austlii:cth/ARTA/2025/2571
General information, not legal advice.
ARTA
2025-12-04
Original judgment source is linked above.
(1) A person meets the disability requirements if:
(a) the person has a disability that is attributable to one or more intellectual, cognitive, neurological, sensory, or physical impairments or the person has one or more impairments to which a psychosocial disability is attributable; and
(b) the impairment or impairments are, or are likely to be, permanent; and
(c) the impairment or impairments result in substantially reduced functional capacity to undertake one or more of the following activities:
(d) the impairment or impairments affect the person's capacity for social and economic participation; and
(e) the person is likely to require supports under the National Disability Insurance Scheme for the person's lifetime.
(2) For the purposes of subsection (1), an impairment or impairments that vary in intensity may be permanent, and the person is likely to require supports under the National Disability Insurance Scheme for the person's lifetime, despite the variation.
(3) For the purposes of subsection (1), an impairment or impairments that are episodic or fluctuating may be taken to be permanent, and the person may be taken to be likely to require supports under the National Disability Insurance Scheme for the person's lifetime, despite the episodic or fluctuating nature of the impairments.
When is an impairment permanent or likely to be permanent for the disability requirements?
5.4 An impairment is, or is likely to be, permanent ... only if there are no known available and appropriate evidence-based clinical, medical or other treatments that would be likely to remedy the impairment.
5.5 An impairment may be permanent notwithstanding that the severity of its impact on the functional capacity of the person may fluctuate or there are prospects that the severity of the impact of the impairment on the person's functional capacity, including their psychosocial functioning, may improve.
5.6 An impairment may require medical treatment and review before a determination can be made about whether the impairment is permanent or likely to be permanent. The impairment is, or is likely to be, permanent only if the impairment does not require further medical treatment or review in order for its permanency or likely permanency to be demonstrated (even though the impairment may continue to be treated and reviewed after this has been demonstrated.
5.7 If an impairment is of a degenerative nature, the impairment is, or is likely to be, permanent if medical or other treatment would not, or would be unlikely to, improve the condition.
When does an impairment result in substantially reduced functional capacity to undertake relevant activities
5.8 An impairment results in substantially reduced functional capacity of a person to undertake one or more of the relevant activities - communication, social interaction, learning, mobility, self-care or self-management ... - if its result is that:
(a) the person is unable to participate effectively or completely in the activity, or to perform tasks or actions required to undertake or participate effectively or completely in the activity, without assistive technology, equipment (other than commonly used items such as glasses) or home modifications; or
(b) the person usually requires assistance (including physical assistance, guidance, supervision or prompting) from other people to participate in the activity or to perform tasks or actions required to undertake or participate in the activity; or
(c) the person is unable to participate in the activity or to perform tasks or actions required to undertake or participate in the activity, even with assistive technology, equipment, home modifications or assistance from another person.
Specifically with respect to s 24(1)(a), as the Court observed in Davis, it is necessary to identify and describe with precision the impairment to which a prospective participant's disability is attributable, because the access criteria contained in ss 24(1)(b) to (d) require evaluation of the permanency and impact of that impairment on the prospective participant's functional capacity and social and economic participation.
Using the concept of impairment enables assessment of the severity and permanency of a person's condition, and of the effects of that condition through not only the evidence of an applicant, but also medical and clinical evidence. The legislative scheme contemplates a relatively high degree of precision by decision-makers (see, for example, the six activities in s 24(1)(c)) in assessing what a person can or cannot do. The assessment to be undertaken is avowedly functional, and multi-faceted.
Does the Applicant have a disability attributable to impairment? - s24(1)(a)
Are the psychosocial impairments permanent? - s 24(1)(b)
a) Are there any known, available and appropriate evidence-based medical or other treatments that would be likely to remedy the impairments? and > > b) Do any of the Applicant's impairments require medical treatment or review before a determination can be made about whether the impairments are permanent or likely to be permanent?
In my opinion, the correct meaning of "permanent" in s 24(1)(b) is "enduring". This meaning reflects the purpose and context of the legislative scheme, as a scheme intended to deliver lifelong support to persons with disability.
The critical point is that "permanent" is used as an adjective in s 24(1) to the noun "impairment" (or in the plural, "impairments"). The focus of the text, consistently with the purposes of the scheme, is on whether the impairments experienced by individuals (rather than the cause of the impairments or the specific diagnoses which might be applied to a medical condition) have an enduring quality so as to fit within the conceptual emphasis of the scheme.
The concept of "irreversible" is unhelpful, and a distraction from the context and purpose of the legislation. It prompts the question - 'reversible by what?' That is, how far does an (sic) NDIS applicant need to go to attempt to 'reverse' their impairment? And what does 'reversible' mean? Is it a question of degree? Fifty percent reversible? Thirty percent reversible? Does irreversible mean 'cannot be improved'? Of course, many impairments covered by the NDIS - such as psychiatric impairments - can be 'improved' (in terms of the way an individual experiences the impairment) by therapy and medication. Are they 'reversed' if the medication is very successful? Obviously, the answer is they are not. The impairment remains, but the symptoms or manifestations may be controlled or somewhat ameliorated.
Do the Applicant's impairments result in substantially reduced functional capacity?
Communicating - how you speak, write, or use sign language and gestures, to express yourself compared to other people your age. We also look at how well you understand people, and how others understand you.
Socialising - how you make and keep friends, or interact with the community, ... We also look at your behaviour, and how you cope with feelings and emotions in social situations.
Learning - how you learn, understand and remember new things, and practise and use new skills.
Mobility, or moving around - how easily you move around your home and community, and how you get in and out of bed or a chair. We consider how you get out and about and use your arms or legs.
Self-care - personal care, hygiene, grooming, eating and drinking, and health. We consider how you get dressed, shower or bathe, eat or go to the toilet.
Self-management (if older than 6) - how you organise your life. We consider how you plan, make decisions, and look after yourself. This might include day to day tasks at home, how you solve problems, or manage your money. We consider your mental or cognitive ability to manage your life, not your physical ability to do these tasks.
Applying these principles, it is to be recognised that s 24(1)(c) is a component of a statutory test, the overall purpose of which is to determine if a prospective participant meets the requirements for access to the NDIS. In this regard, it is an express object of the NDIS Act to "facilitate the development of a nationally consistent approach to access to ... supports for people with disability." In my opinion, fulfilment of this purpose requires that the test operate normatively rather than arbitrarily. It can only do so if the tasks that fall within each activity area for the purposes of s 24(1)(c) are designated and determinate rather than infinitely variate and elastic.
Due to his mental health conditions, he demonstrates difficulty in expressing his emotional needs or articulating more specific feelings, especially in times of distress. While he generally communicates effectively, his tone of voice tends to be monotone, and he often lacks eye contact, which reduces the clarity and emotional depth of his communication. These limitations are more pronounced when he is under stress or trying to explain complex emotional needs. However, in everyday situations, he is generally able to communicate his basic needs independently and clearly.[42]
...demonstrated the ability to listen, comprehend and respond appropriately to questions. However, his communication style was characterised by limited eye contact and a monotone voice. Despite this, he was able to engage in the conversation and convey his thoughts clearly.[43]
... identified two main friends with whom he maintained regular social interactions. One of these friends is someone he works on cars with, while the other is a long-standing friend from his school days. They stay in regular contact, primarily through text messages, and make an effort to catch up in person once or twice a week. These connections appear to provide him with consistent social support and engagement.[51]
... Currently moves around independently, both within his home and the community. He is able to navigate his environment without assistance, using public transport or ride-share services such as Uber when needed. He walks to local shops weekly and enjoys going for walks around the block. There are no reported issues with his general mobility, and it does not require assistance for day movement or transportation. In my opinion, he is fully independent in this area.
...usually results in an impaired ability to organise and manage daily routines. Furthermore, this condition is often characterised by fluctuating moods, psychotic symptoms and cognitive difficulties, severely affecting one's capacity to maintain a consistent schedule. Symptoms such as disorganised thinking, hallucinations and mood instability make it extremely challenging for a person with this condition to plan, prioritise and complete essential daily tasks, such as personal care, household chores and attending appointments. Furthermore, it is likely that [the Applicant] will have ongoing issues managing his finances. Unfortunately, without support in this matter, there is a strong possibility that his ongoing financial security will be compromised...Things like daily planning and goal orientation require a significant amount of mental organisation that translates into motivation, which is clearly something that [the Applicant] is still struggling with. In some cases, the fear of mental health relapse becomes a daily barrier preventing a person diagnosed with a serious mental health condition from being goal orientated. Or it could be that the ongoing disruptions to their executive functions impact daily planning despite being medicated. In [the Applicant's] case, I suspect that it is a combination of both factors. I would also suggest that these factors have created deficits in his self-concept and identity, further disrupting his motivation towards achieving important goals. It probably helps to explain why [the Applicant's] days are somewhat chaotic and why he is drawn to instant gratification as a means of both managing anxiety and boredom (emphasis added).[65]
...can impact his ability to manage tasks consistently, especially when symptoms are more pronounced. For instance, during episodes of delusions or hallucinations related to his schizophrenia, his focus and decision-making ability may be impaired, making it more difficult for him to manage his affairs effectively. Similarly, his anxiety and depression can lead to low motivation, forgetfulness, or difficulty in organising tasks, which may affect his ability to manage routine activities such as maintaining a schedule or managing finances. However, these challenges are not constant, and he can function independently when his symptoms are less severe.
............................[SGD]......................................
Representative for the Applicant: Ms Zena Dyson - Esteem Care Services
Solicitors for the Respondent: Moray & Agnew Lawyers
[6] The NDIS also provides time limited early intervention to persons with disability who experience intellectual, cognitive, neurological, or physical impairments or impairments to which a psychosocial disability is attributable, all which are permanent or likely to be permanent, who will benefit from such support in specified ways. Again, this is a limited subcategory of the total population of persons with disability Australia.
[8] National Disability Insurance Agency v Davis (Davis) [2022] FCA 1002 at [82]
[9] Drake and Minister for Immigration and Ethnic Affairs (No. 2)(Drake) [1979] FCAFC 39 at [644]- [655].
[14] Shi v Migration Agent's Registration Authority [2008] HCA 31; (2008) 235 CLR 286 at [45]- [46].
[16] Beezley v Repatriation Commission [2015] FCAFC 165 at [68]; HPSC and National Disability Insurance Agency [2021] AATA 727 at [85].
[39] Madelaine and National Disability Insurance Agency [2020] AATA 4025 at [79].
[46] Nika and National Disability Insurance Agency [2021] AATA 2127 at [241].
[47] Ghezzaoui and National Disability Insurance Agency [2023] AATA 2835 at [79].
[48] Kilgallin and National Disability Insurance Agency [2017] AATA 186 at [19].
Beezley v Repatriation Commission [2015] FCAFC 165
Burrows and CEO, National Disability Insurance Agency (NDIS) (Burrows) [2025] ARTA 607
Drake and Minister for Immigration and Ethnic Affairs (No. 2)(Drake) [1979] FCAFC 39
Foster and National Disability Insurance Agency (NDIS) (Foster) [2025] ARTA 718
Ghezzaoui and National Disability Insurance Agency [2023] AATA 2835
HPSC and National Disability Insurance Agency [2021] AATA 727
Kilgallin and National Disability Insurance Agency [2017] AATA 186
Madelaine and National Disability Insurance Agency [2020] AATA 4025
Mulligan v National Disability Insurance Agency [2015] (Mulligan) [2015] FCA 544; (2015) 233 FCR 201
National Disability Insurance Agency v Davis (Davis) [2022] FCA 1002
National Disability Insurance Agency v Lampard [2025] FCAFC 139
National Disability Insurance Agency v Foster [2023] FCAFC 11; (2023) 295 FCR 521
Nika and National Disability Insurance Agency [2021] AATA 2127
Shi v Migration Agent's Registration Authority [2008] HCA 31; (2008) 235 CLR 286
(2023) 295 FCR 521
(2015) 233 FCR 201
(2008) 235 CLR 286