Labor’s proposed reform – changes to NDIS eligibility and the “Thriving Kids” program

Labor’s proposed reform – changes to NDIS eligibility and the “Thriving Kids” program

On Wednesday, Disability and NDIS Minister Mark Butler made several announcements on the future of the NDIS Scheme, aimed at moderating its future growth. It follows figures that show children, particularly those with autism, continue to make up a large proportion of NDIS participants. The proposed reforms will have profound effect for young children with Autism or developmental delays.

Why the change?

In short, it’s all about the numbers. Statistics show that approximately 70% of new NDIS participants have been children diagnosed with autism, many receiving an unusually high volume of therapy. The government asserts that the NDIS should prioritise those with significant, permanent disabilities, while children with support needs better addressed via mainstream systems should be supported elsewhere. Its all really about numbers, and rebalancing the NDIS’ Growth… the changes aim to reduce the NDIS’s annual growth rate—from currently unsustainable levels (~8%+)—to a more manageable 5–6%, aligning with recommendations from the Productivity Commission and budgetary targets.

So What’s Being Proposed?

Shifting Children with Mild to Moderate Needs to “Thriving Kids”

Children diagnosed with mild to moderate autism or developmental delays will no longer access support through the NDIS. Instead, they will transition into a newly established program called “Thriving Kids”. This program will be funded by federal and state governments with the commonwealth chipping in $2 billion, is the name given to the “foundational supports” model recommended by the 2023 NDIS Review.

Thriving Kids will be delivered through existing structures such as schools, GPs, and community services. It will involve integrated early childhood assessments within Medicare, to identify and support children early on through mainstream pathways. Minister Butler said that Thriving Kids will still be designed in consultation with the disability community. He announced that paediatrician and childhood development expert Frank Oberklaid will lead the consultation efforts. However, the Minister did list some initiatives that the government has already been considering, which includes a National version of the Inklings program which aims to help parents recognise and engage with their baby’s unique communication style amongst other suggestions.

Status of NDIS Participants During This Transition

Children already on the NDIS will continue to receive support but may face periodic reassessments to confirm ongoing eligibility under the updated criteria.

Implementation Timeline

The transition would begin from July 1, 2026, with a one-year handover period. During this handover, parents can choose whether they use the Thriving Kids program or the NDIS, before access and eligibility changes on 1 July, 2027.

If you’d like more information, Frank Chung at News.com.au has given a rundown of what was discussed at the National Press Club – click here for the news article or the full Ministers Speech can be found here.

As with all changes in this space – we are here to support. If you are feeling concerned about these changes, please reach out to your Support Coordinator directly or our caring admin team on 0418 700 533

“We can’t always change the hard – but we can change the alone” – One Tribe Australia



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