Many families have been navigating the National Disability Insurance Scheme (NDIS) for months, sometimes years, before anyone mentions individualised living options. If that's you, it's not a failure on your part. ILO is genuinely underexplained in the system, and many planners and coordinators don't raise it proactively.

This guide covers what ILO actually is, the four arrangement types, who it suits, how funding works through the two-stage process, how it compares to Supported Independent Living (SIL) and Specialist Disability Accommodation (SDA), and what practical steps you can take to explore it. For a broader overview of all six NDIS home and living support types, including ILO, our navigation guide is a good starting point.

[IMAGE SUGGESTION: A person with disability sitting comfortably in a home setting with a family member nearby, illustrating the concept of personalised, home-based living. Alt text: "Person with disability and family member at home, representing individualised living options under the NDIS"]

What Are Individualised Living Options?

Individualised living options is a support funding type under the NDIS. It lets participants design their own support arrangements around where and how they want to live, rather than being placed into an existing service model.

The "individualised" part is meaningful. Instead of moving into a shared house with a provider's set roster of staff, a participant with ILO funding works with an ILO provider to build an arrangement from scratch, centred on their own goals, preferences, and relationships. You can find the full definition and current details on the official NDIS guidance on individualised living options.

One thing to be clear about from the start: ILO is not housing funding. It does not pay for rent, a physical dwelling, or property modifications. It funds the support people who help a participant live in housing they have chosen independently. This is a key distinction from SDA, which funds the specialist home itself.

The Four ILO Arrangement Types

ILO isn't one fixed model. It covers several different living arrangements, depending on where a participant wants to live and who they want to live with.

Living alone with support. The participant has their own home (private rental or family home) and receives drop-in support from paid workers when needed. This suits participants who want a high degree of independence but need some assistance with daily tasks.

Living with family or friends. The participant lives with people they already trust. NDIS funding under ILO supports formal paid supports layered around that arrangement, rather than replacing the informal support network.

Co-residency with a chosen housemate. The participant shares a home with a person they have selected. Both the living arrangement and the supports within it are designed together. Unlike a provider-managed group home, the choice of housemate belongs to the participant.

Host arrangements. The participant lives full-time with a host (someone unrelated to them, typically in the host's own home), where the host provides day-to-day support. The NDIS funds the host for their role.

The key thread running through all four types: the arrangement is built around what works for the participant, not what a provider has available. That said, not every arrangement type suits every person. Support coordinators play an important role in identifying which model fits a participant's situation.

Who Does ILO Suit?

ILO suits participants who want significant say over where and with whom they live, and who are willing to be actively involved in designing and managing their support arrangements.

It's particularly worth exploring for your family member if they:

• Do not need the specialist physical design features of SDA housing (ceiling hoists, reinforced construction, emergency power backup)
• Want more flexibility and self-direction than a structured SIL roster
• Have a trusted person, whether a family member, friend, or potential host, they want to build a support arrangement around
• Currently live in, or want to live in, standard housing (a private rental or the family home)

Here's the honest part: ILO is not the right pathway for every participant. If your family member needs SDA's specialist physical design features, check whether they may be eligible for SDA instead. If they need high levels of structured daily support that require a full SIL arrangement with 24/7 staffing, SIL may still be the better fit.

ILO also requires more involvement from the participant and family than SIL does. That flexibility is a genuine strength, but it comes with more work upfront. If a coordinator hasn't raised ILO with you and the above points sound relevant, ask them directly whether it's worth exploring.

Is ILO better than SIL? It depends entirely on your family member's situation. Neither is objectively better. ILO offers more self-direction; SIL offers a more structured, provider-managed arrangement. Both can work well for the right person.

How ILO Funding Works: The Two-Stage Process

This is where ILO differs significantly from other NDIS support types. There are two distinct stages, each funded separately.

Stage 1: Exploration and Design

The NDIS funds a dedicated exploration phase before any ILO arrangement begins. This phase is designed for participants and families to work with an ILO provider and support coordinator to map out what an arrangement could actually look like: who might be involved, what supports are needed, and whether ILO is genuinely the right fit.

Exploration funding typically covers 30, 50, or 100 hours depending on individual circumstances, approximately equivalent to $3,000 to $10,000 in funding. It is funded under the Capacity Building Supports budget. You can view the NDIS funding details for ILO supports for current figures, as amounts are subject to NDIS Pricing Arrangements and Price Limits.

Importantly, you can explore ILO without committing to it. If the exploration phase reveals that ILO isn't the right fit, that clarity is itself a valuable outcome.

Stage 2: ILO Supports Implementation

Once the exploration phase is complete and an arrangement is designed, the NDIS may fund the ongoing supports. Funding is typically allocated in one of three bands, capped at approximately $105,000, $150,000, or $230,000 per year, depending on the complexity of the participant's support needs and what the arrangement looks like. Actual amounts vary by individual circumstances.

ILO funding covers the people who provide primary day-to-day support, plus supplementary paid supports as needed. It does not pay for housing costs, rent, or modifications.

[IMAGE SUGGESTION: A simple diagram or illustration showing the two stages of ILO funding: exploration phase leading into implementation. Alt text: "Two-stage ILO funding process diagram showing NDIS exploration and implementation phases"]

ILO vs SIL vs SDA: Which Is Right?

These three pathways often get confused because they overlap in purpose but are quite different in practice.

SDA (Specialist Disability Accommodation) funds the physical home. It applies only when a participant needs specialist housing design features, such as ceiling hoists, reinforced construction, or specific accessibility modifications. Paramount Disability Homes provides SDA housing across Melbourne. SDA funding does not cover supports.

SIL (Supported Independent Living) funds structured support staff, often in shared living arrangements. SIL is more provider-controlled and less participant-directed than ILO. For a detailed side-by-side breakdown, our SDA vs SIL comparison guide covers this in full.

ILO funds a support arrangement the participant designs around housing they have chosen independently, typically in standard housing rather than specialist-designed accommodation.

A participant can combine SDA and SIL (this is common). A participant can also live in standard housing with ILO funding. What a participant cannot do is use ILO funding to pay for SDA housing costs: these are separate funding streams.

The system isn't always clear-cut. If you're weighing up how to access SIL funding alongside ILO, a support coordinator with experience across both pathways is the right person to help. Every situation is different.

How to Access ILO: Practical Steps

Getting to grips with how to access ILO takes time. Here's what the process typically looks like.

1. Raise ILO at your next NDIS planning meeting or plan review. ILO won't necessarily be offered. You'll need to ask for it specifically. If a plan review is coming up, that's the right moment. Our guide to NDIS plan reviews explains how the review process works if you're not familiar with it.
2. Work with a support coordinator who has ILO experience. Ask specifically whether they've supported ILO exploration before. Not all coordinators have. The quality of your coordinator makes a significant difference to how smoothly the exploration phase runs.
3. Submit a formal home and living request. The NDIS Home and Living Supports request process applies. You'll need to submit a request with supporting evidence, typically from an occupational therapist or other health professional.
4. Find an ILO provider. Unlike SDA, ILO providers are support organisations, not housing providers. ILO is not available from all NDIS providers: you need to search specifically for providers registered under the ILO support category. Go to ndis.gov.au and use the provider finder, filtering by Individualised Living Options as the support category.
5. Allow enough time. From first hearing about ILO to having a live arrangement in place, allow several months at minimum. The exploration phase takes time. Finding a suitable provider takes time. That's not a reason to avoid it; it's just useful to know before you start.

[IMAGE SUGGESTION: A family sitting with a support coordinator reviewing paperwork, suggesting the planning and coordination process. Alt text: "Family meeting with NDIS support coordinator to discuss individualised living options access steps"]

Conclusion

Individualised living options is a flexible, participant-led support pathway that gives people with disability more control over where and with whom they live. If you've been navigating the NDIS for a while without hearing about it, you're not alone. The system doesn't always surface every option clearly.

As an SDA provider, we work with families across Melbourne who are exploring the full range of NDIS housing and support pathways. If your family member's situation points toward specialist housing with design features like ceiling hoists or accessible bathrooms, that's where SDA comes in and where we can genuinely help. If ILO turns out to be the better fit, a support coordinator experienced with individualised living options is the right next step.

Not sure which pathway suits your family member? Call us on (03) 9999 7418 or email admin@paramounthomes.com.au. We're happy to talk through the options honestly, no pressure, just a straightforward conversation about what might work for your situation.