Understanding the NDIS — made simple.

If you’ve just been told you might be eligible for the NDIS — or you’re trying to help a family member figure it out — the whole thing can feel like a wall of acronyms. The good news is, the basics are actually pretty simple. Here’s the version we wish more people got told first.

So what is the NDIS, really?

The NDIS — short for National Disability Insurance Scheme — is Australia’s funding system for people living with permanent disability. It’s not a benefit or a pension. It’s an insurance-style scheme, designed to fund the supports a person needs to live a good life and work toward their goals.

It’s funded by the Australian Government and administered by the National Disability Insurance Agency (NDIA). It works alongside (not instead of) other systems like Medicare, mental health services and the public hospital system.

Who can access it?

To get NDIS funding, a person generally needs to be under 65 when they apply, an Australian citizen or permanent resident, and living with a permanent disability that substantially affects their daily life. Importantly, that disability can be physical, intellectual, sensory, cognitive or psychosocial — meaning mental-health-related.

What does a plan look like?

Every NDIS participant gets an individual plan. The funding in that plan is split into three categories:

• Core supports — the day-to-day stuff (personal care, support workers, transport, consumables).
• Capacity Building — supports that build your skills and independence (therapy, support coordination, employment supports).
• Capital — bigger one-off items (assistive technology, home modifications).

How do you actually use it?

Once your plan is approved, you choose providers to deliver the supports inside it. You can have a plan manager handle the invoicing, manage it yourself, or have it managed by the NDIA. A Support Coordinator can help you understand the plan and find providers who are a good fit — that’s often where we come in.

How is this different from Medicare?

Medicare funds clinical health treatment — GPs, hospital, psychiatrists, psychologists. The NDIS funds the disability supports that help you live your life — like having a worker help you cook, get to appointments, or build skills around the house. The two are designed to work together, not replace each other.

Bottom line: the NDIS is there to fund the supports that help you live a good, ordinary life — your way.

Eligibility is the bit that trips people up. The official wording is dense, so here’s the simple version — followed by what to do if you might not get in straight away.

The basic boxes you need to tick

• You’re under 65 when you apply.
• You’re an Australian citizen, permanent visa holder or hold a Protected Special Category Visa.
• You live with a permanent disability that substantially affects how you do everyday things.

What ‘permanent and significant’ actually means

‘Permanent’ doesn’t mean it has to be lifelong with no chance of change — it means it’s likely to be lifelong. ‘Significant’ means the disability has a substantial impact on your ability to do everyday activities — like communication, self-care, mobility, learning or social interaction — without help from another person, equipment or assistive technology.

Psychosocial disability eligibility

If you live with a serious mental health condition that substantially affects your day-to-day life, you may be eligible under what’s called psychosocial disability. The NDIS doesn’t look at the diagnosis alone — it looks at the functional impact. Two people with the same diagnosis can have very different NDIS outcomes depending on how much that condition affects their life.

What evidence do you need?

Strong evidence usually comes from treating clinicians — your GP, psychiatrist, psychologist, occupational therapist or recovery worker. They can complete an Evidence of Disability form that describes your functional impact in detail. This part is critical — vague evidence often gets vague decisions.

What if you’re not eligible?

If you don’t meet the criteria right now, you’re not out of options. State-funded mental health services, primary health networks, community organisations and Medicare-funded supports can all play a role. And you can re-apply if your situation changes.

If you’re unsure, we can chat through your situation and point you in the right direction — even if it’s not toward us.

‘Psychosocial disability’ is a term that doesn’t come up in many people’s vocabulary — until they need it. So let’s break it down properly.

The definition

Psychosocial disability refers to the impact a mental health condition can have on a person’s ability to do everyday activities, participate in their community, manage relationships, hold down work or study, and look after themselves. The disability is not the diagnosis — it’s the way the condition affects daily life.

Examples of conditions that can lead to psychosocial disability

• Schizophrenia and schizoaffective disorder
• Bipolar disorder
• Borderline personality disorder (BPD)
• Post-traumatic stress disorder (PTSD) and complex PTSD
• Severe and enduring depression or anxiety disorders

How is this different from a physical disability under the NDIS?

From the NDIS’s perspective, the criteria are the same — permanent, significant impact on daily life — but the way it shows up looks different. Physical disability tends to have visible, consistent functional impacts. Psychosocial disability often fluctuates: someone might be doing well for weeks then struggle to get out of bed for a fortnight. The NDIS recognises this episodic nature.

Functional impact is the real test

This is the critical bit: the NDIS doesn’t care about your diagnosis as much as it cares about how it affects you. Two people with the same condition can have very different access outcomes. A strong application explains, in concrete terms, what daily activities are affected and how often.

Where The Project Possible fits in

Psychosocial disability is the area we live and breathe. Our team is built around supporting people with complex mental health histories — including those with co-occurring substance use, forensic involvement, and previous unsuccessful experiences with mainstream services. We use a behavioural-science approach with a recovery-oriented lens, and we don’t walk away when things get hard.

If your story is complicated, that’s okay. It’s usually exactly the kind of story we’re built for.

Supported Independent Living, or SIL, is one of the most misunderstood parts of the NDIS. People often think it’s a type of housing — it’s actually a type of support that happens inside a home.

The short version

SIL is funding for the support workers who help you with daily life inside your home — things like cooking, personal care, medication, getting up and going to bed, and keeping things on track day to day. It’s for people who need a high level of support — often 24/7 — to live in a stable home environment.

How is SIL funded?

SIL is funded separately from the rest of your plan. It goes through a process called SIL quoting, where the chosen provider works with the NDIA to determine the right level of support based on a person’s needs. It can take time to set up, which is why getting the right provider involved early matters.

Shared vs individual SIL

• Shared SIL: living with one or more housemates and sharing the cost of support workers who are on shift across all residents.
• Individual SIL: living solo with your own dedicated support workers — usually for people who can’t safely or comfortably live with others.

How do you get SIL in your plan?

You’ll need strong evidence of why you need that level of support and what you can’t safely do without it. Often this involves your treating team, your support coordinator, and the prospective SIL provider working together to build the case at a plan review or new plan meeting.

What to look for in a SIL provider

• Real expertise in your specific needs — especially if you have complex psychosocial or behavioural needs.
• Restrictive practices approval if it’s relevant.
• Stable, well-trained staff teams (low turnover).
• A culture that feels like a home, not a facility.
• Willingness to support you through the SIL quoting process — not just hand you over once you’re in.

SIL vs ILO

If SIL feels like more support than you need, an Individualised Living Option (ILO) might suit better. ILO is a more flexible, person-led approach to where and how you live — we cover that one in its own article.

If you’re weighing up SIL, get to know a few providers. Visit. Ask hard questions. Trust your gut.

If SIL is the structured option, ILO is the flexible one. It’s designed for people who want more say in where they live, who they live with, and what their support looks like.

What does ILO actually mean?

ILO stands for Individualised Living Options. It’s a funding category in the NDIS that supports people to design their own home life — outside of a standard SIL or group home model. The philosophy is simple: you should get to live the way you want, with the help you need to make that work.

The four ILO options

• Living with a host: living in someone else’s home (a host or co-resident) who provides some informal support and companionship.
• Co-residency: living with a paid co-resident (often a peer or support worker) who shares the home with you.
• Living alone with drop-in support: having your own place with workers visiting at agreed times during the day or week.
• Living together with shared support: a small number of people living together, sharing some supports — but with much more flexibility than traditional SIL.

Who is ILO for?

ILO suits people who don’t need 24/7 support but still need significant help to live well in their own home. It’s also great for people who want more privacy, independence and control over who they share space with.

How does ILO funding work?

ILO funding is built in two stages: first, an Exploration & Design phase (where you work with a provider to design what your living arrangement could look like), and then the ongoing funding to deliver it. It’s more bespoke than SIL, but worth the work.

Why ILO might suit you better than SIL

If you crave flexibility, hate the idea of living with strangers, or want your support arrangement to look more like ‘a friend popping in’ than ‘shift change’, ILO is worth exploring. It takes more design work upfront — but the result is something built around you, not around the building.

ILO isn’t for everyone — and that’s okay. The right model is whichever one helps you live the life you want.

An NDIS plan is only as good as the way it’s used. Here’s how to actually get value out of yours — without burning out trying to understand every line item.

Understand your three budget categories

• Core: flexible day-to-day supports.
• Capacity Building: skill-building and capacity supports — usually less flexible across categories.
• Capital: one-off larger items like assistive technology and home mods.

Know how your funding is managed

There are three options: NDIA-managed (the agency handles invoices and you can only use registered providers), plan-managed (a plan manager handles invoices and you can use both registered and unregistered providers), and self-managed (you handle invoices yourself for maximum flexibility). Most participants benefit from plan management — it gives flexibility without the admin load.

Don’t leave funding on the table

Funding doesn’t roll over indefinitely. Most plans expire and unspent funds are returned to the agency. Use what’s in your plan — strategically — to build skills, get out into community, and try the supports you need.

Work your Support Coordinator

If you have Support Coordination in your plan, use it. A good coordinator will help you understand the plan, find providers, troubleshoot when things go sideways, and prepare you for plan reviews. They’re your translator and your advocate.

When to ask for a plan review

If your situation changes — a new diagnosis, a new living arrangement, a hospital admission, a relationship breakdown, anything significant — you can request an unscheduled plan review. Don’t wait for the year to be up.

‘Reasonable and necessary’ — what it means

Every funded support has to be ‘reasonable and necessary’ — meaning it’s linked to your disability, helps you pursue your goals, represents value for money, and is something the NDIS is responsible to fund (rather than another system, like Medicare). Frame your requests with this lens and your chances improve dramatically.

Your plan is a tool. Used well, it can change everything. Used passively, it does very little.

If your disability is mental-health related, you might be wondering what the NDIS will actually pay for. The short answer: more than people realise — but with clear limits.

What the NDIS can fund

• Psychosocial Recovery Coaching — a coach who works with you on your recovery goals.
• Supported Independent Living and ILO — accommodation supports.
• Daily living support — help with cooking, personal care, routines and structure.
• Community access — getting out into your community, social and recreational supports.
• Positive behaviour support — when behaviour is part of the picture.
• Capacity-building supports like skill development, employment supports and therapy.

What the NDIS does NOT fund

Clinical mental health treatment — psychiatrists, hospital admissions, psychology under Medicare — sits outside the NDIS. So do prescriptions, GP appointments and most acute mental health services. The NDIS is the ‘living-your-life’ part. Medicare and the public mental health system handle the clinical part.

Psychosocial Recovery Coaching, explained

Recovery Coaching is a relatively new NDIS support type designed specifically for people with psychosocial disability. A Recovery Coach works with you (and the people in your life) to design and pursue a recovery plan, navigate services, and stay on track. It’s deeper and more relational than standard support coordination.

Working across systems

The best outcomes usually come from joining the dots: NDIS supports for daily life and recovery, Medicare for clinical care, community mental health teams for crisis support, and your support people in the wings. A good Support Coordinator or Recovery Coach helps make all of that work together.

If you’re feeling stuck, you don’t need to know which system is which — that’s our job. Reach out and we’ll help you map it out.

If you’ve been told ‘we don’t have capacity right now,’ ‘you’re not the right fit,’ or worse, ‘we can’t support someone with your history,’ you’re not alone. It happens often — and it leaves people in some really hard positions.

Why providers turn people away

Honestly? Because complex situations are hard. Someone with co-occurring substance use, a forensic background, a history of behaviours of concern, or unstable mental health needs more than the average shift. Many providers aren’t set up — or willing — to meet that need. Risk-averse organisations would rather decline than try.

The impact

Being turned away again and again does real damage. It reinforces a story that you’re ‘too much,’ pushes people back into hospital or homelessness, and sometimes into the justice system. The system fails the people who need it most — until it doesn’t have to.

What a specialist provider looks like

• A team trained in psychosocial recovery, behaviour support and trauma-informed care.
• Restrictive practices approval where needed.
• Strong clinical oversight and supervision built in.
• Stable staffing with low turnover.
• A culture that holds the person at the centre — not the rule book.

Why not giving up matters

Every person we work with has a moment in their story where they nearly stopped trying. We’ve seen what happens when someone gets the right team around them — even after years of being knocked back. The change is real, and it can come faster than you’d expect.

How The Project Possible supports complex participants

We were built for this. We accept referrals others won’t, we put together teams who can hold the work, and we partner with treating clinicians, support coordinators and families to make it stick. We use behavioural science to understand what’s driving things and design supports that work — practically, in real life.

How to make a referral

Send us a referral and we’ll respond fast — usually within a business day. We’ll meet, work out what’s needed, and get supports in place inside 24–48 hours where we can.

You haven’t run out of options. You’ve just run out of providers who are right for you. Let’s change that.