Overview

• The plan would shift children with mild to moderate autism or developmental delay from individual NDIS packages into a mainstream program called Thriving Kids, with a staged start in July 2026 and full implementation by July 2027.
• Anthony Albanese called the move a difficult national‑interest decision, while Treasurer Jim Chalmers warned state hospital funding increases could be at risk if premiers do not support the changes.
• Funding arrangements remain unsettled, with reports describing a $2 billion federal pledge expected to be matched by states as well as separate reporting of a $4 billion allocation over five years, leaving negotiations open.
• Parents, advocates and some MPs warn of service gaps and a two‑tier outcome without assured alternatives, as Greens senator Jordon Steele‑John criticises the approach and Minister Mark Butler seeks to reassure families about the transition.
• Canberra says further savings and integrity measures are needed beyond the children’s program, flagging a psychosocial disability overhaul after 2027, as a Health Services Union survey highlights burnout and staffing shortfalls across the sector.