack of a clear process for confirming Appendix H funding is causing significant issues for SDA providers and participants alike.
Appendix H can only be used for shared homes, not single dwellings like a 1-bedroom villa with an OOA room. In a 3-bedroom SDA home with an OOA room, if two residents have SDA funding and one does not, the SDA funding is adjusted as if the home had only two bedrooms instead of three. SDA-funded participants have rent that follows price regulations, while the resident without SDA funding pays a separate, unregulated rent.
The Current Process: Uncertainty and Delays
Currently, participants eligible for SDA don’t know how much Appendix H funding they’ll receive until an SDA provider gives a quote, which then goes back to the NDIS to input Appendix H funding. This leaves participants in limbo, unsure if they can afford their planned living arrangements. This uncertainty also impacts SDA providers and investors who need to plan and build suitable accommodations for people with disabilities and their families.
Legal Requirements: The Need for a Clear Process
According to Section 19 (1) (ii) of the SDA Rules, the plan for an eligible participant must include the amount of support they’ll receive. This means that the National Disability Insurance Agency (NDIA) should clearly state the funding amount early in the process.
A tribunal decision (QKNJ case) further emphasized that funding decisions are essential and should be made early to help participants plan their lives. The tribunal stated that deciding on funding is not a separate step but a necessary part of the overall decision-making process.
The NDIA’s Current Approach: A Misinterpretation
The NDIA often treats Appendix H as just a pricing arrangement rather than a formal decision. They argue that the adjustment to funding happens when a quote is approved, not as part of the initial decision. This interpretation is incorrect because funding decisions should be confirmed earlier as part of the participant’s plan.
The Solution: Establishing a Clear Process
There should be a clear and early process for confirming Appendix H funding. This means participants would know upfront if they are getting support and how much it will be. This process would involve the NDIS outlining appendix H funding in participants plan at the time of creation. 
Benefits of a Clear Process
For Participants:
- Reduces stress and uncertainty.
- Helps them plan their housing and living arrangements without last-minute surprises.
For SDA Providers and Investors:
- Makes it easier to plan and build suitable housing.
- Reduces financial risks because they know the funding is confirmed early on.
Legal Requirements:
- Follows the self-imposed rules that say funding amounts should be included in the participant’s plan.
- Recognises the tribunal decision that participants need all the information relevant to their plan once it is created.
A Call for Action
By having a clear process for confirming Appendix H funding early, we can ensure that participants get the support they need and can plan their lives better. It will also help SDA providers and investors plan and build suitable housing without unnecessary risks. The NDIA should recognize this need and implement a process to confirm funding as part of the initial decision-making.
Together, we can create a more supportive and efficient system for people with disabilities, providing them with the certainty and clarity they deserve.