EDUCATIONAL ARTICLE

Understanding Capacity Building Psychology for NDIS Participants

By David Hennessy, Clinical Psychologist

Capacity building psychology under the National Disability Insurance Scheme (NDIS) focuses on disability-related functional needs and goals. It may help eligible participants develop or maintain skills for everyday activities, independence and participation.

This article explains what capacity building psychology can mean in practice, how it may differ from mainstream psychological treatment, and why the purpose of the support matters when considering NDIS funding.

David Hennessy, Clinical Psychologist, outdoors beside the water

NDIS-funded psychology is not defined simply by the profession providing it. The purpose of the support, its relationship to disability-related functional needs, and whether it meets NDIS funding criteria are central considerations.

What Is Capacity Building Psychology?

Capacity building supports are intended to help NDIS participants build skills and increase independence. Current NDIA guidance describes capacity building therapy supports as supports that can help a person develop skills and independence with everyday activities at home, school, work or in the community.

Psychology is one of the therapy supports the NDIS may fund when the support meets NDIS funding criteria. Depending on the person’s disability-related needs and goals, psychological capacity building may involve emotional regulation, communication, problem-solving, decision-making, routines, social participation, adjustment or other functional skills.

The emphasis is therefore not simply on reducing symptoms. It is on how psychological knowledge and strategies may help the participant build or maintain functioning in areas of everyday life that are affected by disability.

Capacity Building and Maintenance Therapy Supports

Not every therapy support has to involve continual improvement. NDIA guidance distinguishes between capacity building therapy supports and maintenance therapy supports.

Capacity building therapy supports aim to develop skills and independence. Maintenance therapy supports may help a participant maintain their current functional capacity or prevent or delay a decline in their ability to carry out everyday tasks. For some people, a combination may be appropriate.

This distinction can be important for people whose disability is stable, fluctuating or progressive. A meaningful outcome may sometimes be developing a new skill, while at other times maintaining an existing ability can itself be important.

How Can Psychology Relate to Functional Capacity?

Functional capacity refers broadly to what a person can and cannot do in everyday life because of disability. Psychological factors can interact with functioning in many ways, and the relevant focus will differ between individuals.

Examples of capacity building psychology may include helping a participant to:

  • develop strategies for emotional regulation and coping
  • strengthen communication and interpersonal skills
  • improve problem-solving and decision-making
  • develop routines, planning and organisational strategies
  • build confidence with community participation or everyday activities
  • understand behavioural patterns and practise workable alternatives
  • develop strategies for disability-related stress, frustration, sensory demands, fatigue or pain
  • adjust to changes in disability, functioning or life circumstances

These are examples rather than a checklist. Useful support begins with the individual participant, their strengths, circumstances, disability-related needs and goals.

NDIS Psychology and Mainstream Psychological Treatment

An NDIS participant may need both disability supports and mainstream health care. These systems can involve some of the same professions, including psychologists, while serving different purposes.

NDIS-funded psychology may be appropriate when the support addresses disability-related functional needs and meets NDIS funding criteria. Mainstream health services remain responsible for clinical health and mental health services that sit within the health system.

The distinction is therefore better understood by asking what is this support for? rather than assuming that all work performed by a psychologist belongs to one funding system. A participant may appropriately receive NDIS-funded psychological support and mainstream psychological or medical treatment at the same time when each service has a different and legitimate purpose.

Capacity Building Psychology in Practice

In practice, capacity building is most useful when broad goals are translated into specific, workable skills and strategies. A goal such as becoming more independent, participating more in the community or managing everyday demands may involve several smaller steps.

Psychological work may include understanding barriers, identifying existing strengths, practising strategies, reviewing what happens between sessions and adapting the approach when something is not working. With the participant’s consent, family members, carers, support workers, support coordinators or other professionals may sometimes be involved so that useful strategies can be understood and supported across everyday settings.

Progress is not necessarily linear. Disability, health, environment, available supports and life circumstances can all affect what is realistic at a particular time. Person-centred capacity building should therefore remain responsive rather than assuming that independence means doing everything without support.

Assessment, Goals and Evidence

NDIA guidance indicates that therapy supports need to be evidence-based and that evidence may be required to show that a therapy support is appropriate for the participant. Therapy plans may include goals, strategies and ways of measuring progress or outcomes.

Psychological assessment and reporting can therefore help describe relevant functional difficulties, strengths, goals, progress and support needs where this is appropriate to the referral and within the psychologist’s scope of practice.

A psychologist can provide clinical information, assessment findings and recommendations. Decisions about NDIS access, plans and which supports are funded are made by the NDIA under NDIS legislation and funding criteria.

Frequently Asked Questions About Capacity Building Psychology

Can the NDIS fund psychology?

Yes. Current NDIA guidance lists psychology as a therapy support the NDIS may fund when the support meets NDIS funding criteria and is appropriate to the participant’s disability support needs.

Does capacity building mean I should eventually need no support?

Not necessarily. Capacity building aims to develop skills and independence, but the NDIS also recognises maintenance therapy supports that may help maintain functional capacity or prevent or delay decline. What is appropriate depends on the individual.

Is NDIS-funded psychology the same as mental health treatment?

Not necessarily. NDIS-funded psychology focuses on disability-related functional needs when the support meets NDIS funding criteria. Mainstream health services remain responsible for clinical health and mental health services. Some participants may appropriately use both systems for different purposes.

Does having a diagnosis automatically mean psychology will be funded?

No. A diagnosis alone does not determine whether a particular psychology support is funded. The participant’s disability-related needs, goals, plan and the applicable NDIS funding criteria are relevant.

Can capacity building psychology involve family or support workers?

Sometimes. With the participant’s consent, involving people who provide everyday support can help strategies be understood and practised across settings. Whether this is useful depends on the person’s preferences, goals and circumstances.

Related Psychology Services and Information

These pages provide the main service and referral pathways related to this educational article.
The companion service page for NDIS participants seeking psychological support focused on disability-related functional needs, everyday skills, independence and participation.
Referral information for NDIS participants, families, support coordinators and other referrers.

Related Educational Information

These resources provide further information about NDIS therapy supports, capacity building and related psychological support.
Current NDIA guidance explaining capacity building and maintenance therapy supports, evidence requirements and the types of allied health therapy the NDIS may fund.
NDIA information about capacity building support budgets and how they are intended to build skills and independence.
Current operational guidelines and related information published by the National Disability Insurance Agency.

References and Resources

  1. National Disability Insurance Agency. (2026). What are therapy supports? NDIS.
  2. National Disability Insurance Agency. (2026). What are capacity building supports? NDIS.
  3. National Disability Insurance Agency. (2026). Our guidelines: Therapy supports. NDIS.

NDIS legislation, operational guidance and funding arrangements can change. The NDIS website should be consulted for current information about funding and support categories.

Educational Disclaimer

This article provides general educational information about capacity building psychology and the NDIS. It does not determine whether a particular person, service or support will meet NDIS funding criteria and is not a substitute for individual psychological, medical, legal, plan-management or NDIS advice.

Enquiries and Appointments

If you are an NDIS participant, family member, support coordinator or other referrer and would like to discuss whether psychological support may be suitable, the Psychologist for NDIS Participants service page explains the support available through Hennessy Clinical Psychology.

Appointments are available in person in Varsity Lakes on the Gold Coast and by secure telehealth across Australia where appropriate.