NDIS Guide
If you have ever felt that NDIS accommodation options like Specialist Disability Accommodation or group home arrangements do not quite fit the life you want to live, NDIS Individualised Living Options (ILOs) may be what you are looking for. ILOs let you decide where you live and who you live with, then build NDIS-funded support around that choice — rather than the other way around.
What is an NDIS ILO (Individualised Living Option)?
An NDIS Individualised Living Option — usually called an ILO — is a flexible package of in-home support funded through your NDIS plan. According to the NDIS, ILO helps you make real choices about where you live, who you live with, and how you want to be supported — with the NDIS funding the support that makes it work.
The defining feature is the order of decisions. With most disability housing arrangements, participants are placed into an existing service model. With ILO, you choose the living arrangement first — a shared house with a friend, a room in a host family’s home, or your own place with chosen housemates — and then a support package is designed to fit that life.
ILO is designed for participants who need regular help with daily tasks but do not require 24-hour rostered care. It sits in the middle of the NDIS home and living support spectrum: more flexible and personalised than Supported Independent Living (SIL), and quite different from Specialist Disability Accommodation (SDA), which funds the building rather than the support.
How ILO is different from SIL and SDA
These three terms appear together constantly in NDIS conversations, and they are often confused. They are not interchangeable — each covers something different.
ILO
Individualised Living Options
Funds the support in your chosen home. You decide where you live; NDIS funds the people who help you there. Suited to moderate support needs without 24-hour rostered care.
SIL
Supported Independent Living
Funds support workers in a shared or individual home, typically alongside 24-hour rostered care. The home and the support are often arranged together by a registered provider.
SDA
Specialist Disability Accommodation
Funds the building — housing specifically designed or modified for participants with very high support needs or extreme functional impairment. SDA covers accommodation costs, not support.
The practical difference between ILO and SIL comes down to flexibility and control. SIL places you in a support structure; ILO builds a support structure around you. Some participants combine SDA (for the housing) with ILO (for the support) when appropriate, but these are separate funding streams with separate eligibility criteria.
Who is ILO right for?
ILO is not the right fit for everyone, and it is worth being honest about that before going through the exploration process. It generally suits participants who:
- Have moderate support needs — enough to require regular assistance, but not continuous overnight supervision
- Want to live in a specific arrangement they have chosen themselves, rather than in a service-allocated group home
- Are open to a host arrangement — where they live in someone else’s home and that person provides day-to-day support alongside their regular life
- Want more say over who supports them and how that support is structured
- Have some capacity for informal supports from family, friends, or a chosen community
ILO is generally not suited to participants who need very high or continuous support around the clock. For those situations, Supported Independent Living (SIL) is usually a better match. Your LAC or support coordinator can help you work out which option fits your needs and goals.
What does NDIS ILO funding actually cover?
ILO funding covers two main categories of support. Understanding the difference helps when you are designing your support package in Stage 1.
01
Primary supports
The people you live with who provide ongoing day-to-day support. This is either a host — someone you live with in their home — or a housemate — someone who lives in your home. NDIS funding contributes to the host’s or housemate’s costs in recognition of the support they provide.
02
Supplementary supports
Additional support workers who visit regularly to assist with tasks your host or housemate does not cover — personal care, community access, therapy coordination, and similar day-to-day supports. These are funded alongside your primary support arrangement.
A host arrangement specifically means you live full-time in your host’s home. A housemate arrangement means you live in your own home or a shared rental and your housemate provides some support as part of living together. Both arrangements are funded and formalised through your NDIS plan — they are not informal family arrangements.
The two stages of ILO: exploration, then support
Getting ILO into your plan is a two-stage process. Understanding both stages upfront prevents surprises.
Stage 1
Exploration and Design
This stage is funded in its own right. You work with a support worker or coordinator to explore what kind of home life you want, meet potential hosts or housemates, and design a support package that fits your goals and circumstances. You are not locked into any arrangement during this stage — it is about finding what works before anything is formalised. The NDIS funds this exploration time, so you are not paying out of pocket to do the groundwork.
Stage 2
ILO Support (ongoing)
Once you and the NDIS agree on your living arrangement and support package, the ongoing ILO funding begins. Your plan is updated to include the host or housemate contribution and any supplementary supports. From here, the support runs as agreed — reviewed at your next plan review or sooner if your circumstances change.
The full process from starting Stage 1 to having ILO approved and running in your plan takes time — in some cases, several months. If you are currently in another living arrangement and want to move to an ILO, starting the exploration process before your current plan expires gives you more room to plan properly.
How plan management works with your ILO
ILO participants often have more providers to manage than most. A host or housemate contribution, supplementary support workers, therapists, and community access providers can all be running simultaneously under your plan. Keeping track of invoices, claims, and spending across those providers takes real administrative effort.
This is one situation where NDIS plan management makes a practical difference. A plan manager takes care of all invoicing and payments to your providers, tracks your ILO support budget in real time, and alerts you if any category is running low. You do not need to process individual claims through myplace or manage relationships with each provider directly.
Plan management is funded from a separate Improved Life Choices budget — approximately $104.45 per month — which is added to your plan alongside your ILO funding. It does not reduce your ILO support or any other part of your plan. If plan management is not already in your plan, you can request it through your LAC or by calling the NDIA on 1800 800 110. Our independent comparison of NDIS plan managers can help you find one that handles ILO payment complexity well.
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Frequently Asked Questions About NDIS ILOs
What is the difference between ILO and SIL?
SIL (Supported Independent Living) funds support workers in a service-provided home, typically for participants who need 24-hour rostered care. ILO lets you choose your own living arrangement first — whether that is with a host, housemates, or in your own place — and then builds support funding around it. ILO generally suits participants with moderate support needs who want more control over where and how they live.
Does ILO funding include rent?
No. NDIS ILO funding covers the people who support you — your host, housemates, or supplementary support workers. It does not pay for rent, food, electricity, or any other housing cost. Those remain your personal expenses, typically covered through your disability support pension or other income.
How long does the ILO process take?
The timeframe varies depending on your circumstances and how complex your support needs are. The exploration and design stage alone can take several weeks to a few months. Having ILO approved and running in your plan after that adds further time. If you are considering ILO, starting the Stage 1 exploration before your current plan reaches its end date is strongly recommended.
Can I become an ILO host or housemate?
Yes. Hosts and housemates are an important part of the ILO model. If you have a spare room and are interested in providing support to an NDIS participant as part of daily life, you can register your interest through NDIS-registered ILO providers. The NDIS contributes toward the host’s or housemate’s costs in recognition of the support role they play.
Do I need informal supports for ILO?
Not necessarily, but having some informal support in your life can strengthen an ILO arrangement. The Stage 1 exploration process will look at your whole situation, including family, friends, and community connections, to design a support package that fills in the gaps rather than replacing everything. Some ILO arrangements work well with minimal informal support; others rely more heavily on it.
Can I use unregistered support workers with ILO?
If your NDIS plan is plan managed, yes. Plan management lets you pay both registered and unregistered NDIS providers — which significantly widens your options for finding the right supplementary support workers for your ILO arrangement. If your plan is agency managed (NDIA-managed), you are limited to registered providers only. See our guide to the best NDIS plan managers in Australia if you are considering switching to plan management.