NDIS Announcement: What NDIS Participants and Providers Need to Know

Minister Mark Butler delivered a major announcement at the National Press Club on August 20, 2025, outlining significant reforms to the National Disability Insurance Scheme. The changes aim to restore the NDIS to its original purpose while ensuring long-term sustainability through the introduction of the Thriving Kids program.

Overview of the NDIS Announcement

The government has committed $2 billion to establish Thriving Kids, a new national program designed to support children under 9 with mild to moderate developmental delays and autism. This initiative represents a fundamental shift in how early childhood support is delivered, moving away from individualised NDIS plans to mainstream, community-based services.

Starting July 1, 2026, Thriving Kids will begin rolling out across Australia, with full implementation expected over 12 months. From mid-2027, access and eligibility changes will redirect children with mild to moderate needs away from the NDIS and into this new system.

Key Statistics Driving the Changes

The announcement highlighted alarming growth figures:

• 1 in 10 six-year-olds are currently on the NDIS, including 16% of six-year-old boys

• Children with autism and developmental delays make up 53% of all NDIS participants

• Almost half of NDIS participants are children under 15

The NDIS was originally projected to support 410,000 people but now serves nearly 740,000 participants, with costs growing from an initial estimate of $13.6 billion annually to a projected $64 billion by 2029.

Key Impacts for NDIS Participants

Current Participants' Rights

Children already on the NDIS will not be automatically removed from the scheme. These participants will remain subject to the NDIS's usual arrangements, including regular plan reassessments. This provides crucial protection for families who have built their support systems around current NDIS funding.

The government has committed to ensuring no gaps in service delivery. Minister Butler stated: "I'm very clear, we're not going to leave a gap between two stools for our precious children".

Transition Protections

Grandfathering provisions will protect current participants during the transition period. Your existing plan remains valid until your next scheduled review, and any supports deemed "reasonable and necessary" under current arrangements will continue.

Future Access Requirements

From mid-2027, new applicants with mild to moderate developmental delays or autism will be directed to Thriving Kids rather than the NDIS. The changes will use functional impairment assessments rather than diagnosis alone to determine eligibility.

Reassessment Procedures

The NDIA is currently conducting approximately 1,200 eligibility reassessments weekly, with around 48% resulting in participants losing NDIS eligibility. Recent reforms have extended the response timeframe from 28 days to 90 days, giving participants more time to gather supporting evidence.

Key Impacts for Carers and Guardians

Support During Transition

Carers and guardians will need to navigate the co-design process for Thriving Kids over the coming months. The program will leverage existing systems that families already use, including:

• Child and maternal health services

• GP appointments and early learning centres

• Community centres and schools

• Supported playgroups and family support networks

New Medicare Items

The government will introduce new Medicare items to support the transition:

Bulk-billed 3-year-old development checks to identify concerns early

Allied health services including:

• Occupational therapy for play skills and motor development

• Speech pathology for communication support

• Psychosocial therapy for social skills and emotional regulation

Information and Navigation Support

A nationally consistent online information service similar to 1800MEDICARE will be created to help parents access trusted, evidence-based guidance on child development and available supports.

Key Impacts for NDIS Registered Providers

Market Regulation Changes

The announcement emphasised strengthening provider oversight, with only 16,000 of the 260,000 NDIS service providers currently registered. This means 15 out of 16 providers operate without registration requirements.

Mandatory Registration Expansion

Following recent consultations, mandatory registration will be introduced for:

• Supported Independent Living (SIL) providers

• Support coordination services

• Platform providers

These changes aim to improve quality and safety standards while reducing fraud and sharp practice.

Service Delivery Changes

Providers working with children may need to adapt their service models as the Thriving Kids program emphasises:

Integrated service delivery through existing mainstream systems rather than individualised therapy sessions

Evidence-based interventions with greater scrutiny of therapeutic approaches, particularly addressing the current average of 70+ therapy sessions per year for young participants

Collaborative approaches working within early learning centres, schools, and community settings

Fraud Prevention Measures

The government has invested more than $500 million in fraud prevention, launching over 600 investigations and executing 65 search warrants. Providers can expect continued focus on compliance and integrity measures.

Looking Ahead

Implementation Timeline

July 2026: Thriving Kids program begins rolling out Mid-2027: Full implementation complete; NDIS access changes take effect Ongoing: Co-design process with disability community, providers, and families

Co-Design Process

Professor Frank Oberklaid AM will co-chair the design process with Minister Butler, working directly with:

• Parents and families

• Service providers

• State and territory governments

• The NDIS Reform Advisory Committee

Sustainability Measures

The government aims to reduce NDIS growth from the current 8% annually to 4-5%, aligning with Productivity Commission recommendations. This longer-term target will require additional reforms beyond Thriving Kids.

Evidence-Based Approach

Future NDIS supports will require stronger evidence bases, similar to Medicare's rigorous assessment processes. This includes evaluating the effectiveness of therapeutic interventions and ensuring taxpayer investment delivers measurable outcomes.

The Thriving Kids program represents the most significant change to NDIS early childhood support since the scheme's inception. While protecting current participants, these reforms aim to create a more sustainable and effective system that better serves children, families, and the broader disability community.

For the latest updates and detailed information about these changes, participants and providers should monitor official government communications and engage in the co-design process as it unfolds over the coming months.