One of the most confusing parts of navigating the NDIS is understanding what the scheme will and won't fund. Since the introduction of the NDIS Supports Transitional Rules 2024 (also called the "Getting the NDIS Back on Track" rules), there is now a formal "in list" and "out list" of what the NDIS can fund. This guide explains what those lists mean and how they affect common support types including smart home technology, home modifications, and SDA.
Why the In and Out Lists Exist
Before the Transitional Rules, the NDIS operated with a broad "reasonable and necessary" test that gave participants and the NDIA a lot of flexibility (and a lot of disagreement) about what could be funded. The 2024 rules introduced a clearer framework: certain supports are categorised as either "in" (can be funded) or "out" (cannot be funded), regardless of whether they might otherwise seem reasonable or necessary.
The rules were introduced as part of a broader effort to make NDIS spending more predictable and to reduce disputes. However, they have also created significant uncertainty for participants, particularly around items that sit at the boundary between disability support and everyday living.
What Is on the Out List?
The out list includes categories of support the NDIS will generally not fund. Common examples relevant to home and technology supports include:
Day-to-day living costs:
- Standard home security and maintenance costs
- Fencing, gates, and building repairs
- Standard household items, appliances, tools, and products
- Standard furniture and bedding
- Gardening and cleaning (in most cases)
General health and wellbeing items:
- Gym memberships and standard exercise equipment
- General nutrition and meal planning
- Standard over-the-counter medicines
Supports available from other systems:
- Services covered by Medicare or the health system
- Items that are the responsibility of state housing or education departments
The word "standard" appears throughout the out list and has been a major source of dispute. See below for how the courts have interpreted this.
What Is on the In List?
The in list includes categories that can be funded if they are reasonable and necessary for the participant. Relevant to home and smart home technology, these include:
Assistive Technology:
- Mobility aids (wheelchairs, walking frames, scooters)
- Communication devices and apps
- Smart home technology that addresses functional impairment (voice control, automated access, environmental controls)
- Personal care equipment
- Hearing aids and low-vision technology
- Ceiling hoists and transfer equipment
Home Modifications:
- Ramps and accessible entry
- Accessible bathroom construction (roll-in showers, grab rails, raised toilets)
- Doorway and corridor widening
- Automated doors and entry systems installed as home modifications
- Ceiling hoist installation
Specialist Disability Accommodation:
- Rent/housing payments for NDIS-registered SDA properties
- High Physical Support, Robust, Fully Accessible, and Improved Liveability properties
Core Supports:
- Support workers for daily living tasks
- Community participation
- Transport to activities
The "Standard Item" Problem: What Does Standard Actually Mean?
The most contested area in the in/out framework is the definition of a "standard item." Under the Transitional Rules:
A standard item means an item that is not modified or adapted to address the functional impairments of the participant.
In practice, this definition has been interpreted inconsistently. The NDIA often argued that if an item could be purchased from a mainstream retailer, it was "standard" and therefore excluded. This interpretation was challenged in the landmark 2025 case Hyde v NDIA.
The Guidance and Appeals Panel (GAP) of the Administrative Review Tribunal found this interpretation was too narrow. The Panel confirmed:
- An item is not "standard" just because it can be bought off the shelf
- The NDIA must consider the participant's specific impairments and whether the item is adapted to address them
- "Adapted" means fitted or suitable for the participant's particular purpose, not necessarily physically altered
This means smart home products from mainstream retailers can still be funded, as long as they are configured or selected to address a specific functional impairment. Read more in our guide on the Hyde ruling and what it means for NDIS participants.
What If Your Request Sits in a Grey Area?
Many support requests don't fall neatly into "in" or "out." If you're applying for something that might be considered borderline, the key factors are:
1. Strong OT evidence Your occupational therapist's report is your most important tool. It must clearly link the support to your specific disability-related functional impairment, not just a general preference or convenience. The OT should also address why alternatives are not appropriate.
2. Documentation of adaptation If you are applying for a product that could be considered a standard household item, document clearly how it has been adapted or selected specifically for your disability. This is especially important for technology products purchased from mainstream retailers.
3. The "reasonable and necessary" test still applies Even if a support is on the in list, it must still be reasonable and necessary. The NDIS will assess cost, whether the support is value for money, and whether there are less expensive alternatives.
4. Work with your support coordinator A good support coordinator knows how to frame requests to maximise the chance of approval. They can also help if a request is initially refused. Read our guide on what a support coordinator does for more detail.
Smart Home Technology and the In/Out Lists
Smart home technology sits in an interesting position. Many devices, such as voice assistants, smart bulbs, and video doorbells, are mainstream consumer products. Yet when they are used to address genuine functional impairments, they can qualify as NDIS-funded Assistive Technology.
The 2025 Hyde ruling confirmed that these items are not automatically "standard" just because they come from a mainstream shop. What matters is how they address the participant's disability.
Common examples:
| Technology | Typical NDIS Status | Notes | |---|---|---| | Voice assistant hub (Echo, Google Home) | AT, low to mid cost | Must be linked to functional impairment | | Smart bulbs and lighting | AT, low cost | Often under $1,500, no prior approval needed | | Video doorbell | AT, low to mid cost | Strong OT evidence recommended | | Smart lock | AT, mid cost | OT must document key management difficulty | | Automated gate system | AT, mid cost | Supported by Hyde ruling for vision impairment | | Wired automated blinds | Home Modification | Requires installation, funded differently | | Environmental control system | AT, high cost | Complex ECS requires OT assessment and trial |
For a full cost and process guide, see our NDIS Smart Home Technology guide.
SDA and the In/Out Lists
Specialist Disability Accommodation is a separate stream within NDIS Capital Supports and is not affected by the standard items debate. SDA funding covers the housing cost for participants approved for SDA, and it flows directly to the registered SDA provider (such as Innogreen) rather than going through the participant's general AT budget.
If you think you may qualify for SDA, read our SDA Eligibility guide for the criteria and application process.
Key Takeaways
- The NDIS in/out lists introduced in 2024 clarified what can and cannot be funded
- "Standard items" are excluded, but "standard" does not simply mean "available in a mainstream shop"
- Smart home technology from mainstream retailers can be funded when it is adapted to address a specific functional impairment
- Strong OT evidence is essential for any borderline request
- The 2025 Hyde ruling strengthens participant rights to access off-the-shelf technology through NDIS
If you have questions about what technology can be funded in your plan, contact our team. We work with participants and OTs across Perth to navigate NDIS funding and find the right solutions.