Paterno and National Disability Insurance Agency

This matter concerned an application by Ms. Paterno against the National Disability Insurance Agency (NDIA) before the Administrative Appeals Tribunal. Ms. Paterno sought funding for specialist disability accommodation (SDA) in the form of a two-bedroom, single-occupancy apartment, arguing that her current group home arrangement was unsuitable for her high physical support needs and did not facilitate her NDIS goals. The NDIA had previously rejected her request for an individual residence, maintaining that her existing SDA approval for a three-resident house was appropriate and represented better value for money and was more effective and beneficial under section 34(1) of the *National Disability Insurance Scheme Act 2013* (Cth).

The Tribunal was required to determine whether funding for a sole occupancy, two-bedroom SDA apartment was reasonable and necessary within the meaning of section 34(1) of the NDIS Act, considering the SDA Rules. This involved assessing the appropriate building type, design category, and location for Ms. Paterno's SDA, and whether the proposed accommodation met the threshold for the expenditure of public funds, aligning with the objects and principles of the NDIS Act and facilitating Ms. Paterno's full participation in the community.

The Tribunal's reasoning focused on the SDA Rules, particularly sections 14, 15, 16, 17, and 18, and the overarching principles of reasonable and necessary supports as articulated in *National Disability Insurance Agency v WRMF*. The Tribunal accepted that Ms. Paterno met the eligibility criteria for SDA and that the appropriate design category was high physical support, with an appropriate location in NSW – Illawarra. Crucially, the Tribunal found that the NDIA's previous decision did not adequately consider Ms. Paterno's specific needs and goals, including her need for privacy, reduced reliance on person-to-person support, and the ability to foster meaningful community connections. Expert evidence from an occupational therapist supported the suitability of a two-bedroom apartment for Ms. Paterno's equipment and support requirements.

Consequently, the Tribunal set aside the NDIA's decision and substituted a new decision. Ms. Paterno was found to be entitled to SDA funding for an apartment, sole occupancy, two bedrooms, with a high physical support design category, located in NSW – Illawarra, with funding capped at $126,162.57 per year.