Shifting more people with disability into Individualised Living Arrangements (ILAs) could both improve quality of life and save the National Disability Insurance Scheme (NDIS) $260 million over five years, according to a new report by the Summer Foundation.

The report, Moving Out, Moving On: Beyond group homes for NDIS participants, argues that ILAs are not only more person-centred but also more cost-effective than the traditional group home model, particularly as the cost of Supported Independent Living (SIL) continues to surge.

SIL funding costs have increased by 28 per cent over the past five years, placing a growing strain on the NDIS. Group homes, which typically rely on a 1:3 support ratio, are one of the scheme's most expensive service models.

ILAs are tailored to the individual’s preferences—allowing participants to choose how and with whom they live, whether that’s with a host, a housemate, or a mentor.

“ILAs are typically more cost-effective than group homes,” said Jessica Walker, the Summer Foundation’s Head of Policy, Communication and Systems Change. “If just 500 more people chose ILAs each year, the NDIS could save $260 million over five years.”

Currently, only 520 NDIS participants live in ILAs across Australia, supported by providers using various models such as Host, Homeshare, Good Neighbour, Mentor and Co-Resident arrangements.

Such models are already widely used in countries like the UK and Canada but remain underutilised in Australia due to outdated pricing structures and a lack of government support.

People with intellectual disability, acquired brain injury, and autism are the most common users of ILAs, which are shown to promote greater independence, stronger social connections and improved personal outcomes.

The report highlights the need for the NDIA to introduce a secure pricing and regulatory framework, raise awareness among participants and families, and grow the pool of live-in supporters to make ILAs a mainstream alternative.

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Pete and his housemate Simon, who have lived together in Perth for almost ten years, offer a striking example of an ILA’s potential. With Simon’s rent paid through Pete’s NDIS plan, the two have developed a supportive and mutually respectful relationship that extends beyond their housing arrangement. Since moving in together, Pete has launched a business, gained better control over his finances, and built a healthier daily routine.

“We’re pretty well known in Osborne Park,” Simon said. “The coffee shop knows we’re housemates, and that makes Pete feel like he belongs.”

For Pete, the difference is deeply personal. “I like coming home to a home where someone else is there instead of it being by myself,” he said.

Walker said the re-election of the Albanese Government presents an opportunity to act decisively. She says “more than 40 recommendations from the Disability Royal Commission remain unaddressed—including the urgent need to phase out group homes”.

The report calls on the federal government to commit to expanding ILAs by introducing targeted tax and regulatory incentives, and for the NDIA to immediately index funding for ILAs to ensure they are viable for providers. Without action, Walker warned, outdated models will continue to dominate at the expense of both people with disability and the sustainability of the NDIS.

“ILAs are based on the simple idea that our lives are better when they’re shared,” Walker said. “It’s time for Australia to catch up with the rest of the world and make that idea a reality.”