Understanding the 2025 SDA Pricing Framework Changes

The National Disability Insurance Agency (NDIA) has published significant updates to the Specialist Disability Accommodation (SDA) Pricing Arrangements and Price Limits for the 2025–26 financial year. These changes have implications for both SDA participants and registered providers across Australia.

What's Changed in the 2025-26 SDA Pricing

The most notable update is the increase to SDA price limits across several design categories. The NDIA has recognised the rising construction and land costs affecting the viability of new SDA builds, particularly in regional areas. Key changes include:

Increased price limits for High Physical Support dwelling - recognising the additional cost of assistive technology integration, reinforced structures, and specialist fittings required for this design category. The new limits represent an average increase of approximately 5.2% nationally.

Regional loading adjustments - the NDIA has expanded the regional loading zones to better reflect the true cost of delivering SDA in areas with limited construction workforce availability and higher transport costs for building materials.

New build incentive maintained - the new build incentive, which provides higher SDA payments for newly constructed dwellings, continues for buildings enrolled within the first 10 years. This remains a critical driver for encouraging investment in new SDA stock.

Impact on Participants

For NDIS participants with SDA funding in their plans, these pricing changes are largely positive. Higher price limits mean greater financial viability for providers to build new homes, which translates to more housing options and shorter wait times.

Participants should be aware that SDA pricing doesn't directly affect their NDIS plan — SDA payments are made directly to providers. However, a more commercially viable SDA market means more providers are willing to invest in building new homes, particularly in regional and rural areas where demand has historically outstripped supply.

What This Means for Providers

For SDA providers like dwellSDA, the updated pricing framework provides greater certainty for project planning and investment decisions. The increased price limits, combined with the efficiencies of modular construction, make it possible to deliver high-quality SDA homes in areas that were previously marginal from a financial viability perspective.

We're particularly encouraged by the regional loading adjustments, which recognise the additional costs we encounter when building in regional Victoria, Queensland, and Western Australia. These adjustments make it possible to offer the same quality of accessible housing to participants regardless of their location.

Looking Ahead

The NDIA has indicated it will continue to review SDA pricing annually, with a comprehensive review scheduled for 2027. We expect this review will consider the evolving role of smart home technology, sustainability requirements, and the long-term maintenance costs associated with different construction methods.

At dwellSDA, we welcome these changes and remain committed to delivering high-quality, affordable SDA modular homes that maximise independence for NDIS participants.