Understanding How the NDIS Assesses Disabilities: Key Differences Between Functional Impact and Diagnosis
How Does the NDIS Assess Disabilities?
The NDIS is designed to provide tailored support to Australians living with disabilities. However, the way it assesses eligibility can sometimes be unclear. The NDIS doesn’t rely solely on a medical diagnosis to determine eligibility; instead, it takes a functional approach, focusing on how a disability impacts a person’s ability to perform everyday tasks and engage with the community.NOTE: The NDIS does not fund diagnoses. It funds support needs. The clearer you can show how your disability affects your daily functioning, the stronger your access request — and your resulting plan — will be.This distinction is important because it ensures that the NDIS supports individuals based on their real-life needs, rather than just a diagnosis. Let’s break down the assessment process:
1. Functional Impact: The Core of NDIS Eligibility
When determining eligibility, the NDIS primarily focuses on the functional impact of a disability. This means that the NDIS is more concerned with how a disability affects a person’s ability to complete day-to-day activities than with the condition itself. This ensures that support is person-centered, providing services that are customised to the specific challenges faced by individuals.

Functional impact includes, but is not limited to, the following areas:
- Personal Care: Is support needed to complete tasks such as dressing, bathing, or personal hygiene?
- Mobility: Does the person need assistance with moving around their home or in the community?
- Communication: Does the person need help expressing themselves or understanding others?
- Social Participation: Is participation in family, work, education, or social activities limited by the disability?
The NDIS is committed to assessing the functional limitations that people experience and providing support that helps them live as independently as possible, regardless of the nature of their disability.
2. The Role of Diagnosis in NDIS Assessments
While the NDIS primarily focuses on functional impact, a diagnosis can still play a role in understanding the person’s condition. A diagnosis can help to provide context for the disability and may inform specific treatment or interventions needed. However, it is not the sole factor that determines eligibility for support under the NDIS.
For instance:
- Two individuals diagnosed with cerebral palsy might have different needs: one person may experience significant challenges with movement, while another may require support with communication or cognitive development. While their diagnoses are the same, the functional impact differs, and their NDIS supports will be tailored accordingly.
- Similarly, two individuals with autism spectrum disorder (ASD) may have varying functional needs. One may need support with social communication, while the other might need help with managing sensory overload. The NDIS assesses these impacts individually, not simply based on the diagnosis itself.
This functional-first approach ensures that support is personalised and responsive to individual needs, regardless of a person’s diagnosis.
3. Why Functional Impact is Central to the NDIS Approach
The NDIS prioritises functional impact because it ensures a more inclusive and individualised approach to disability support. Disabilities do not always present in the same way for all individuals, even with the same diagnosis. The functional impact can vary significantly between individuals, so recognising this allows the NDIS to better support people based on their specific challenges in everyday life.
For example:
- Two people with multiple sclerosis (MS) might have very different needs. One person might have difficulty walking, while the other might struggle with fatigue or cognitive challenges. The NDIS looks at these functional limitations to provide the support each person needs, rather than applying a generic solution based on their condition.
By focusing on functional outcomes, the NDIS empowers individuals to live more independently, participate in work, and engage fully in community activities. This approach is designed to enhance the quality of life and create opportunities for inclusion for people with disabilities.
4. How the NDIS List of Disabilities Relates to Your Assessment
If you're interested in learning more about the types of conditions covered under the NDIS, we recommend checking out the NDIS List of Disabilities. This list provides a comprehensive guide to the range of disabilities that may be eligible for NDIS support, and it can help clarify which conditions may qualify for funding and services.
While the list is useful, it’s important to note that the NDIS doesn’t just look at whether a condition is listed. Eligibility is based on the functional impact of the condition and how it affects a person’s ability to participate in daily life. So, even if a specific condition is not listed, you may still be eligible for support if you can demonstrate how the disability affects your functioning.
How to Prepare for Your NDIS Assessment
If you're preparing for an NDIS assessment, it’s important to understand the process and gather the necessary documentation. Here are some tips to help you prepare:1. Document Your Functional Impact: Focus on how your disability affects your ability to perform day-to-day tasks. The NDIS is interested in understanding the real-life challenges you face, so be as specific as possible.
2. Gather Supporting Evidence: Provide reports from your healthcare professionals, therapists, or other relevant specialists who can explain how your disability impacts your daily functioning.
3. Prepare to Discuss Your Daily Challenges: Be ready to talk about specific activities where you may need help, such as going to the store, taking public transportation, or attending appointments.
4. Seek Support: The process can be complex, so it can help to work with a support coordinator or planner who is experienced with the NDIS. Kuremara can help you through the application process and ensure your needs are properly represented.
Impairment Notices: The New Language of NDIS Eligibility
Since 1 January 2025, the NDIA has issued all new NDIS participants an Impairment Notice as part of the access decision. This represents a meaningful shift in how the scheme classifies and communicates eligibility and it has direct consequences for what supports can be funded in your plan. Under the previous system, eligibility was largely framed around your diagnosis. Under the new system, it is framed around your impairments, the functional limitations that arise from your disability. The NDIA now classifies these impairments into six categories:| Impairment Category | What It Covers |
| Intellectual | Limitations in cognitive function, including learning, memory, problem-solving, and adaptive behaviour |
| Physical | Limitations in movement, strength, coordination, endurance, or physical functioning |
| Psychosocial | Limitations arising from mental health conditions that have a significant and permanent impact on daily functioning |
| Sensory / Speech | Limitations in vision, hearing, or speech that significantly affect daily participation |
| Neurological | Limitations arising from neurological conditions affecting brain function, cognition, or movement |
| ASD | Limitations specific to Autism Spectrum Disorder, including social communication and sensory processing |
Conclusion
Understanding the NDIS assessment process is essential for individuals seeking the support they need. By focusing on functional impact rather than just medical diagnoses, the NDIS ensures that support is provided based on an individual’s real-life needs. If you’re preparing for an NDIS assessment, remember to document your functional challenges and reach out for assistance when needed. For more information on the disabilities covered under the NDIS, check out the NDIS List of Disabilities, and don’t hesitate to contact Kuremara for further guidance.Action step: When you receive your Impairment Notice, read it carefully alongside your diagnosis reports. If you believe an impairment has been missed or mislabelled, do not wait until your plan review to raise it. Contact your Support Coordinator or the NDIA promptly.
Frequently Asked Questions (FAQs)
1. What is the primary factor in the NDIS assessment process?
The NDIS prioritises functional impact, which means the way a disability affects a person’s ability to perform everyday activities. A diagnosis is important for context, but the NDIS is more concerned with how it impacts daily life.
2. Can I access NDIS support if my disability is mild?
Yes, even mild disabilities may qualify for NDIS support if they significantly impact a person’s ability to function in day-to-day activities. The focus is on the functional consequences rather than the severity of the disability.
3. What if my disability isn’t listed in the NDIS List of Disabilities?
Even if your condition is not specifically listed, you may still be eligible for NDIS support if you can demonstrate how it affects your daily life and ability to function. The functional impact of your condition is the most important factor.
4. How can Kuremara help with my NDIS assessment?
Kuremara provides guidance to help you understand and navigate the NDIS process. We can assist with preparing your application, ensuring your functional needs are clearly communicated, and offering advice on gathering the necessary documentation.
care@kuremara.com.au
