What Is a Functional Capacity Assessment and Do You Need One for Your NDIS Plan?

If you or someone in your family is applying for the NDIS, preparing for a plan review, or seeking additional supports, you may have been told you need a Functional Capacity Assessment. It's one of the most commonly requested allied health reports in the NDIS system, and one of the least understood. This guide explains exactly what a Functional Capacity Assessment is, when you need one, and how to access this service across Lake Macquarie, Morisset and the Hunter Valley.

What is a Functional Capacity Assessment?

A Functional Capacity Assessment (FCA) is an evaluation conducted by a registered Occupational Therapist (OT) that documents how a person's disability, health condition or impairment affects their ability to perform everyday activities. It assesses capacity across domains such as self-care, mobility, communication, community participation, domestic tasks, and safety at home and in the community.

The resulting written report is used as formal evidence for the NDIS, providing planners and LACs with a clear clinical picture of what supports the person requires, at what frequency and intensity, and why. Without a well-prepared FCA, participants often receive underfunded plans that don't reflect their actual support needs.

When do you need a Functional Capacity Assessment?

An FCA is most commonly needed in the following situations: applying for the NDIS for the first time (as supporting evidence for access), at NDIS plan reviews where the current plan does not adequately reflect support needs, when requesting a change of circumstances review, when requesting higher-level supports such as Supported Independent Living (SIL) or Specialist Disability Accommodation (SDA), and when applying for assistive technology (AT) or home modification funding. Your Support Coordinator or LAC will usually advise you if an FCA is needed.

What happens during an FCA?

A Functional Capacity Assessment typically takes between one and three hours to complete, depending on the complexity of the person's needs. The assessment includes a case history covering the person's diagnosis, medical history, current supports, living situation and daily routine. The OT then uses a combination of standardised assessment tools (chosen based on the presenting diagnosis and age) and direct functional observation to evaluate capacity across relevant life domains.

After the assessment, the OT prepares a detailed written report. This report describes the person's functional abilities and limitations, identifies the supports required, recommends specific NDIS line items and funding levels, and may include recommendations for assistive technology or environmental modifications. The report is formatted to meet NDIS evidence requirements and is submitted to the planner or LAC as part of the plan review or access request.

Who can complete an NDIS Functional Capacity Assessment?

Functional Capacity Assessments must be completed by a registered allied health professional, most commonly an Occupational Therapist registered with AHPRA (the Australian Health Practitioner Regulation Agency). The OT must have relevant clinical experience and understanding of the NDIS evidence framework. It is important to ensure that the OT completing your FCA is familiar with current NDIS guidelines, as requirements are updated regularly.

Functional Capacity Assessments in Lake Macquarie at Watagan Health Hub

Watagan Health Hub is launching its Occupational Therapy service mid-2026, providing mobile FCA services across Lake Macquarie, Morisset, Cooranbong, Newcastle and the Hunter Valley. Our OT will be AHPRA-registered and experienced in NDIS reporting. Register your interest now to be first in line. Visit our occupational therapy Lake Macquarie page for full details. You can also read our guide to NDIS music therapy funding for more information on how the NDIS funds allied health services. Watagan Health Hub is your local allied health Cooranbong clinic for the Lake Macquarie region.