NDIS / SDA: the highest-yield asset class the Budget didn't touch
Specialist Disability Accommodation continues to deliver 10-14% gross yields, fully government-backed, and sits inside the new-build tax envelope. Here's the structural case.
SDA is the rare asset class that combines new-build tax treatment, Commonwealth-funded rental income, and structural undersupply against legislated demand. The 2026 Budget left the NDIS pricing framework intact and, by tightening the negatively-geared universe elsewhere, made SDA's relative position stronger still.
For investors who can tolerate the development and tenant-coordination complexity, the yield profile is unmatched in Australian residential property.
The risks worth pricing in
SDA yields are high because the operational complexity is real. Tenant acquisition, SDA-provider relationships, and dwelling-design compliance all require specialist execution. Hera works with a tightly vetted panel of SDA developers and providers; we do not recommend SDA exposure outside that panel.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.