$2 Bn Program to Divert Children with Autism from NDIS

Industry Insights from Next Move Strategy Consulting

The federal government has announced a $2 billion initiative aimed at steering tens of thousands of children with mild to moderate developmental delays or autism away from the NDIS by mid-2027.

Butler Warns of NDIS Strain

In a Wednesday address to the National Press Council, Health Minister Mark Butler stated that many children had been enrolled in the NDIS—intended for permanent disabilities—and were receiving excessive services, putting pressure on the scheme’s financial sustainability.

NDIS Autism Enrollment Raises Concerns

Analysis published in Nine newspapers this week indicated that seven out of 10 new NDIS participants had autism as their primary diagnosis.

Health Minister Mark Butler emphasized that this was not the fault of parents, describing the NDIS as “the only port in the storm.” He explained, “They are desperate—absolutely desperate—to get their children diagnosed because we’ve made it the only way they can access support. The NDIS model simply does not meet their needs.”

Health Minister Mark Butler announced that the “Thriving Kids” program is scheduled to launch in July next year and will receive equal funding from the federal, state, and territory governments.

NDIS Access Changes and Growth Targets Under Review

Changes to NDIS access are set to begin from mid-2027, following the full rollout of the Thriving Kids program, with parallel efforts underway to establish a separate foundational support program for adults with severe and complex mental illness.

Health Minister Mark Butler described the current 8% growth target for the NDIS, agreed upon by the national cabinet for mid-2026, as “simply unsustainable” over the medium and long term. He suggested that the growth target could be reduced to 5 or 6% in the coming years, pending national cabinet approval.

Conclusion

The government’s $2 billion “Thriving Kids” initiative marks a pivotal shift in pediatric developmental care, aiming to provide early intervention and foundational supports outside the NDIS. By addressing mild to moderate developmental delays and autism through targeted pediatric pathways, policymakers hope to ease financial strain on the scheme while ensuring children receive timely, appropriate, and sustainable care tailored to their developmental needs.

Source: https://www.theguardian.com/

Prepared by: Next Move Strategy Consulting