Canberra: The Australian federal government will inject $2 billion into a new national programme designed to divert children with mild to moderate developmental delays or autism away from the National Disability Insurance Scheme (NDIS) by mid-2027.
Health Minister Mark Butler unveiled the initiative, known as the ‘Thriving Kids’ programme, during a speech at the National Press Council. Mark Butler said the scheme would provide earlier and more tailored interventions for children, addressing what he described as an over-reliance on the NDIS for support.
Butler stated that, “Many children have been placed on the NDIS, which was designed for permanent disability, and are being over-serviced, putting real strain on the scheme’s financial sustainability.”
Butler stressed that parents should not be blamed for turning to the scheme. Butler remarked that, “They are 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.”

The Thriving Kids program will begin in July next year and will be jointly funded by federal, state, and territory governments. Once the rollout is complete, access changes to the NDIS will take effect from mid-2027. In parallel, work is underway on a separate foundational support programme aimed at adults with severe and complex mental illness.
The minister also flagged the need to rein in the scheme’s growth rate. National cabinet has set an 8 percent growth target for the NDIS by mid-2026, but Butler warned this was ‘simply unsustainable’ in the long run. He proposed reducing the target to 5–6 percent in the coming years, pending national cabinet approval.

