You’ll hear the term “functional capacity” a lot in the NDIS.
It’s one of the most important concepts in your application, your plan review, and your funding decisions.
But what does it actually mean?
In simple terms, functional capacity is your ability to do everyday activities safely and independently.
The NDIS does not fund based on diagnosis alone. It funds based on how your disability impacts your day-to-day life.
That impact is your functional capacity.
In this resource we will explain in detail what Functional Capacity is and why it’s an important every-day term in the NDIS.
- Why Functional Capacity Matters in the NDIS
- The Areas of Functional Capacity the NDIS Looks At
- Functional Capacity When Applying for the NDIS
- Functional Capacity and Your NDIS Funding
- How Functional Capacity Is Measured
- How to Communicate Your Functional Capacity to the NDIS
- What If Your Functional Capacity Changes?
- How Plan Management Helps
- Ready to Feel More Confident About Your NDIS Plan?
Why Functional Capacity Matters in the NDIS
Functional capacity is central to:
- Applying for the NDIS
- Determining how much funding you receive
- Deciding what supports are “reasonable and necessary”
- Plan reassessments (reviews)
- Appeals and internal reviews
When the NDIA looks at your application or review, they are asking:
- What can this person do independently?
- What do they struggle with?
- Where are the safety risks?
- What support is required, how often, and why?
The clearer your functional evidence, the stronger your case for appropriate funding.
The Areas of Functional Capacity the NDIS Looks At
The NDIS considers how your disability affects key areas of daily life.
These commonly include:
Mobility
- Walking
- Transferring (bed to chair)
- Balance
- Using stairs
- Risk of falls
- Using mobility aids
Self-Care
- Showering
- Dressing
- Toileting
- Grooming
- Eating and drinking
Communication
- Speaking clearly
- Understanding others
- Using communication devices
- Expressing needs
Social Interaction
- Engaging with others
- Understanding social cues
- Managing behaviour
- Participating in community
Learning and Cognition
- Memory
- Concentration
- Planning and organising
- Decision-making
- Managing appointments or paperwork
Self-Management
- Managing money
- Taking medication
- Following routines
- Organising daily tasks
These areas align with how the NDIS determines supports across Core, Capacity Building and Capital funding categories.
Functional Capacity When Applying for the NDIS
When you apply, the NDIA wants evidence that your disability:
- Is permanent or likely to be permanent
- Significantly impacts your functional capacity
A diagnosis letter is not enough on its own.
For example:
Saying “I have Multiple Sclerosis” is not the same as saying:
“Due to MS-related fatigue and balance impairment, I require daily assistance with showering and am at high risk of falls without supervision.”
The second statement explains functional impact.
This is what the NDIA needs.
Functional Capacity and Your NDIS Funding
Your funding is based on the level of support required to compensate for reduced functional capacity.
If your evidence shows:
- You need daily personal care → Core funding may increase
- You have falls risk → Assistive Technology or Home Modifications may be funded
- You struggle with organisation and coordination → Support Coordination may be funded
- You require therapy to maintain skills → Capacity Building funding may be included
If your functional limitations are not clearly documented, funding may be lower than you need.
We often see plans where the diagnosis is well explained — but the daily impact isn’t.
That’s where funding gaps happen.
How Functional Capacity Is Measured
Functional capacity is usually measured through:
Functional Capacity Assessments (FCA)
An Occupational Therapist (OT) commonly completes these.
An FCA assesses:
- What you can do independently
- What you need assistance with
- How long tasks take you
- Fatigue levels
- Safety risks
- Environmental barriers
The report links your functional limitations directly to recommended supports.
Standardised Assessment Tools
Health professionals may use tools such as:
- WHODAS (World Health Organisation Disability Assessment Schedule)
- PEDI-CAT (for children)
- FIM (Functional Independence Measure)
- Mobility scales
- Cognitive screening tools
These provide objective measurements to support your case.
Real-World Evidence
Sometimes the most powerful evidence includes:
- Incident reports (falls, hospitalisations)
- Carer statements
- Support worker reports
- Therapy progress notes
The NDIS looks at both clinical assessment and practical, real-life impact.
How to Communicate Your Functional Capacity to the NDIS
This is where many participants struggle.
You’re used to coping. You adapt. You push through.
But when speaking to the NDIA, it’s important to describe your worst days, not your best days.
Here are practical tips:
Be specific
Instead of: “I struggle with fatigue.”
Say: “After 10 minutes of standing, my legs become weak and I need to sit down. I cannot safely prepare meals without rest breaks.”
Describe frequency
Is it daily? Weekly? Fluctuating?
Explain risk
Is there a falls risk? Burns risk? Medication errors?
Explain supervision needs
Do you need prompting? Physical assistance? Full support?
Link limitations to support needs
“I cannot shower safely without supervision due to balance instability.”
Clear, direct functional language is what leads to appropriate funding.
What If Your Functional Capacity Changes?
If your condition progresses or changes, your functional capacity changes too.
This is grounds for a plan reassessment.
You can request a review if:
- You need more hours of support
- Your mobility has declined
- You now require equipment
- Safety risks have increased
Updated reports from your OT, GP or specialist are essential.
How Plan Management Helps
While Plan Managers don’t assess or coordinate clinical care, we do help you understand how your functional capacity connects to your funding categories.
We help you:
- Understand what your current funding covers
- Track spending if needs increase
- Identify when funding may not match your supports
- Prepare financially for reassessments
Plan management is funded under Management of Funding for Supports and does not reduce your other budgets.
Our team will always reference your file and plan history so you don’t need to repeat your situation every time you call.
Ready to Feel More Confident About Your NDIS Plan?
If you’re unsure whether your funding reflects your functional capacity — or you’re preparing for a review — you don’t have to navigate it alone.
Join Plan Hero and let us simplify the financial side of your NDIS plan, so you can focus on your daily life and the supports that matter most.
Switch to Plan Hero today and experience plan management that’s clear, calm and practical.
