Society

Albanese Government Launches Thriving Kids initiative to replace NDIS for children with mild autism

Thriving Kids Initiative created to reduce strain of autism on NDIS budget, critics emphasise that child welfare is more important than growth targets.

Published

8 months ago

August 21, 2025

Chiara Reid

Public domain image by Lukas on Pexels.com

The Albanese government has announced a major reform to the National Disability Insurance Scheme (NDIS) through a new initiative called Thriving Kids. This initiative aims to support children with mild-to-moderate autism or developmental delay outside the NDIS. Set to launch on July 1, 2026, the program will include a one-year transition period that will allow families to choose between Thriving Kids and the NDIS before eligibility changes take effect in July 2027. Children already enrolled will remain on the scheme, subject to reassessment.

Thriving Kids is an initiative that responds to concerns that a surge in childhood autism diagnoses is stretching the reach of the NDIS, which was initially designed for people with what Health and Disability Minister Mark Butler describes as “significant and permanent disabilities” – an epithet which he feels does not apply to mild-to-moderate autism and development delay. Currently, one in ten six-year-olds is on the scheme, with 40% of all participants diagnosed with autism and 23% under age nine. Butler has emphasised that many families are turning to the NDIS because it is their only available option, even when their children’s needs may be better met through community-based support systems.

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Funded jointly by federal and state governments, with a $2 billion commitment from the Commonwealth, Thriving Kids will form part of the “foundational supports” model recommended by the 2023 NDIS Review. It will involve services delivered through GPs, schools, childcare centres, and a national online portal. The goal is to provide more appropriate support while easing pressure on the NDIS budget, which reached $46.3 billion last year and is growing at 10% annually. It had previously been projected to reach $105 billion by the early 2030s.

Autism Awareness Australia CEO Nicole Rogerson has acknowledged the need for reform, but warned that families are anxious about losing access to essential services. She urges the government to show leadership and clarify the new system’s design, and highlights that moderate to severe cases of autism “will need to remain in the NDIS because they do have a significant and lifelong disability.” She also expressed concern about the government’s growth targets, fearing that the focus on reigning in the overinflated NDIS budget might lead to cutting off families who depend on the support it offers, and George Taleporos, chairman of Every Australian Counts, echoed her concerns.

“Taking children out of the scheme without making sure there is something better in place would risk leaving families high and dry. We cannot repeat the failures of mainstream systems that forced families to turn to the NDIS in the first place,” -Taleporos

Disability advocates continue to stress that outcomes for children must remain the central focus. As these reforms unfold, the measure of success will be whether families feel supported, not sidelined, by the new system.