Updated on February 10, 2026
Finding the right living arrangement is one of the most important decisions an NDIS participant can make. While some people thrive in shared supported environments like Supported Independent Living (SIL), others want more flexibility, autonomy, and control over how and where they live. This is where Individual Living Options (ILO) come in.
This guide breaks down what ILO is, how funding works, who it’s for, and how to plan effectively, so you can confidently explore whether ILO is right for you or your loved one.
What Are Individual Living Options (ILO)?
Individual Living Options (ILO) is a type of NDIS home and living support that focuses on how a person lives rather than where they live. Rather than placing participants into standardised housing arrangements, ILO allows individuals to design a living setup that reflects their preferences, support needs, and personal circumstances.
Under an ILO arrangement, a participant might:
- Live alone with drop-in or scheduled support.
- Live with a trusted friend or informal support person.
- Live with a host or housemate who provides some daily support.
- Remain in their current home while receiving tailored assistance.
Importantly, ILO funding does not pay for rent, a mortgage, or the physical home itself. Instead, it funds the supports delivered within the home to help the person live safely, independently, and with dignity.
According to the NDIS, ILO exists to give participants greater choice and control over their living arrangements while ensuring their support needs are met sustainably.
How ILO is different from SIL and other NDIS Living Supports
ILO vs SIL
Supported Independent Living (SIL) is generally suited to people who require ongoing, rostered support, often in shared homes with 24/7 assistance. SIL works well for participants with higher or more complex support needs.
ILO, on the other hand, is highly personalised and flexible. Supports are designed around the individual rather than a shared household model. This makes the ILO ideal for people who want independence but still need regular assistance with daily living.
ILO vs SDA
Specialist Disability Accommodation (SDA) refers to the physical building, specialist housing designed for people with extreme functional impairment or very high support needs. ILO does not replace SDA; instead, ILO can be used alongside SDA to fund the supports delivered in that property.
How NDIS ILO Funding Works
Stage 1: Exploration and Design
Stage 1 funding allows participants to take the time needed to plan their ideal living arrangement. This stage focuses on understanding:
- Where the person wants to live
- Who they want to live with
- What supports do they need to live safely and independently
During this phase, participants typically work with a support coordinator, family members, and an experienced provider to design a tailored ILO model. Trials or short-term arrangements may be used to test what works best before anything is finalised.
The outcome of Stage 1 is a detailed service proposal submitted to the NDIA that outlines the recommended living arrangement and support structure.
Stage 2: Ongoing ILO Supports
Once the NDIA approves the ILO design, Stage 2 funding covers the ongoing support required for day-to-day living. These supports are typically grouped into two categories:
Primary Supports
Primary supports are the main sources of daily assistance and may be provided by:
- A housemate or host
- A live-in or informal support arrangement
- A combination of informal and paid support.
These supports help with routines such as personal care, meal preparation, household tasks, and emotional or practical assistance.
Supplementary Supports
Supplementary supports provide flexibility where needed. This might include:
- Additional paid support workers
- Skill-building supports
- Backup or on-call assistance
The NDIS uses funding bands to determine how much support is allocated to an individual, based on their needs. These bands commonly range from approximately $105,000 to $230,000 per year, depending on complexity.
What ILO Funding Does and Does Not Cover
What ILO Funding Can Cover
- Support worker assistance
- Help with daily living tasks.
- Capacity building and skill development
- Informal support arrangements where appropriate
- Backup or contingency support
What ILO Funding Does Not Cover
ILO funding is designed to support the arrangement of your living situation, not the cost of the housing itself or everyday expenses. Such as:
- Rent or mortgage payments
- Utility bills
- Groceries and personal expenses
- General household costs
These costs are considered everyday living expenses and remain the participant’s responsibility.
Who is ILO Funding Suitable For?
ILO is best suited to NDIS participants who:
- Have goals related to independent or semi-independent living
- Need regular support but not necessarily 24/7 supervision.
- Want flexibility in who provides their support.
- Are willing to engage in planning, trials, and reviews
Eligibility is assessed under the NDIS “reasonable and necessary” criteria, using evidence such as functional assessments, reports, and personal goals.
Benefits of ILO for Participants and Families
- Greater autonomy and control over daily life
- Living arrangements that feel natural, not institutional
- Supports that adapt as needs change
- Reduced pressure and burnout for family carers
By focusing on capacity building, ILO can also help participants develop skills over time, potentially reducing reliance on formal supports in the long term.
Common Challenges
- Unclear expectations about what funding covers
- Delays in approval due to limited evidence
- Changing support needs over time.
These challenges are best addressed through proactive planning, clear documentation, and ongoing collaboration with experienced providers who understand the ILO framework.
How Centre Disability Support Can Help
At Centre Disability Support, we understand that independent living looks different for everyone. Our team supports participants and families through every stage of the ILO journey, from exploration and planning to implementation and ongoing review.
We work closely with you to:
- Clarify your home and living goals.
- Design practical, person-centred ILO arrangements.
- Coordinate supports and advocate during plan reviews.
- Adjust supports as your needs and goals evolve.
If you’re considering ILO or want to understand how it fits into your NDIS plan, contact us today to start designing a living option that truly works for you.
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