NDIS Functional Capacity Reports: What to Include for Stronger Plan Outcomes
Functional Capacity Reports (FCRs) are one of the most influential pieces of evidence to justify funding in an NDIS participant’s journey. When done well, they can directly impact the level of support a person receives in their NDIS plan. But too often, these reports fall short, not because allied health professionals lack the skill, but because the nuances of NDIS language and expectations aren’t always clear.
At Achora, we’re hoping to remove that barrier. Whether you’re an occupational therapist, physiotherapist, psychologist, speech pathologist, or any other allied health provider, this article will walk you through the key elements that make a Functional Capacity Report that is effective, NDIS-aligned, and genuinely helpful for the participant you’re supporting.
What Is a NDIS Functional Capacity Report?
A Functional Capacity Report is a formal document completed by an allied health professional that assesses a participant’s ability to perform daily activities across key life domains. It outlines the person’s strengths, challenges, support needs, and recommendations. Most importantly, it serves as key evidence to justify specific funding in an NDIS plan. Especially, for items like Assistive Technology (AT), home modifications, support workers, therapy, and Supported Independent Living (SIL).
A well-written FCR:
- Supports access to the NDIS or plan reviews
- Helps justify “reasonable and necessary” supports
- Clarifies a participant’s capacity across life domains
- Aligns with NDIS language, goals, and frameworks
What the NDIA Looks For in a Functional Capacity Report
The NDIA assesses reports through the lens of the “reasonable and necessary” criteria, as well as the participant’s goals. We recommend taking the time to understand the requirements for reasonable and necessary support and your participant’s goals. The more clearly you can link your clinical recommendations to both, the better the outcome.
Reports should:
- Be written in plain English
- Provide measurable observations
- Avoid vague or overly medicalised language
- Include real-life examples of challenges and supports
- Link recommendations to the participant’s stated goals
Key Sections to Include in an Effective FCR
1. Participant Overview
Start with a summary of the participant’s background, living situation, support network, cultural identity, and any relevant diagnoses. Keep this section factual but person-centred.
2. Assessment Methodology
State what tools, observations, interviews, or clinical assessments you used. Whether it’s the Vineland Adaptive Behaviour Scales, COPM, or standardised mobility assessments—be transparent.
3. Functional Domains
Describe the participant’s capacity across each key life area:
- Mobility
- Communication
- Self-care
- Self-management
- Learning
- Social interaction
Use real-life examples (e.g., “Jimmy requires prompting and assistance to initiate showering each morning”) and describe both strengths and limitations.
4. Environmental Considerations
Note how the participant’s home or community setting impacts their function. Is it accessible? Are there safety concerns? Are there informal supports in place?
5. Recommendations
Here is where your clinical expertise meets NDIS criteria. Make evidence-based recommendations and link them to:
- The participant’s goals
- Their level of functional impairment
- The supports needed to enhance independence, safety, or participation
Examples:
- “Due to Emma’s reduced mobility and frequent falls, a shower chair and grab rails are recommended to increase safety and reduce carer strain.”
- “Ongoing OT sessions (1x/week for 12 months) are recommended to build capacity in meal preparation, a key life skill linked to her goal of living more independently.”
6. Goal Alignment
Explicitly link recommendations to the participant’s NDIS goals. This is critical. If the participant’s goal is to build confidence in social situations, explain how a psychologist’s intervention or social skills group supports this.
Tips for Writing with Impact
Use NDIS-Aligned Language
Terms like functional impact, capacity building, informal supports, and reasonable and necessary signal to the planner that your report aligns with scheme requirements. If you’d like a guide unpacking these key terms, please reach out to our team.
Be Clear, Not Clinical
Avoid medical jargon or the overuse of medical terms. Explain conditions and impairments in simple, accessible language.
Provide Evidence, Not Just Opinion
Back up your recommendations with observations, assessment results, and clinical reasoning. Ask yourself: Have I provided evidence of previous therapies trialled? Have I measured and provided detail about how a participant’s functional ability is progressing towards their therapy outcomes and NDIS goals?
Include a Summary Table
A concise table at the end summarising recommendations, frequency, and expected outcomes can make a huge difference for the reader.
Collaborate With the Participant
Ensure their voice, goals, and preferences are embedded throughout the report. It should be written with them, not just about them.
Common Mistakes to Avoid
- Repeating the participant’s diagnosis without explaining the functional impact
- Using a one-size-fits-all template without tailoring
- Failing to link recommendations to goals
- Recommending supports without clinical justification
- Forgetting to include environmental or social context
The Best Functional Capacity Reports Maximise An NDIS Plan
Writing a Functional Capacity Report isn’t just a box-ticking exercise. It’s a powerful advocacy tool that can shape the life of the person you’re supporting. When done well, it tells a story that’s not just about limitations, but about possibility, progress, and person-centred care. Whether it’s a plan reassessment, a new application, or evidence for assistive technology or housing, your report plays a vital role in helping the NDIA understand the full picture.
If you’re ever unsure, consult the latest NDIA guidelines, collaborate with Support Coordinators, or reach out to experienced peers. And most importantly, keep the participant at the heart of every word you write.
