Insight + Resources
Understanding Reasonable Rent Contribution (RRC) for SDA: What You Need to Know
If you or someone you support is thinking about moving into Specialist Disability Accommodation (SDA), you might be wondering how much it costs and what financial support is available. We know navigating NDIS funding can be overwhelming, so we’re here to break it down simply.
As a leading national SDA provider, Vera Living is always here to help NDIS participants and their Support Coordinators understand what’s expected and how to plan for these costs.
What is Reasonable Rent Contribution?
The Reasonable Rent Contribution (RRC) is the portion of the rent that an NDIS participant is expected to pay when they live in SDA. The NDIS then covers the rest of the cost through SDA funding.
Here’s the good news:
- RRC is set at an affordable rate, and the way it’s calculated is straightforward.
- The goal is to make sure participants can comfortably afford their SDA while still having enough money for other essentials.
How is the Reasonable Rent Contribution calculated
The amount of rent an SDA provider can charge must not exceed the amount of the maximum reasonable rent contribution (MRRC). The MRRC is calculated by the NDIS and updated every six months. It’s calculated using a combination of the maximum basic rate of the Disability Support Pension, Pension Supplement and Commonwealth Rent Assistance.
Reasonable Rent Contribution Formula:
As of April 11, 2025, the maximum Reasonable Rental Contribution (RRC) for a single NDIS participant in Specialist Disability Accommodation (SDA) is $506.55 per fortnight. This amount is calculated based on the following components:
The Disability Support Pension is reviewed every six months and adjusted on 1 March and 1 September each year. Following those updates, the NDIA updates the maximum RRC rate that can be applied.
However, Vera Living will only adjust your rent once per year .
It's important to note that the RRC is a standardised contribution and Vera Living generally applies the same rate to all SDA tenancies regardless of the pension payments you actually receive. But, Vera Living considers the financial situation of all potential tenants and may be able to support participants experiencing financial difficulties by providing some relief with the RRC amount, where reasonable. You can discuss this with your Participant Engagement Specialist.
(Government rates are updated annually, so it’s always good to check the latest figures!)
Who Pays the Reasonable Rent Contribution and How?
The participant (or their nominee) pays the RRC amount directly to their SDA provider.
There are two options to make the payment:
- Direct debit – we can set up a direct debit directly from a participant’s account.
- Centrelink – we can set up a direct payment deduction through Centrelink. This pays the SDA provider directly from the participant’s pension before it goes to their account.
This means participants never have to pay the full rent of their SDA home – NDIS funding takes care of most of it!
This means participants never have to pay the full rent of their SDA home – NDIS funding takes care of most of it! SDA providers do not typically cover additional living expenses, such as utilities (water and electricity) or internet. We do cover most rates and charges charged by the local council or other statutory bodies. Whilst the SDA provider covers most maintenance (e.g. repairing leaky taps, mowing the lawn), a participant may be required to cover the cost of any repairs or maintenance for items they damage or break.
Why Is RRC Important?
- It ensures SDA remains affordable for participants.
- It helps SDA providers cover operational costs while keeping the housing sustainable.
- It allows participants to budget effectively while maintaining their NDIS funding.
Support Coordinators: How to Help Participants with RRC
As a Support Coordinator, you play a vital role in helping participants understand and manage their RRC.
Here are some practical steps you can take to support participants, if needed:
- Explain the RRC calculation to participants and their families.
- Check DSP and CRA entitlements to ensure accurate budgeting.
- Assist in setting up payments to SDA providers.
- Ensure SDA funding in NDIS plans is correctly allocated.
- Support participants in financial planning to manage other living expenses.
An SDA provider and tenant must have the RRC payment authorisations and minimum service booking information in place prior to a tenant moving into a Vera Living property.
How Can Vera Living Help?
We know that working out costs can feel tricky. That’s why we’re here to support you every step of the way!
If you’re a participant or a Support Coordinator, we can help by:
- Explaining RRC and how it works
- Completing your Centrelink Rent Assistance Forms to ensure you are maximising the pension amounts you are eligible to receive
- Answering any questions you have about SDA funding
Understanding Reasonable Rent Contribution (RRC) is essential for NDIS participants and their Support Coordinators. By knowing how it is calculated and ensuring payments are made correctly, participants can live independently in suitable housing while maintaining their financial stability.
For the latest NDIS pricing updates, check the official NDIS Pricing Arrangements and Price Limits document on the NDIS website.
Vera Living are here as your personal SDA experts, offering tailored housing solutions for you or your client’s needs. We’re here to make your SDA journey as easy and stress-free as possible.
If you have any questions about RRC, SDA funding, or how we can support you, we’d love to chat.
