16/09/2026
Now if only the NDIS were to create a consistent template for OT’s to write the NDIS required FCA’s we may have a lot more consistency and improved outcomes … oh and read the recommendations . Is that asking to much ?
NDIS functional capacity definition has changed: What You Need To Know!
The amended NDIS legislation introduced a new statutory definition of functional capacity, which came into effect on 27 August 2026.
Under the amendments to the NDIS Act, A person’s functional capacity in relation to any activity is defined as the person’s ability to undertake the activity without the assistance from other people or assistive technology equipment, or only with:
i. "The assistance from assistive technology or modifications that are commonly used by a person to undertake that activity;
ii. If the person is a child, the child undertakes the activity with assistance from other people that is appropriate to the child’s age; and
iii. The person’s environmental and personal circumstances is excluded when considering their ability to undertake an activity."
Functional capacity remains central to NDIS access. Under the amended s24, a person must have substantially reduced functional capacity in at least one of six functional domains (called 'activities' in the legislation): communication, social interaction, learning, mobility, self-care or self-management.
Importantly, the legislation now requires the relevant activity to be considered “as a whole.”
This is an important distinction. Functional capacity should not be understood solely by asking whether a person can complete one particular task within an activity. The assessment needs to consider the person's capacity across the relevant activity as a whole.
For OTs, this has implications for how functional evidence is documented. Reports should clearly describe the functional impact of disability across the relevant activity, including the person's abilities, limitations and support requirements, rather than relying on isolated examples of task performance.
There is still uncertainty about how the NDIA will operationalise the new definition and apply the “whole of activity” requirement in access decision-making.
For now, the key point is that functional evidence submitted to the NDIA should reflect the amended legislative definition and the new requirement to consider the relevant activity as a whole.
This is an important change in the functional construct underpinning NDIS access - and one OTs need to understand as we prepare functional evidence for our clients.
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