We provide housing, not Supported Independent Living (SIL) services. That means we have no reason to push you in either direction when it comes to this comparison. What we've learned from families working through this decision is that the choice between SIL and residential care rarely feels clear-cut, and it shouldn't be rushed. This guide covers what each path actually involves, who each one suits, and the questions worth asking before you decide.

[IMAGE SUGGESTION: A warm photo of a family visiting a family member in a light-filled, accessible home. Alt text: "Family visiting their loved one in a purpose-built SDA home, representing the choice between SIL and residential care options under the NDIS."]

What Is SIL Under the NDIS?

SIL refers to the funded support services provided to a person in their home, not the home itself. That distinction matters. The National Disability Insurance Scheme (NDIS) funds SIL as a separate line in a participant's plan, covering things like personal care, domestic tasks, skill building, and community access.

Support intensity varies depending on your family member's needs. Some participants access 24/7 staffing, others daytime support only, and some a drop-in arrangement a few hours each day. The key point is that your family member chooses their SIL provider separately from wherever they live.

From 1 July 2026, SIL providers will be required to hold mandatory NDIS registration. This means the provider delivering support to your family member must meet formal quality and safeguarding standards.

For a complete overview of how SIL works, read our Supported Independent Living: Your Complete Introduction. If you're confused about the difference between the support (SIL) and the housing itself (Specialist Disability Accommodation, or SDA), our SDA vs SIL: Complete Comparison Guide explains how the two work together.

For the National Disability Insurance Agency's (NDIA) own definition, see the Supported Independent Living for participants page on the NDIS website.

What Is Residential Care?

"Residential care" covers two different arrangements that families often encounter.

The first is residential aged care, which is government-regulated accommodation typically for people aged 65 and over. It operates under the Aged Care Act, not the NDIS, and is generally not available to NDIS participants under 65 except in exceptional circumstances. The NDIA has a clear policy position here: no participant under 65 (and under 50 for Aboriginal and Torres Strait Islander peoples) should be living in residential aged care unless there is genuinely no alternative. The NDIS website has more on this at Living in and Moving Out of Residential Aged Care.

The second is group homes (sometimes called supported accommodation), which can be NDIS-funded or state-funded depending on the arrangement. Group homes typically involve shared living with on-site support staff. Some are excellent environments. Others vary considerably in quality and the level of choice they offer residents.

The honest framing is not that one type of residential care is always wrong. It's that families deserve to understand the real differences before making a decision.

SIL vs Residential Care: Key Differences

SIL and residential care serve different goals. SIL is a funded support service delivered in the participant's chosen home, giving them control over both where they live and who supports them. Residential care bundles housing and support together under one provider, which can simplify logistics but reduces that separation of choice.

Here are the key distinctions worth understanding:

Choice and control. With SIL, your family member chooses their support provider separately from their home. In residential care, housing and support come as a package, and residents typically cannot swap providers independently.

Funding pathway. SIL is funded through the NDIS as a support line in your family member's plan. Residential aged care uses different government funding under the Aged Care Act, which is not the same as NDIS funding. This matters if your family member is under 65 and currently in or approaching the NDIS.

Community access. SIL is structured to promote participation in the community: going to activities, staying connected to family, accessing local services. Group home and residential care settings vary on this, though the best providers prioritise it.

Independence goals. SIL includes skill-building as a core component. Residential care more often focuses on maintaining current function rather than working toward greater independence over time.

Housing flexibility. With SIL, your family member can potentially live in an SDA home in a suburb close to your family. Residential care placements are less predictable in terms of location.

Who Is SIL Best Suited To?

SIL tends to suit your family member well if they have high support needs but want genuine choice over how and where they live. Location matters here. A SIL arrangement in the right suburb means family visits are practical, not an event that requires planning a trip across the city.

SIL is particularly worth pursuing if:

• Your family member is an NDIS participant under 65 who is currently in, or approaching, a residential aged care placement
• Your family member has goals around building independence over time, not just maintaining current function
• Your family member wants to choose their own support provider rather than accepting whoever operates the facility
• Staying connected to family and community is a clear priority

One honest admission: accessing SIL requires active engagement with NDIS planning, and it's not always the simpler path in the short term. It involves evidence, assessment, and a funded NDIS plan that includes SIL. A good support coordinator is valuable here.

Read more about how to access SIL funding in your NDIS plan for the practical next steps.

Who Might Residential Care or Group Home Living Still Suit?

This section matters. PDH has no interest in pretending SIL is the right answer for everyone.

Group home settings can genuinely suit participants who need consistent 24/7 on-site support in a structured, familiar environment. For some people, particularly those with complex behavioural support needs, a well-run group home with stable staffing may provide the consistency that works best.

Residential aged care may apply for participants who are over 65 and transitioning from the NDIS. That's a different process with its own considerations, which we've covered in detail in our post on transitioning from NDIS to aged care at 65.

Residential care can also be a short-term bridge. Sometimes SDA or SIL takes time to arrange, and a group home provides safe, supported accommodation in the interim. That arrangement doesn't have to be permanent. Families should know that moving from a group home to a SIL arrangement is possible, and people do make that transition.

The decision is rarely final. What matters is that it's made with clear information.

[IMAGE SUGGESTION: A calm living area in a purpose-built accessible home, showing comfortable and dignified design. Alt text: "Purpose-built SDA home interior showing the accessible design features available to NDIS participants choosing SIL housing arrangements."]

Questions to Ask When Deciding

These aren't a checklist to complete alone. Think of them as a conversation to have together, with your family member and your support coordinator.

1. Does your family member want more choice and control over who supports them and where they live?
2. Is being close to family and your existing community a clear priority when choosing where to live?
3. Does your family member need support focused on building skills over time, or mainly maintaining current function?
4. Is your family member under 65 and currently in or approaching residential aged care?
5. Has your family member had an occupational therapy functional assessment to establish their support needs?
6. Does your family member have an NDIS plan, or are they still accessing state-based services?
7. What are your family member's goals for independence over the next three to five years?

A support coordinator or NDIS planner is the right person to help you apply these questions to your specific situation. These questions are a starting point for that conversation, not a substitute for it.

Conclusion

For most NDIS participants under 65, SIL offers more choice, more community connection, and a clearer pathway toward independence than residential care. But "most" is not "all," and every family's situation is different.

The decision is genuinely difficult sometimes. We know that. What we can say is that asking these questions, at this stage, is the right thing to do.

At Paramount Disability Homes, we provide the SDA housing side of this equation: purpose-built homes across Melbourne, including in suburbs like Preston and Reservoir, that give your family member a real home close to the people who matter. We don't provide SIL services, but we work alongside families every day who are navigating exactly this decision, and we're happy to talk through the housing side of it.

Got questions? Call us on (03) 9999 7418 or email admin@paramounthomes.com.au. We're here to help, no pressure.