The Western Australian government is missing the tremendous opportunity offered by the Specialist Disability Accommodation (SDA) program under the National Disability Insurance Scheme.
As a result, the state lags the rest of the nation, and people in WA with significant disability are marooned in ageing government group homes.
Government-owned group homes form part of the state government’s Community Disability Housing Program operated via the Department of Communities.
They generally comprise older or institutional-style disability accommodation.
Most government group homes are near the end of their functional lives as disability accommodation or may no longer be fit for purpose in meeting community expectations and best practice.
The intent of SDA funding is to encourage replacement of these homes across Australia by leveraging the capital and development potential of the private sector.
It is a game changer for people with disability and has attracted significant institutional capital and private development capability, eager to play a role in building new SDA homes in WA.
Notwithstanding an announcement to the contrary in December 2020, WA remains the only state with no group homes enrolled as SDA under the NDIS.
States such as Victoria began this journey as early as 2016 when the scheme was introduced.
Whether or not the state government enrols its homes in SDA is a moot point, for me.
What’s more important is to understand that, through its ownership of these group homes, the government accommodates the majority of SDA-eligible participants in WA (i.e. future SDA demand).
It therefore has a significant influence on the speed and efficiency of how the SDA market in WA will develop.
Yet we are less clear today on the WA government’s strategy than we were two years ago when it made its announcement.
There are other hurdles to the SDA rollout in WA.
Not-for-profit disability support providers are often the caretakers of these homes (not to mention highly influential in conversations with participants about the opportunities offered by SDA).
The current SDA scheme does not support them to facilitate the transition of their participants from existing group homes to replacement SDA.
In fact, in some cases, it actively penalises them by imposing market rent on what have otherwise been peppercorn leases.
Also, the WA legislative framework remains blind to SDA, resulting sometimes in unorthodox arrangements between financiers, developers and providers intent on jumping through the hoops to bring product to market.
The ultimate effect of the lack of decisive action by the state government – and the justifiable reluctance of support providers – is that the rollout of the SDA program is well behind the rest of Australia.
What is lost is an opportunity for people with disability, for developers and institutional capital, but also for the state government.
Ultimately, the faster WA’s group homes are replaced by new (federally funded and fit-for-purpose) SDA, the faster the government can reclaim and reuse the older homes to take pressure off its growing social housing wait list.
It is worth noting here that many people on the social housing waitlist have disabilities that require accessible housing but are not so severe as to render them eligible for SDA.
Many current homes in the government’s social housing stock are not accessible and these groups homes could play an important role in re-homing these people. Social housing and housing affordability will continue to be significant challenges for the government, which will need private sector involvement to reverse what is becoming a growing problem.
Despite the state government allocating record funding to boost housing and homelessness in WA, greater coordination is clearly required across government at policy, ministerial and strategic levels to leverage a very willing and able private sector.
The state government must decisively step up and work with the federal government, the disability sector, the private sector and NDIS participants.
The prize is more social housing and, critically, the opportunity for the NDIS to truly deliver on its mission.
- Amber Crosthwaite is a commercial lawyer specialising in seniors living, aged care and disability
