Australia’s NDIS reform is entering an important new phase, with experts being brought together to help shape how functional capacity will be assessed in the future.
The University of Monash has announced that Professor Joel Townsend, Director of Monash Law Clinics, has been appointed to a new Technical Advisory Group focused on NDIS functional capacity.
The development comes as the Australian Government works on reforms aimed at making NDIS access and assessment processes clearer, more consistent and evidence-based.
What is the Technical Advisory Group?
The Technical Advisory Group, known as the TAG, has been established to provide expert advice to governments about how functional capacity should be assessed under the NDIS.
According to Monash Law, the group met for the first time in early July 2026. Its work will focus on developing an approach that is fair, consistent and grounded in evidence.
The group is expected to consider important questions such as:
- What should be considered a “substantial” reduction in functional capacity?
- What evidence should people provide when demonstrating their functional capacity?
- How should functional capacity be assessed consistently across different disabilities and circumstances?
- Where should assessment thresholds be established?
- How can the assessment process be made clearer and more transparent?
These questions matter because functional capacity is already an important part of determining NDIS eligibility.
Why functional capacity matters
NDIS eligibility is not based simply on a person’s diagnosis.
Functional capacity refers to how a person’s impairment affects their ability to perform everyday activities and participate in life.
The NDIS currently identifies six major areas of functional capacity:
- Communication
- Social interaction
- Learning
- Mobility
- Self-care
- Self-management
The NDIS also explains that a functional capacity assessment can examine a person’s ability to perform everyday activities at home, at work and in the community.
Importantly, a formal functional capacity assessment is not automatically required for every NDIS application. Evidence about the impact of a person’s disability can also come from the person themselves, their treating professionals or carers.
What could change?
The Australian Government’s broader NDIS reform agenda includes making eligibility requirements clearer and introducing standardised, evidence-based assessments of functional capacity.
That means future applicants and people supporting them may see changes in how evidence about disability-related functional limitations is gathered, interpreted and assessed.
However, it is important not to assume that the Technical Advisory Group has already changed NDIS eligibility rules.
The group is providing advice on the future assessment framework. It is not currently deciding whether individual people qualify for the NDIS.
The advice is expected to be delivered in stages during 2026, with further work continuing into 2027.
What does this mean for people applying for the NDIS?
For people considering an NDIS application, the development reinforces the importance of clearly documenting how a permanent impairment affects everyday functioning.
Rather than focusing only on a diagnosis, evidence should help explain the person’s actual functional difficulties, the support they require and how those difficulties affect daily life and participation.
This is particularly relevant because the NDIS already assesses functional capacity across multiple areas of daily living rather than relying on diagnosis alone.
What about existing NDIS participants?
The announcement does not mean that existing participants automatically lose their NDIS plans or that everyone’s eligibility will immediately be reassessed under a new system.
The Government’s reforms are being implemented over time, and individual changes will depend on the legislation, rules and processes that ultimately come into effect.
Participants should therefore be cautious about social-media claims suggesting that the new functional-capacity framework has already been fully implemented.
Why this reform matters
The way functional capacity is assessed can have a major impact on people with disability.
A system that is clearer and more consistent could make it easier for applicants and professionals to understand what evidence is relevant and how decisions are reached.
At the same time, any new assessment framework will need to recognise that disability can affect people differently and that functional limitations may vary depending on a person’s circumstances and environment.
The success of the reform will therefore depend not only on having standardised assessments, but also on ensuring that the process is fair, accessible and responsive to the lived experience of people with disability.
What happens next?
The Technical Advisory Group will continue its work during 2026 and into 2027, providing advice to governments about functional-capacity assessment.
For people with disability, families, carers and professionals working in the sector, this is an area worth watching closely.
The key message for now is simple: NDIS reform is underway, but the future functional-capacity framework is still being developed.
Any significant changes to eligibility or assessment requirements should be considered in light of the final legislation, rules and official NDIS guidance rather than preliminary announcements or speculation.
This article is for general information only and should not be taken as legal or NDIS eligibility advice.
Source: Monash Law, “Monash Law is helping to shape national NDIS reform”, 4 August 2026.
https://www.monash.edu/law/news-and-events/news/2026/national-ndis-reform