‘Functional Capacity’ is a term used by the NDIS

Functional capacity is a core idea of the NDIS. It means the impact of disability on what a person can do in everyday life. It is important because it is different from a diagnosis and is not intended to be medical in nature. 

Functional capacity has been a central part of NDIS access since the Scheme began. To access the NDIS, a person has had to show that their disability results in ‘substantially reduced functional capacity’ as well as showing that their disability is permanent or likely to be permanent. ‘Substantially reduced functional capacity’ means having much more difficulty doing everyday activities than most people, because of disability 

Since the 2024 legislative changes, there is also a requirement that a person’s need for an NDIS support needs come directly from the disability that is recognised for NDIS purposes.

These three things are considered together when determining whether a person meets the disability requirements for NDIS access: whether they have substantially reduced functional capacity; whether their disability is permanent or likely to be permanent; and whether they have a need for supports that are NDIS supports, due to the disability recognised by the NDIS.

The definition of functional capacity has changed

The definition of functional capacity in the NDIS legislation has now changed. The change comes from the updated NDIS legislation, which began on 27 August 2026.

The new definition says a person’s functional capacity means their ability to do that activity without assistance from another person, assistive technology or equipment, or modifications. (See this part of the legislation for more details, Section 9b).

This is an important change because the definition of functional capacity is now more clearly written in the NDIS legislation. The NDIS will use this new definition to make decisions about whether a person can be an NDIS participant. 

The ‘whole activity’ must now be considered

There is another big change in the updated NDIS legislation, section 24. 

It says, the person must have substantially reduced functional capacity in at least one of six activities: communication, social interaction, learning, mobility, self-care or self-management.

The new legislation and NDIS Guidelines now clarify that, when the NDIS assess substantially reduced functional capacity, the activity must be assessed as a whole.

This matters because these six activity areas are broad. They contain many different tasks.

For example, someone may be able to physically shower independently while needing support with other aspects of self-care. Someone may be able to speak but have disability-related communication needs in everyday situations. Someone may be able to learn information but need support applying, organising or using that information independently.

Under the legislation change, NDIS assessing the ‘whole activity’ means that functional capacity can no longer be understood by NDIS by looking at whether a person can complete one, or some, tasks – they must look at whether the person can complete the activity ‘as a whole’. 

What does this mean for me, as a participant?

For now, the practical impact of these changes is not completely clear. Much will depend on how the NDIS uses the new definitions, and future assessments, to make decisions. Every Australian Counts will use our voice to try to make sure these are done fairly, and to urgently call for clearer operational guidelines.

What is clear is that evidence provided to the NDIS should consider the updated legal definition of functional capacity and the requirement to assess the ‘whole of the relevant activity’.

This means that evidence will need to clearly explain how a person’s disability affects your ability to undertake activities, across the range of tasks within the activity.

The detail of how the NDIS will consider the person’s evidence, and how functional capacity will be assessed in future, is still being worked through by the NDIS.

And that brings us to another important news item.

Consultation on the future of NDIS access is now open

The Australian Government has opened consultation on proposed changes to the way people get onto the NDIS.

The consultation is looking at how functional capacity should be assessed, what evidence people will have to provide, and how this evidence will be used by NDIS to make decisions about who becomes an NDIS participant. 

The Government says the aim is to make NDIS eligibility decisions clearer and fairer. Importantly, it is seeking the views and experiences of people with disability, families, carers, advocates, disability service providers and health professionals. 

This feedback will be given to the Technical Advisory Group (TAG), a group of experts brought together  in July 2026 to give advice to governments on how to make sure the people who need the NDIS, can become participants. The TAG is led by the Commonwealth Minister for Health, Disability and Ageing, the Hon Mark Butler MP, and the ACT Minister for Disability, Autism and Neurodiversity in the ACT Government, Ms Suzanne Orr MLA.

What is the community being asked?

The consultation asks what should be considered when designing ways to get onto the NDIS  that are fair and consistent

It also asks how getting onto the NDIS could be made easier to understand, for example, by clarifying what information is needed and how eligibility decisions are made. It asks what the assessment requirements should be. 

Another important question is whether the future NDIS assessments will work for all disability groups, including people with communication, cultural, cognitive, changing or complex support needs.

The consultation also asks what evidence should be considered when deciding whether disability is permanent or likely to be permanent, including whether any treatment is likely to improve the functional impact disability.

What types of feedback is sought?

The consultation questions matter because disability does not look the same for everyone.

A person may have a disability that is not immediately visible. Functional capacity can also change over time, for some people. Someone may have very different abilities depending on the environment, the demands of the activity, fatigue, pain, stress, sensory factors, communication demands or the level of support available.

This raises an important question about how a person’s functional capacity can be fairly understood. Should one assessment provide the answer, or should different forms of evidence be considered together?

Another question is what evidence should count. Clinical evidence, functional assessments, observations, information from families and carers, lived experience and other relevant evidence may each provide different information about how disability affects a person’s everyday functioning.

There is also an important question about capacity building and treatment, and what they mean for permanence of disability. A person may have permanent disability while their functional capacity can still change with the right intervention, therapy, assistive technology or environmental supports. The fact that someone’s function may improve does not necessarily mean that their underlying disability is not permanent.

This is an opportunity to have your say

The future NDIS access process is still being designed. The community therefore has an opportunity to contribute to how functional capacity is understood, what evidence is considered and how decisions are made about who becomes an NDIS participant

If you are a person with disability, family member, carer, advocate, health professional or disability provider, your experience can help identify what works, what does not and what needs to be considered in a future system.

The consultation is open until 2 October 2026.

Every Australian Counts will be making a submission, and you can too. We’d love to hear your views so we can make sure we include. Feel free to get in touch with us on