Updated on April 27, 2026
What the NDIS Considers When Assessing an ILO Request
ILO funding is considered under the NDIS “reasonable and necessary” criteria. This means the NDIA will look at whether the proposed supports:
- Are directly related to the participant’s disability
- Help the participant pursue their goals.
- Represent value for money compared to other supports (such as SIL)
- They are effective and beneficial in the long term.
The NDIA is not assessing your housing preference; it is assessing your support needs and how those supports will be delivered in your chosen living arrangement.
Confirm that ILO is the Right Living Option for You
ILO is generally appropriate for NDIS participants who:
- Want to live independently or semi-independently
- Need regular daily support, but not necessarily 24/7 rostered care.
- Prefer flexible or informal support arrangements.
- Want greater choice over who provides their support and how it’s delivered.
If a person requires constant supervision or intensive daily assistance, Supported Independent Living (SIL) may be a better option. Conversely, if someone needs little to no daily support, they may not require a formal home and living support at all.
Having this conversation early with a support coordinator or experienced provider helps avoid applying for a support that doesn’t align with your needs.
Set Clear Home and Living Goals in Your NDIS Plan
One of the most common reasons ILO applications struggle is unclear or vague goals.
The goal goes beyond saying you want to live independently; it must explain what support you need, why you need it, and how it relates to your disability. Stronger goals clearly link independence with specific support needs. For example:
“I want to live in my own home with structured daily supports to help me manage personal care, meal preparation, and routines safely.”
These goals should be included:
- During your NDIS planning meeting
- At a plan review
- Or through a change of circumstances, request
Clear goals give the NDIA a framework to assess your ILO request and understand why this support is necessary.
ILO Exploration and Design Funding
Stage 1 funding allows time and resources to:
- Explore different living arrangements.
- Trial support models
- Work with professionals to design a personalised ILO setup.
- Develop a detailed service proposal for NDIA approval.
This stage often involves collaboration between:
- The participant
- Family or informal supports
- A support coordinator
- An experienced ILO provider
In most cases, you cannot move straight to ongoing ILO supports without completing Stage 1.
Gather the Right Supporting Evidence
Evidence is one of the most important parts of a successful ILO application. The NDIA needs to clearly see why the supports are required and how they relate to daily living.
Useful evidence may include:
- Functional Capacity Assessments (often from an Occupational Therapist)
- Allied health reports
- Support coordinator reports
- A breakdown of daily living tasks and support needs
- Information about current informal supports and their limits
A common mistake is focusing on where you want to live rather than on what support you need. Evidence should always link back to:
- Safety
- Capacity building
- Independence
Develop and Submit the ILO Service Proposal
The ILO service proposal outlines how the individual’s living arrangement will work in practice, including where they will live and with whom. It details the primary supports involved, such as a host arrangement or housemate support, as well as any supplementary supports, such as paid support workers or backup assistance. The proposal also explains how risks will be identified and managed, demonstrates how the arrangement provides value for money, and clearly shows how the supports align with the participant’s NDIS goals and desired level of independence.
The NDIA uses this proposal to assess whether the ILO arrangement is reasonable, sustainable, and appropriate. This is where working with an experienced ILO provider is especially important. A well-structured proposal can significantly improve approval outcomes.
Once the ILO application has been reviewed, the NDIS may respond in several ways. This can include full approval of the proposed ILO supports, partial approval with adjustments to the level or type of support funded, a request for additional information or changes to strengthen the proposal, or a decision to decline the request if the supports are not considered reasonable and necessary.
If approved, ILO funding will be added to your NDIS plan within the agreed funding band.
What If Your ILO Request Is Declined or Reduced?
Common reasons an ILO request may be declined include insufficient or unclear supporting evidence, participant goals that are not clearly linked to the proposed support needs, inadequate cost comparisons with alternative supports, or a lack of clarity around why ILO is the most suitable living option for the individual.
If an application is not approved, next steps may include requesting clarification from the NDIA, providing additional supporting evidence, adjusting the ILO proposal to better align with the participant’s goals and needs, or requesting an internal review or plan reassessment to reconsider the decision.
Implementing ILO Supports Once Approved
Once approved, the focus shifts from planning to real-world implementation. Once ILO supports are approved, the focus shifts from planning to real-world implementation. This stage involves setting up support schedules, confirming the roles of both informal and paid supports, establishing monitoring and review processes, and gradually transitioning into the new living arrangement. ILO is intentionally designed to be flexible, allowing supports to be reviewed and adjusted over time as the participant’s needs, skills, and confidence continue to grow.
Applying for the ILO with Confidence
Applying for Individual Living Options under the NDIS is a detailed process, but it doesn’t have to be overwhelming. With clear goals, strong evidence, and the right professional guidance, ILO can provide a flexible and empowering pathway to independent living.
If you’re considering ILO or need support navigating the application process, Centre for Disability Support is here to help. Contact us today to start your ILO journey with confidence and clarity.
