Overview

• Federal minister Mark Butler confirmed Thriving Kids as a $2 billion program to move children with mild-to-moderate developmental delay or autism off the NDIS, with rollout from mid-2026 and full implementation by July 2027.
• NSW, Victoria, Queensland and WA figures said they were not properly briefed and raised funding concerns, while Butler rejected claims of blindsiding and said states have discussed the reforms for nearly two years.
• NSW leaders warned they would not pick up the bill or sign a blank cheque without detail, underscoring unresolved cost-sharing and delivery questions across schools, health and childcare systems.
• Ten major disability groups reported being surprised by the announcement and called for genuine co-design, warning the diversion could weaken access to evidence-based interventions for children.
• The government is exploring new Medicare pathways and an advisory group led by Professor Frank Oberklaid, as experts warn current rebates and session caps could leave families thousands out of pocket if therapies shift from NDIS funding.