What Is an NDIS Functional Capacity Assessment?

A Functional Capacity Assessment (FCA) is a detailed evaluation that explores how a person’s disability affects their ability to complete everyday activities. It provides objective information about a participant’s current abilities, support needs, and the type of assistance that will help them work towards greater independence.

In the context of the National Disability Insurance Scheme (NDIS), FCAs are commonly used to help the participant, their support team, and the NDIS identify what supports are reasonable and necessary to help them pursue their goals.

An FCA looks beyond diagnosis alone. It focuses on how someone manages practical tasks in daily life — from self-care and household routines to mobility, cognition, and community participation. The results guide future planning, therapy, and support recommendations.

Why Do People Need a Functional Capacity Assessments in NDIS?

Within the NDIS, the purpose of a Functional Capacity Assessment is to:

• Provide evidence of functional limitations across one or more life domains.

• Support access or plan reviews, ensuring that funding decisions are based on reliable clinical data rather than assumptions.

• Identify areas for capacity building, including therapy goals, assistive technology needs, and environmental supports.

• Guide collaboration between participants, families, support coordinators, and allied health professionals.

  
  

Participants may have an FCA when they first apply for NDIS access, at the start of their plan, or during a review to demonstrate progress or changes in needs.

For many people, the assessment also serves as a way to better understand their own strengths and challenges — helping them take a more active role in goal setting and self-management.

For more detail, see the NDIS Operational Guidelines on functional capacity.

Who Can Perform a Functional Capacity Assessment?

A registered Occupational Therapist (OT) is most commonly the professional who carries out a Functional Capacity Assessment. OTs are trained to examine how physical, cognitive, sensory, and psychosocial factors influence a person’s participation in everyday activities.

Depending on the focus of the referral, other allied health professionals may also contribute:

• Physiotherapists may assess physical mobility, balance, and endurance.

• Speech Pathologists may evaluate communication and swallowing function.

• Psychologists may assess cognitive or behavioural aspects impacting daily function.

During the process, the clinician gathers information from multiple sources — including the participant, family members, carers, and existing health records — to create a complete picture of function and support needs.

How Long Does a Functional Capacity Assessment Take?

The duration varies depending on complexity and the purpose of the report. Typically, the process involves:

• 2–3 hours of direct assessment (conducted over one or two sessions)

• 8–10 hours of clinical analysis, liaison, and report writing

Reports prepared for funding reviews or complex disability presentations may require additional time to ensure sufficient evidence and justification.

Before the assessment begins, the therapist will explain the expected time, cost, and approach so that participants and support coordinators can plan accordingly.

Can a Functional Capacity Assessment Be Done Online?

Yes. Many Functional Capacity Assessments can be completed via telehealth using secure video conferencing platforms. This option can be particularly useful when:

• The participant lives in a regional or remote area of Victoria.

• Travel or mobility barriers make in-person appointments difficult.

• There are delays in accessing local clinicians.

While some components such as physical or environmental assessments may be better completed face-to-face, telehealth can still provide a valid and efficient way to conduct much of the assessment.

Clinicians often combine online interviews with input from carers, support workers, or local health providers to ensure accuracy.

What Happens During a Functional Capacity Assessment?

Although the NDIS does not prescribe a single assessment format, most FCAs include the following components:

1. Initial Interview

The clinician begins by discussing the participant’s background, health history, living situation, and goals. Information is gathered from the participant and with consent from family members, carers, or support coordinators.

2. Observation of Daily Activities

The therapist observes or discusses how the person completes Activities of Daily Living (ADLs) such as showering, dressing, toileting, and feeding. They also explore Instrumental Activities of Daily Living (IADLs) such as cooking, cleaning, shopping, and managing finances.

3. Standardised and Non-Standardised Assessments

Clinicians may use validated tools such as:

• the Canadian Occupational Performance Measure (COPM) to identify goal priorities,

• the Assessment of Motor and Process Skills (AMPS) to evaluate task performance, or

• the Functional Independence Measure (FIM) to measure assistance levels.

These tools ensure that findings are consistent and evidence-based.

4. Cognitive and Communication Review

If relevant, the assessment explores memory, problem-solving, attention, and communication skills that affect daily functioning.

5. Environmental Assessment

When required, the therapist may review the home or community environment to identify safety risks or recommend modifications (e.g., handrails, ramps, adaptive equipment).

6. Analysis and Goal Setting

Findings are discussed with the participant and their support network to identify achievable goals aligned with NDIS objectives.

What Does a Functional Capacity Assessment Report Include?

The written FCA report provides a structured summary of all findings and recommendations. It usually includes:

1. Background information: participant details, diagnoses, and current supports.

2. Summary of assessment methods: interviews, observations, and tools used.

3. Functional profile: performance across ADLs, IADLs, mobility, cognition, communication, and social participation.

4. Strengths and limitations: areas of independence and where assistance is required.

5. Recommendations: evidence-based suggestions for therapy, assistive technology, or environmental supports.

6. Alignment with NDIS goals: showing how each recommendation helps achieve the participant’s aspirations.

7. Clinical justification: linking recommendations to the NDIS “reasonable and necessary” criteria.

8. Plan for implementation: outlining next steps, timeframes, and review processes.

   
   

Reports are written in clear, accessible language for use by participants, support coordinators, plan managers, and NDIS planners.

Refer to the NDIS Operational Guidelines – Reasonable and Necessary Supports for details on how recommendations are evaluated.

Does the Same Therapist Provide Therapy Afterwards?

Sometimes the same clinician who conducts the Functional Capacity Assessment also delivers ongoing therapy. In other cases, a separate therapist or provider may take over.

This decision depends on several factors:

• The participant’s preferences and comfort level

• The therapist’s availability and area of expertise

• Organisational policies or referral pathways

• The need for impartiality in assessments versus intervention

Regardless of who provides therapy afterwards, the FCA report serves as a comprehensive guide to ensure consistent and coordinated care.

Do You Need a Functional Capacity Assessment to Apply for the NDIS?

Costs and NDIS Funding

Functional Capacity Assessments are typically funded under Capacity Building – Improved Daily Living (CB Daily Living) in an NDIS plan.

Charges are based on the NDIS Price Guide for allied health therapy services. A standard assessment may include:

• Initial interview and assessment sessions

• Review of supporting documents

• Communication with relevant professionals

• Report writing and submission

  
  

The total cost depends on complexity and reporting requirements. Participants or their support coordinators should confirm time estimates and pricing before booking.

Privately funded assessments are also available for those waiting on plan approval or who require documentation for other agencies or insurers.

Arranging a Functional Capacity Assessment

For participants in Melbourne or regional Victoria, Functional Capacity Assessments can be arranged directly through local Occupational Therapy providers or through your Support Coordinator or Plan Manager.

Assessments may be completed:

• In your home or community setting

• At a clinic

• Via secure telehealth video sessions

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All reports should meet NDIS standards and include clear recommendations to support your next plan or funding request.

For more information or to enquire about assessment availability in Victoria, you can contact us Flourish Health – Occupational Therapy Services