NDIS: Have Your Say on Functional Capacity & Access Changes
Understanding NDIS Functional Capacity: What the Recent Changes Mean for You
After eight years working deeply within the NDIS, I’ve seen how important it is for participants, families, and providers to really grasp the core ideas of the Scheme. One of the most fundamental concepts has always been “functional capacity.” It’s a term that often comes up in conversations about NDIS access and planning, and it’s recently seen some important changes.
Let’s break down what functional capacity means, why these changes matter, and what you need to know moving forward.
What is “Functional Capacity” in the NDIS?
Simply put, functional capacity describes how a person’s disability impacts their ability to do everyday things. It’s about what you can do, rather than just a medical diagnosis. The NDIS looks at how your disability affects your daily life, not just the diagnosis itself.
Since the very start of the NDIS, to be eligible for the Scheme, a person needs to show that their disability causes a “substantially reduced functional capacity.” This means you have much more difficulty doing daily activities compared to most people, specifically because of your disability.
Additionally, your disability must be permanent or likely to be permanent. Now, following legislative changes in 2024, there’s also a clearer requirement: your need for NDIS supports must directly arise from the disability that the NDIS recognises.
So, when the NDIS considers your access, they look at these three things together: if you have a permanent or likely-to-be-permanent disability, if it results in substantially reduced functional capacity, and if your need for specific supports comes directly from that disability.
How the Definition of Functional Capacity Has Changed
A key update came into effect with the new NDIS legislation on 27 August 2026. This legislation has put a clearer definition of functional capacity right into the NDIS rulebook.
The updated definition states that your functional capacity refers to your ability to do an activity without any help from another person, assistive technology (like a wheelchair or communication device), equipment, or modifications to your environment. This is a significant clarification, as it sets a clear benchmark for how the NDIS will assess eligibility.
From my experience, having this laid out so explicitly in the legislation helps both participants and providers understand what the NDIS is looking for during assessments. It means that when they review applications, they’ll be using this specific, written definition to decide if someone can become an NDIS participant.
The “Whole Activity” Approach to Assessment
Another big shift in the updated legislation (Section 24) is how functional capacity is assessed across six key life areas. To meet the NDIS disability requirements, you need to have substantially reduced functional capacity in at least one of these six areas:
- Communication
- Social interaction
- Learning
- Mobility
- Self-care
- Self-management
Crucially, the new NDIS Guidelines now clarify that when assessing “substantially reduced functional capacity,” the NDIS must look at the activity as a whole. This is really important because these six areas are very broad, covering many different tasks.
For example, someone might be able to wash themselves physically, but still need a lot of support with other parts of self-care, like managing personal hygiene or making decisions about their health. Or, a person might be able to speak clearly but struggle with the social aspects of communication in different settings due to their disability.
This “whole activity” approach means the NDIS can no longer just tick off if you can do one small part of an activity. They must consider your capacity across all aspects of that activity area. It’s about looking at the full picture of how your disability affects you in daily life, which I believe is a more holistic and fair way to assess support needs.
What This Means for You as a Participant or Provider
Right now, the full practical impact of these changes is still unfolding. The way the NDIS uses these new definitions in future assessments will be key. My advice is always to be proactive and ensure your evidence is as clear and comprehensive as possible.
It’s vital that any evidence you provide to the NDIS – whether it’s from allied health professionals, doctors, or your own statements – clearly addresses this updated legal definition of functional capacity. This includes specifically demonstrating how your disability affects your ability to undertake activities across the full range of tasks within an activity area.
The NDIS is still working through the detailed operational guidelines for how they will consider this evidence and conduct future functional capacity assessments. So, while we wait for more specifics, focusing on thorough and detailed evidence is your best strategy.
Opportunity to Have Your Say: Consultation on Future NDIS Access
On top of these legislative changes, the Australian Government has opened a consultation process. This is a critical opportunity for everyone involved in the NDIS to contribute their voice.
The consultation is looking at how functional capacity should be assessed, what kind of evidence people will need to provide, and how the NDIS will use this evidence to decide who becomes a participant. The goal is to make NDIS eligibility decisions clearer and fairer for everyone.
They are actively seeking input from people with disability, families, carers, advocates, disability service providers, and health professionals. This feedback will go to the Technical Advisory Group (TAG), a panel of experts formed in July 2026. The TAG, led by the Commonwealth Minister for Health, Disability and Ageing (the Hon Mark Butler MP) and the ACT Minister for Disability, Autism and Neurodiversity (Ms Suzanne Orr MLA), advises governments on how to ensure the NDIS reaches those who truly need it.
Key Questions Being Asked
The consultation asks important questions like:
- How can the NDIS access process be fair and consistent for everyone?
- How can it be made easier to understand, with clear information about what’s needed and how decisions are made?
- Will future NDIS assessments work for all disability groups, including those with communication, cultural, cognitive, changing, or complex support needs?
- What evidence should be considered when determining if a disability is permanent or likely to be permanent, especially when treatments might improve functional impact?
Why Your Feedback Matters
These questions are crucial because disability affects everyone differently. It might not always be visible, and functional capacity can change over time or vary greatly depending on the environment, fatigue levels, pain, stress, or sensory factors.
How can functional capacity be fairly understood? Should it rely on one assessment, or a combination of clinical reports, functional assessments, observations from families and carers, and lived experience?
There’s also a significant point about “capacity building” and what it means for the permanence of a disability. Just because someone’s function might improve with therapy, assistive technology, or environmental supports, it doesn’t mean their underlying disability isn’t permanent. Your lived experience and professional insights are vital for shaping these considerations.
This is Your Chance to Influence the Future of NDIS Access
The NDIS access process is still evolving. This consultation is a powerful opportunity for you to help shape how functional capacity is understood, what evidence counts, and how decisions are made about who becomes an NDIS participant.
If you’re a person with disability, a family member, carer, advocate, health professional, or disability provider, your experience is invaluable. It can highlight what works well, what doesn’t, and what needs to be considered to create a truly inclusive and effective future system.
The consultation is open until 2 October 2026. I encourage everyone to share their views. Your voice truly makes a difference in building a better NDIS.
Understanding these changes is key for navigating the NDIS successfully. Keep gathering comprehensive evidence, stay informed, and engage with these opportunities to provide feedback. If you need support with your NDIS journey, don’t hesitate to explore the many dedicated local NDIS providers who can help guide you.
