You’ll hear the term functional capacity a lot in the NDIS. It is an important concept when applying to the NDIS, planning supports and asking for a plan reassessment.
Changes to NDIS access assessments and the use of ‘functional capacity’ in them will start from 1 January 2028.
But what does functional capacity actually mean?
In simple terms, functional capacity is your ability to do everyday activities safely and independently.
The NDIS does not decide access or funding based on a diagnosis alone. It also considers how a person’s disability affects their day-to-day life. That impact is their functional capacity.
This resource explains what functional capacity means and why it is an important NDIS term.
- 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 relevant to:
- applying for the NDIS;
- planning and funding decisions;
- deciding what supports are reasonable and necessary;
- plan reassessments; and
- appeals and internal reviews.
When the NDIA looks at an application or plan change, it may consider:
- what a person can do independently;
- where they need help or have difficulty;
- any safety risks; and
- what support is needed, how often and why.
Clear evidence of daily-life impact can help the NDIA understand a person’s disability-related support needs.
The areas of functional capacity the NDIS looks at
The NDIS considers how a person’s disability affects key areas of daily life. For the disability requirements, these areas are communicating, socialising, learning, moving around, looking after yourself and managing your life.
Mobility
- walking;
- transferring, such as moving from bed to chair;
- balance;
- using stairs;
- risk of falls; and
- using mobility aids.
Self-care
- showering;
- dressing;
- toileting;
- grooming; and
- eating and drinking.
Communication
- speaking clearly;
- understanding others;
- using communication devices; and
- expressing needs.
Social interaction
- engaging with others;
- understanding social cues;
- managing behaviour; and
- participating in the community.
Learning and cognition
- memory;
- concentration;
- planning and organising;
- decision-making; and
- managing appointments or paperwork.
Self-management
- managing money;
- taking medication;
- following routines; and
- organising daily tasks.
A person’s NDIS plan is created based on their individual needs, goals and circumstances.
Functional capacity when applying for the NDIS
Under the current NDIS disability requirements, the NDIA considers:
- whether a person’s disability is caused by one or more impairments,
- whether the impairment is permanent or likely to be permanent, and
- whether it substantially reduces the person’s ability to do everyday tasks.
The NDIA also considers whether the impairment affects the person’s ability to work, study or take part in social life, and whether they are likely to need NDIS supports for their lifetime.
A diagnosis can be important evidence, but it may not explain how a person’s impairment affects everyday life. Supporting evidence should explain the functional impact and disability-related support needs.
For example, saying “I have multiple sclerosis” does not explain the same information as saying: “Due to MS-related fatigue and balance impairment, I need daily help with showering and am at high risk of falls without supervision.”
From 1 January 2028, access decisions are planned to use a standardised, objective evidence-based assessment of functional capacity.
What is the difference between ‘Objective’ and ‘Subjective’?
The NDIS currently uses a subjective, evidenced-based view which means they consider functional capacity in your specific situation.
When they move to an objective model, they will consider functional capacity in relation to specific impairments.
Current participants will start to be reassessed against the new access criteria from that date, progressively over 3 years. The Technical Advisory Group will advise on the assessment framework, tools and thresholds.
Functional capacity and your NDIS funding
NDIS planning considers the disability-related support a person needs because of reduced functional capacity. The supports in a plan must meet the NDIS funding criteria and be connected to the person’s individual needs, goals and circumstances.
For example, evidence about daily personal care needs, falls risk, equipment needs or therapy needs may help explain the supports being requested. Funding is decided by the NDIA; it is not automatic.
When daily-life impact is clearly explained, the NDIA has better information to consider a person’s disability-related support needs.
How functional capacity is measured
Functional capacity assessments
A functional capacity assessment is commonly completed by an occupational therapist. It may consider what a person can do independently, what assistance they need, how long tasks take, fatigue, safety risks and environmental barriers.
A report may link functional limitations to recommended supports.
Standardised assessment tools
Health professionals may use tools such as:
- WHODAS (World Health Organization Disability Assessment Schedule);
- PEDI-CAT for children;
- the Functional Independence Measure (FIM);
- mobility scales; and
- cognitive screening tools.
These tools can provide information about functional capacity. The most suitable evidence depends on the person’s circumstances and the reason the evidence is needed.
Real-world evidence
Relevant evidence may also include:
- incident reports, such as falls or hospitalisations;
- carer statements;
- support worker reports; and
- therapy progress notes.
The NDIS can consider clinical evidence and practical information about a person’s daily life.
How to communicate your functional capacity to the NDIS
It is helpful to describe your daily experience clearly and honestly, including how your needs can vary on difficult days.
Be specific. Instead of saying “I struggle with fatigue”, explain what happens. For example: “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. Explain whether something happens daily, weekly or at different times.
Explain risks. This may include falls, burns or medication errors.
Explain supervision needs. Describe whether you need prompting, physical assistance or full support.
Link limitations to support needs. For example: “I cannot shower safely without supervision because of balance instability.”
What if your functional capacity changes?
A change in functional capacity may mean a person needs different NDIS supports. From 27 August 2026, a participant can ask for an unscheduled plan reassessment when there has been a significant and ongoing change in their functional capacity and support needs, or in their living, education, work or informal support arrangements.
To make this type of request, the participant, plan nominee or child representative must submit the Plan reassessment request form.
The form must explain what has changed and why a reassessment is needed. It must include recent evidence, usually dated within 4 months of the request and after the current plan was approved.
A provider, support coordinator, friend or family member cannot submit the formal reassessment request only because the participant has given consent. They can still help a participant gather evidence and explain the change.
The NDIA has up to 90 days after receiving a valid request to decide whether to reassess the plan, not reassess it or vary it. The current plan can still be used while the NDIA makes this decision.
If the change is urgent, minor, short-term or one-off, a plan variation may be more appropriate than a reassessment.
How plan management helps
Plan managers help participants manage their NDIS funding budgets, pay invoices and keep track of spending and funding periods. They do not assess functional capacity, make NDIS access or planning decisions, or connect participants with providers.
Plan management is funded under Management of Funding for Supports and does not reduce other NDIS budgets.
Ready to feel more confident about your NDIS plan?
If you are unsure whether your funding is keeping pace with the supports in your plan, Plan Hero can help simplify the financial side of plan management.
Join Plan Hero for plan management that is clear, calm and practical.
