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.
The announcement highlighted alarming growth figures:
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.
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".
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.
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.
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.
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:
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:
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.
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.
Following recent consultations, mandatory registration will be introduced for:
These changes aim to improve quality and safety standards while reducing fraud and sharp practice.
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
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.
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
Professor Frank Oberklaid AM will co-chair the design process with Minister Butler, working directly with:
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.
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.