The federal government has announced it will provide $2bn to fund a program designed to divert hundreds of thousands of children with mild to moderate developmental delays or autism from the NDIS by mid-2027.
In a speech to the National Press Council on Wednesday, the health minister, Mark Butler, said many children had been placed on the NDIS – which was designed for permanent disability – and were being “over-serviced”, putting strain on the scheme’s financial sustainability.
Analysis in Nine newspapers this week suggested seven out of 10 new participants in the NDIS had autism as their primary diagnosis.
Butler said it wasn’t parents’ fault as the NDIS was “the only port in the storm”.
“They are desperate – absolutely desperate – to get their children diagnosed because we’ve made it the only way they can get help … The NDIS model just doesn’t suit their needs,” he said.
The “Thriving Kids” program is set to roll out from July next year and will be equally funded by the states, territories and federal government, the minister said.
Access changes to the NDIS will begin from mid-2027 once the Thriving Kids program has been fully rolled out with work under way to deliver a separate foundational support program for adults with severe and complex mental illness.
Butler said the current 8% growth target for the NDIS by mid-2026 as agreed to by national cabinet was “simply unsustainable” in the medium and long term, proposing it could be lowered to 5 or 6% in the coming years with agreement by national cabinet.
More details soon …