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Validation of older SDA agreements

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Validation of some SDA agreements under Schedule 4 

This page is for SDA providers. If you’re an SDA resident or support person, read validation of SDA agreements – information for SDA residents and support people. 

Some SDA residency agreements created during the transition from the Disability Act to the Residential Tenancies Act have had unclear legal status. 
 
From 1 July 2026, new laws confirm that these agreements are valid and set out how they are covered, under a new Schedule 4 in the Residential Tenancies Act.  

These changes only apply to certain SDA residency agreements. Read who the changes affect below.  

Find out what these changes mean for you and what you need to do – and consider seeking independent legal advice if you need guidance on your specific circumstances. 

After the introduction of the NDIS, many SDA residents transitioned in 2019 from residential protections under the Disability Act to protections under Part 12A of the Residential Tenancies Act. 

There has been uncertainty about whether some of those SDA residency agreements were made correctly. This may be because: 

  • the SDA resident was living at the SDA enrolled dwelling or SDA dwelling when the SDA residency agreement was entered into or established 
  • SDA providers did not follow all the steps required to establish an SDA residency agreement (if applicable). 

Schedule 4 helps resolve this uncertainty. It confirms that those SDA residency agreements to which Schedule 4 applies are and have been valid and enforceable. 

Schedule 4 ensures that: 

  • SDA residents and SDA providers can continue to rely on their SDA residency agreements 
  • SDA residents continue to have protections under the Residential Tenancies Act. 

Schedule 4 will validate certain SDA residency agreements made with two groups of SDA residents: 

1. SDA residents who transitioned from the Disability Act to SDA residency agreements via Schedule 2 to the Residential Tenancies Act from 1 January 2020. This is referred to as Group 1 and is detailed below. 

2. SDA residents who transitioned from the Disability Act to SDA residency agreements via Schedule 3 to the Residential Tenancies Act from 1 July 2024. This is referred to as Group 2 and is detailed below.

Group 1: SDA residents who transitioned under Schedule 2

This group includes SDA residents who transitioned to the Residential Tenancies Act under Schedule 2 from 1 January 2020. 

Schedule 4 will likely apply if the SDA resident meets all of the following criteria: 

  • they: 
    • live or lived in an SDA enrolled dwelling 
    • were given a residential statement under the Disability Act before 1 July 2019 
    • did not have a tenancy agreement or SDA residency agreement on 1 July 2019, and 

  • could not enter into or establish an SDA residency agreement before 1 January 2020, and 
  • entered into or established an SDA residency agreement between 1 January 2020 and 30 June 2026 when they were already living in the SDA enrolled dwelling. 

Group 2: SDA residents who transitioned under Schedule 3 

This group includes former group home residents who became SDA residents on 1 July 2024.  

Schedule 4 will likely apply if:  

  • the SDA resident was a resident of a group home under the Disability Act on 30 June 2024 became an SDA resident on and from 1 July 2024 under Schedule 3, and  
  • entered into or established an SDA residency agreement between 1 July 2024 and 30 June 2026 when they were already living in the SDA dwelling.

Note: If any of the parties are unsure, or if there is a dispute about whether an SDA agreement is eligible for validation, an application can be made to VCAT to determine if the agreement is valid or not. 

Affected SDA agreements are valid 

Schedule 4 will deem that affected SDA residency agreements are, and always have been, valid and enforceable. 

This means that: 

  • an affected SDA resident and SDA provider may continue to rely on the SDA residency agreement 
  • the SDA resident will continue to have protections under Part 12A of the Residential Tenancies Act. 

If multiple SDA residency agreements were made with an SDA resident, each of those agreements will be treated as valid and enforceable for the time that the agreement was in place. 

An SDA resident can still choose to ask for a new agreement. Read 'What SDA providers must do'.

What Schedule 4 doesn’t change 

Schedule 4 does not: 

  • cure terms in an SDA residency agreement that are invalid, harsh or unconscionable. For example, if an SDA residency agreement includes a rent collection requirement that is invalid, Schedule 4 will not make that term valid. 
  • affect rights in existing proceedings 
  • interfere with legal matters that had started before 1 July 2026. 

If a person has already started a VCAT or Court proceeding before Schedule 4 started, their rights in that proceeding are preserved.  

Schedule 4 does not restart the matter, undo the proceeding, or take away rights that already exist in that proceeding. 

You must notify eligible SDA residents 

SDA providers must notify SDA residents that their SDA residency agreement has been validated. The notice must be: 

  • in writing 
  • in the form approved by the Director of Consumer Affairs Victoria [link] 
  • given by 31 December 2026 (being six months after the commencement of Schedule 4). 

The SDA provider does not need to give the notice if: 

  • the SDA residency agreement is or has been terminated 
  • a notice of intention to vacate has been given by the SDA resident and has not been withdrawn 
  • a notice to vacate has been given to the SDA resident and has not been withdrawn. 

You must give SDA residents a choice 

The notice must offer the SDA resident the following choices: 

Choice

 What it means 
Continue with the existing and now validated SDA residency agreement 
  • Schedule 4 will confirm that the SDA residency agreement is valid. 
  • The SDA resident will continue with their existing SDA residency agreement. 
Request a new SDA residency agreement 
  • The SDA resident can ask for a new SDA residency agreement. 
  • The request must be made in writing. 
  • The request may be given on behalf of the SDA resident by the SDA resident’s guardian or administrator, if any. 
  • Schedule 4 will allow the new SDA residency agreement to be made while the resident keeps living at the accommodation. 
Request a residential rental agreement 
  • The resident can ask for a residential rental agreement. 
  • The request must be made in writing. 

The SDA resident does not need to wait for the notice from the SDA provider before making a request for a new agreement. If an SDA resident does not express a choice, their current validated SDA residency agreement will continue until terminated. 

You must give SDA residents an information statement 

As soon as possible after an SDA resident requests a new agreement, the SDA provider must: 

  • give the SDA resident the appropriate information statement relating to the type of agreement they have chosen 
  • make all reasonable efforts to enter into or establish the agreement. 

Where a new agreement is entered into or established under Schedule 4, the SDA residency agreement that was validated is automatically terminated. 

SDA residents who request a new SDA agreement may stay in the SDA dwelling  

Usually, an SDA residency agreement must be made before the SDA resident moves into their accommodation. Schedule 4 allows a new SDA residency agreement to be made with an affected SDA resident while the SDA resident remains at the accommodation. 

All other requirements associated with entering into or establishing and SDA Agreement must be followed.  

You must notify Consumer Affairs Victoria 

Where a new SDA residency agreement is entered into or established under Schedule 4, SDA providers must notify Consumer Affairs Victoria (CAV) within 14 days after the agreement is made. Notify CAV. 

 

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