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NDIS Individualised Living Options (ILO) in Sydney: Eligibility, Funding & How to Apply (2026 Guide)
What if you could design your own living arrangement — choosing where you live, who you live with, and how you’re supported — instead of fitting into a pre-existing group home or service model?
That’s exactly what Individualised Living Options (ILO) offers under the NDIS. It’s a flexible, participant-driven alternative to traditional Supported Independent Living (SIL) that puts you in control of your housing and support arrangements.
Unlike group homes where support is rostered and housemates are assigned, NDIS individualised living options in Sydney let you live with a host family, share your own home with a housemate of your choice, or create a completely custom arrangement that blends paid supports with help from family, friends, and community.
ILO is still relatively new, and many NDIS participants and families don’t know it exists. In Sydney, only a handful of providers offer ILO services — which means there’s a real opportunity if this model suits your needs.
In this guide, we explain everything you need to know about Individualised Living Options in Sydney: what ILO is, who’s eligible, how funding works (up to $230,000 per year), the two types of living arrangements, how to apply step by step, and how ILO compares to SIL and SDA.
What Are Individualised Living Options (ILO)?
Individualised Living Options is an NDIS support that helps you live in your chosen home environment in a way that suits you. It’s designed to give you a sense of home and belonging while building your independence over time.
Here’s the key distinction: ILO is not the home itself. It doesn’t pay for a house, rent, or mortgage. Instead, ILO funds the support arrangement around your living situation — the people who live with you, the supplementary supports you receive, and the provider who oversees the whole arrangement.
Think of it this way:
| NDIS Support | What It Funds | How It Works |
|---|---|---|
| ILO | The living arrangement — your host/housemate, supplementary supports, and provider oversight | You design a custom arrangement with a host or housemate, blending paid and informal supports |
| SIL | The support workers — rostered staff who help with daily living in a shared home | You live in a group home with 24/7 rostered support workers |
| SDA | The house itself — a purpose-built or modified dwelling with specialist design features | You live in a certified accessible home funded by the NDIS |
You might have ILO alongside other NDIS supports, but ILO is distinct from both SIL and SDA. You can read our guides on each to understand the differences in detail.
What ILO Is NOT
It’s important to be clear about what ILO doesn’t cover, as this is a common source of confusion:
- Not housing funding — ILO doesn’t pay for rent, mortgage, or home modifications (that’s SDA or home modification funding)
- Not everyday living costs — food, electricity, internet, and other household bills remain your responsibility
- Not community access — activities outside the home like work, sport, or social outings are funded through community participation funding
- Not a set program — ILO is not a pre-packaged service. It’s designed around your specific preferences and needs
- Not payments for family — informal supports from family and friends cannot be paid through ILO or any NDIS funding
Two Types of ILO Living Arrangements
Every ILO arrangement is unique, but they generally fall into two categories:
1. Host Arrangement
You live full-time in the home of a host — someone who is not related to you. The host provides companionship and day-to-day support, such as helping with personal care, cooking, household tasks, and emotional support.
Think of it as living with a supportive family, but with formal agreements and provider oversight in place. The host receives an agreed reimbursement payment (not an hourly wage) plus a board and lodging contribution to cover household costs.
Example — Tori, 25: Tori has an intellectual disability and lives with her hosts Carol and Ben. Carol helps Tori with her daily routine and medications. A support worker visits 10 hours per week for gym, grocery shopping, and seeing friends. An alternative host, Kylie, provides relief one weekend per month. The ILO provider oversees the arrangement with regular meetings and home visits.
2. Housemate Arrangement
You live in your own home (or a shared rental) with one or more housemates who are not related to you. Your housemate provides some level of support — perhaps companionship, prompting with daily tasks, or practical help around the house — often in exchange for reduced rent or a support payment.
Example — Jodie, 34: Jodie has high physical support needs from a degenerative condition and a moderate intellectual disability. She previously lived in a group home but wanted more privacy and choice. Now, her housemate Emily lives full-time in Jodie’s own unit, providing companionship and some practical support. A secondary housemate, Cheryl, stays two days per fortnight so Emily can have breaks. Jodie remains in control of choosing who she lives with. Formal support workers also visit for specific personal care tasks.
Which Arrangement Is Right for You?
| Factor | Host Arrangement | Housemate Arrangement |
|---|---|---|
| Where you live | In the host’s home | In your own home or shared rental |
| Level of support | Can be higher — host is always present | More variable — housemate may have their own schedule |
| Independence | Family-like environment with built-in support | Greater independence — you control your home |
| Best for | People who prefer a home environment with consistent, live-in support | People who want to live in their own space with some support alongside |
| Lease/ownership | Host holds the lease or owns the home | You hold the lease or co-sign with your housemate |
The Three Components of ILO Support
Every ILO arrangement is made up of three building blocks. Understanding these helps you design an arrangement that truly works for your life:
1. Primary Supports
Delivered by the person you live with — your host or housemate. This is the core of your ILO. Primary supports might include:
- Personal care assistance (prompting or physical help)
- Cooking and meal preparation
- Cleaning and household tasks
- Emotional support and companionship
- Help getting ready for work or activities
- Ensuring you’re safe at home
2. Supplementary Supports
Extra supports that sit alongside your primary support. These are flexible and can be paid or unpaid. Supplementary supports are especially important for providing backup when your host or housemate is unavailable (work, holidays, appointments). Examples include:
- Paid “drop-in” support workers for specific tasks
- On-call arrangements for emergencies
- A secondary host who provides relief (e.g., one weekend per month)
- Structured support from family or friends at set times
- Mentor or volunteer support
- Neighbours who provide agreed, formalised assistance
- Respite care when needed
3. Monitoring and Adjustment
Your ILO provider is responsible for overseeing the entire arrangement. This includes regular check-ins with everyone involved to ensure things are working well. The monitoring plan tracks:
- Your independence and skill development
- Whether you’re happy with the arrangement
- Whether you feel safe
- Any issues with the people providing support
- Changes in your needs or goals
One of the biggest advantages of ILO is that adjustments can happen quickly without needing a full NDIS plan reassessment. If something isn’t working, the mix of supports can be changed by you and your provider.
Who Is Eligible for ILO?
ILO is designed for NDIS participants who want more flexibility and control over their living arrangements than traditional group home settings provide. According to the official NDIS guidelines, ILO might be right for you if:
- You are 18 years or older (or 17 and starting to plan your future living arrangement)
- You need support at home — whether formal or informal — for at least 6 hours each day
- You are ready to explore your home and living options
- You are willing to invest time and effort into creating your future living arrangement
ILO May NOT Be Right for You If:
- You are under 18 (unless you’re 17 and planning ahead)
- You need less than 6 hours of support per day and don’t need help with problem-solving at other times
- You need 24-hour rostered support from one or more support workers — this is better suited to SIL
- You need frequent support overnight
- Restrictive practice is part of your behaviour support plan
The key principle: ILO works best for people who need substantial daily support but can have that support delivered through a blend of a host/housemate, supplementary supports, and informal networks — rather than needing 24/7 rostered support workers.
How ILO Funding Works
ILO funding is delivered in two stages, each with clear purposes and funding bands. Understanding this structure helps you plan your timeline and set realistic expectations.
Stage 1: Exploration and Design
This is the planning phase. You work with an ILO provider to explore where you want to live, who with, and what support you’ll need. Stage 1 funding covers up to 100 hours of support, normally capped at one of three levels:
| Hours | When This Applies |
|---|---|
| Up to 30 hours | You already know what help you need, you’re staying in a similar area, and decision-making is straightforward |
| Up to 50 hours | You’re not sure what help you’ll need, you want to move to a different suburb or area, or there are several people involved in decisions |
| Up to 100 hours | You need to work out support across many areas of your life, you’re making a major location change, or there are many people with different views involved in decision-making |
What happens during Stage 1:
- Explore where and how you want to live
- Understand your strengths and what you can do to build skills
- Choose who you live with and how you’re supported
- Understand how paid supports, family, friends, and community all play a role
- Assess and manage any risks
- Complete a Service Proposal Form — a detailed plan of your ILO arrangement
When Stage 1 funding is added to your plan, the NDIA also provides an estimate of Stage 2 funding so you and your provider can design the arrangement knowing what’s available.
Stage 2: Ongoing ILO Supports
Once your Service Proposal is approved, Stage 2 funding is added to your NDIS plan. This is the ongoing funding that supports your living arrangement year after year. There are three funding bands:
| Support Level | Annual Funding (Up To) | What This Looks Like |
|---|---|---|
| Level 1 | $105,000/year | Host or housemate provides companionship and some casual support (prompting with personal care, household tasks, managing emotions). Limited supplementary supports like drop-ins or on-call. Minimal monitoring. |
| Level 2 | $150,000/year | Host or housemate provides more regular direct support (physical assistance with personal care, supervision with tasks, behaviour support). More supplementary supports including paid drop-ins and structured family involvement. Regular monitoring. |
| Level 3 | $230,000/year | Host or housemate provides sustained, intensive support including significant physical assistance, direct supervision, and disability-related health supports. Extensive supplementary supports including alternate hosts for relief. Significant monitoring with frequent adjustments. |
Important: These levels are a guide. Your actual funding is determined based on your individual circumstances and assessed needs, not automatically assigned to a band.
ILO funding can be self-managed, Agency-managed, or plan-managed through a registered plan manager.
For more information on ILO funding structure, visit the NDIS ILO funding page.
ILO vs SIL: Which Is Right for You?
This is the question most participants and families ask. Both ILO and SIL provide home-based support, but they work in fundamentally different ways. Here’s a detailed comparison to help you decide:
| Factor | ILO | SIL |
|---|---|---|
| Support model | Host or housemate + flexible supplementary supports | 24/7 rostered support workers in shifts |
| Living setting | Host’s home, your own home, or shared rental | Group home (usually 2–5 residents sharing staff) |
| Choice of housemates | You choose who you live with | Housemates are typically determined by the provider |
| Flexibility | Highly flexible — supports can be adjusted quickly without plan reassessment | More structured — changes often require plan reviews |
| Overnight support | Host/housemate is present but not rostered overnight staff | Active or sleepover staff available overnight |
| Annual funding range | $105,000 – $230,000/year | $80,000 – $320,000+/year |
| Best suited for | Participants who want choice, flexibility, and a home-like environment with blended supports | Participants who need 24/7 rostered support, including frequent overnight assistance |
| Informal supports | Central to the model — family, friends, and community play a key role | Not built into the model — support comes from paid staff |
Can you switch from SIL to ILO? Yes. If you’re currently in a group home but feel the arrangement isn’t right for you — perhaps you want more privacy, more choice over who you live with, or a less institutional environment — you can explore ILO as an alternative. Talk to your Local Area Coordinator (LAC) or support coordinator about adding ILO Stage 1 (Exploration and Design) funding to your plan.
For a full breakdown of SIL including costs, eligibility, and daily life in a group home, read our complete guide to NDIS group homes and SIL in Sydney. You can also explore what your first year in SIL looks like.
How to Apply for ILO: Step-by-Step
Applying for ILO involves two distinct phases — getting Stage 1 funded, then completing Stage 1 to unlock Stage 2. Here’s the full process:
Step 1: Add a Home and Living Goal to Your NDIS Plan
If you don’t already have a home and living goal in your plan, request a plan review to add one. Your goal should reflect what you want from your living arrangement. For example:
- “I want to explore living with a host family in a home environment”
- “I want to move out of my group home and find a more personalised living arrangement”
- “I want to live in my own home with a housemate who can support me day to day”
Step 2: Complete the Home and Living Supporting Evidence Form
Submit the Home and Living Supporting Evidence Form to the NDIA. On this form, tick that you want to find out more about whether ILO might be right for you. Include a description of how you want to live, how you want to be supported, and what support you currently need.
Your support coordinator, LAC, or an experienced ILO provider can help you complete this form. You may also need to provide supporting evidence such as:
- Occupational Therapist (OT) or allied health assessments
- Medical reports documenting your disability and support needs
- Carer or family statements
- Your current support arrangements and why they need to change
Step 3: NDIA Reviews Your Request
The NDIA considers whether ILO meets the NDIS funding criteria for your situation. They assess whether the support:
- Is related to your disability support needs
- Helps you pursue goals in your plan
- Is likely to be effective and beneficial
- Represents value for money compared to alternatives
- Is safe and legal
If approved, Stage 1 funding (Exploration and Design) is added to your plan, along with an estimate of Stage 2 funding.
Step 4: Choose an ILO Provider and Start Exploring
With Stage 1 funding in your plan, choose an ILO provider to work with. A good provider will:
- Listen to you and understand your needs
- Help you think about options that genuinely suit you (not suggest a pre-existing service)
- Be flexible and willing to try something new
- Help you find the right host or housemate
- Work with you to assess and manage risks
At OneJesus Care, we offer ILO services across Sydney. As a 100% non-profit, our focus is entirely on finding the right arrangement for you — not filling beds in existing properties.
Step 5: Complete the Service Proposal
At the end of Stage 1, you and your provider complete a Service Proposal Form. This is a detailed plan covering:
- Your preferred living arrangement (host or housemate)
- Who will provide primary, supplementary, and informal supports
- How much paid support you need and when
- A monitoring plan to ensure the arrangement works
- How issues will be raised and resolved
The NDIA strongly encourages that the provider who will deliver Stage 2 is involved in preparing the Service Proposal, even if they weren’t your Stage 1 provider.
Step 6: Submit the Service Proposal and Start Your ILO
Submit the completed Service Proposal to the NDIA (via email to enquiries@ndis.gov.au, by mail, or in person at your local NDIS office). The NDIA assesses it against the funding criteria and, if satisfied, adds Stage 2 ILO funding to your plan.
Then the real work begins — finding your host or housemate, setting up agreements, transitioning into your new arrangement, and beginning your new chapter of independent living.
If you disagree with any decision: You can request an internal review within 3 months of receiving your plan. If that doesn’t resolve it, you can escalate to the Administrative Appeals Tribunal (AAT).
Real-Life ILO Examples from Sydney Participants
ILO can look very different depending on your needs. Here are some examples based on NDIS participant scenarios to show the range of what’s possible:
Connie, 36 — Housemate Arrangement with a Microboard
Connie has an intellectual and physical disability and lives in a private rental with her housemate Rebecca. Rebecca provides about 10 hours per week of practical assistance — helping with morning routines, medications, cooking, and house maintenance — in exchange for reduced rent and shared utilities. Connie also has a team of formal support workers for daily personal care, and her family provides structured support at set times. She has a Microboard (a small formal group of trusted people) who help her with bigger life decisions. An ILO provider oversees the entire arrangement, coordinating payments, training, and monitoring.
Lyle, 22 — High-Support Host Arrangement
Lyle has very high support needs from multiple disabilities and is non-verbal. He lives with hosts Alice and Joe, who provide constant support including personal care, medical management, nutrition, and overnight turning. Both hosts are specifically trained. A support worker visits 15 hours per week for appointments and activities. Secondary hosts Gavin and Clare provide relief one night per week. A public trustee oversees guardianship and finances, and the ILO provider conducts both scheduled and unscheduled monitoring visits.
Michael, late 20s — Designed-from-Scratch Arrangement
Michael has autism, limited verbal communication, anxiety, and aggressive behaviour. His support coordinator led the Stage 1 process, breaking down every hour of his day to understand his support structure. Together, they chose living with a housemate plus visiting support workers. The provider handled finding a compatible housemate, lease signing, rent arrangements, and designed a flexible transition period to manage Michael’s anxiety about the change.
ILO vs SIL vs SDA: Complete Comparison
Many participants and families ask how all three housing-related NDIS supports compare. Here’s the full picture:
| Feature | ILO | SIL | SDA |
|---|---|---|---|
| What it funds | The living arrangement and support model | Daily support workers | The physical dwelling |
| NDIS budget category | Core Supports | Core Supports | Capital Supports |
| Who provides support | Host/housemate + supplementary supports + informal networks | Rostered support workers (24/7) | N/A (SDA is the building, not support) |
| Living setting | Host’s home or your own home | Group home (typically 2–5 residents) | Purpose-built accessible dwelling |
| Choice and control | Maximum — you design the arrangement | Limited — provider-determined setting and housemates | You choose from available SDA properties |
| Annual funding | $105k – $230k/year | $80k – $320k+/year | $35k – $94k/year (paid to SDA provider) |
| Eligibility | 18+, 6+ hours daily support, willing to explore | Substantial daily support needs including overnight | Extreme functional impairment or very high support needs (only ~6% of participants) |
| Can be combined? | Yes — can combine with SDA or other supports | Yes — often combined with SDA | Yes — usually combined with SIL or ILO |
For more information on how different NDIS accommodation options work together, read our accommodation guide.
Tips for a Successful ILO Application
1. Start Early — ILO Takes Time to Set Up
The exploration and design phase alone can take months. In some cases, finding the right host or housemate, establishing agreements, and transitioning into the new arrangement has taken up to two years. Start the conversation with your LAC or support coordinator as early as possible.
2. Choose an Experienced ILO Provider
ILO is still relatively new, and not all providers have experience delivering it. Look for a provider who has successfully set up ILO arrangements before, understands the Service Proposal process, and is genuinely flexible rather than trying to fit you into an existing service.
3. Think Beyond Traditional Models
ILO is your opportunity to design something that truly fits your life. Don’t limit yourself to what you’ve seen before. Consider:
- Could a university student be a great housemate — offering companionship and support in exchange for reduced rent?
- Could a neighbour provide structured backup support?
- Could a Microboard of trusted people help with bigger decisions?
- Could a secondary host provide relief on a regular schedule?
4. Get Your Evidence Right
The NDIA needs to see that ILO is “reasonable and necessary” for your situation. Strong evidence includes an OT assessment, documentation of why your current arrangement isn’t working, and a clear explanation of how ILO will improve your outcomes compared to alternatives like SIL.
5. Plan Your Financial Arrangements Carefully
Both you and your host/housemate should seek independent financial advice before agreeing to arrangements. Payments received through ILO may be assessable for tax purposes. Make sure all financial agreements are clearly documented in writing.
6. Know Your Rights
If your ILO request is denied, you can request an internal review within 3 months. If that fails, you can escalate to the Administrative Appeals Tribunal (AAT). Many successful ILO applications have required persistence — a denial doesn’t mean the end.
How OneJesus Care Supports ILO in Sydney
At OneJesus Care, we believe everyone deserves a living arrangement that reflects who they are — not a one-size-fits-all solution. As a 100% non-profit NDIS provider in Sydney, we offer Individualised Living Options alongside our full range of NDIS services including SIL, SDA, community participation, home care, respite, and transport.
What makes us different:
- Person-centred approach — we design arrangements around you, not around our existing properties or programs
- 100% non-profit — every dollar goes to your care, not shareholders
- SDA High Physical Need Support certified — for participants who need ILO combined with specialist accommodation
- 24/7 support availability — including supplementary supports and backup arrangements
- Sydney-based — we understand the local housing market, community services, and support networks across Greater Sydney
Whether you’re exploring ILO for the first time or ready to transition from a group home to something more personalised, we’re here to guide you through every step.
Ready to explore ILO? Call us on 1800 04 CARE (1800 04 2273) for a free, no-obligation consultation, or contact us online.
Frequently Asked Questions About ILO
What is the difference between ILO and SIL?
SIL provides 24/7 rostered support workers in a group home setting. ILO provides a custom arrangement where you live with a host or housemate of your choice, blending paid supports with informal support from family, friends, and community. ILO offers more flexibility and choice; SIL offers more intensive, round-the-clock staffing. Read our full SIL guide for a detailed comparison.
How much does ILO cost?
ILO is funded through your NDIS plan, not out of pocket. Stage 1 (Exploration and Design) provides up to 100 hours of planning support. Stage 2 (ongoing supports) provides up to $105,000, $150,000, or $230,000 per year depending on your support needs. You still pay your own everyday living costs (rent, food, utilities).
Can I live with a family member under ILO?
No. ILO arrangements require your host or housemate to be someone who is not related to you. However, your family can still provide structured informal supplementary supports at agreed times (for example, regular visits, help with specific tasks). Family members cannot be paid for these supports through the NDIS.
Can I have ILO and SDA at the same time?
Yes. ILO and SDA can be combined. For example, you could live in an SDA-certified property (funded by SDA) while receiving ILO-funded support from a host or housemate who lives with you. This combination is especially relevant for participants with high physical support needs who need both a specialist dwelling and a flexible support model.
How long does it take to set up an ILO arrangement?
There is no fixed timeframe. Stage 1 alone can take several months, and finding the right host or housemate, setting up agreements, and transitioning can take longer. Some arrangements have taken up to two years from start to finish. Start early and be prepared for the process to take time.
Can I switch from SIL (group home) to ILO?
Yes. If you’re currently receiving SIL in a group home but feel the arrangement isn’t right for you, talk to your LAC or support coordinator about exploring ILO. You can request ILO Stage 1 funding to be added to your plan through a plan review or change of circumstances.
What happens if my ILO arrangement isn’t working?
One of ILO’s biggest strengths is flexibility. If something isn’t working, changes to the mix of supports can be made quickly by you and your provider — without needing a full NDIS plan reassessment. Your monitoring plan should include clear processes for raising and resolving issues.
Do I need to find my own host or housemate?
No. Your ILO provider is responsible for helping you find a compatible host or housemate during the Stage 1 process. They handle matching, background checks, agreement drafting, and ongoing oversight.
Disclaimer
The information in this article is intended as a general guide only and should not be taken as legal, financial, or medical advice. NDIS eligibility, funding, and housing decisions are assessed individually by the NDIA. Policies, pricing, and guidelines may change — always refer to the official NDIS website for the most current information. We recommend speaking with a qualified support coordinator, Local Area Coordinator (LAC), or allied health professional before making decisions about your NDIS plan or housing arrangements.
Next Steps
If you or someone you care about is interested in exploring Individualised Living Options in Sydney, the first step is a conversation. Talk to your LAC, support coordinator, or contact an experienced ILO provider to discuss whether ILO could work for your situation.
At OneJesus Care, we offer free, no-obligation consultations to help you understand your options. Whether ILO, SIL, SDA, or another support is right for you, we’ll help you figure it out.
Call us on 1800 04 CARE (1800 04 2273) or contact us online to get started.
