In a major shift to how childhood developmental support is delivered in Australia, the federal government has announced plans to divert hundreds of thousands of children with mild to moderate autism or learning difficulties away from the National Disability Insurance Scheme (NDIS) and into a newly created support program.

The move, unveiled by Federal Health Minister Mark Butler at the National Press Club this week, comes amid growing concern about the scale — and sustainability — of the NDIS, a $46 billion program originally designed to support Australians with significant and permanent disabilities. Here's what you need to know.

Why are these changes happening?

According to Butler, the number of children with developmental conditions entering the NDIS has grown dramatically — far beyond original projections.

“One in every 10 six-year-olds is now on the NDIS,” Butler said. “In some regions, that figure is even higher.”

Much of this growth is being driven by autism diagnoses. New data reveals that of the 78,600 people who joined the NDIS between June 2024 and June 2025, over 70% (56,000) were diagnosed with autism as their primary condition. While this reflects broader awareness and early intervention efforts, Butler said the current setup is “not working” for families or the scheme itself.

“Parents are desperate to get their children accurately diagnosed — and too often they have to wait for ages and pay thousands just to get that diagnosis,” he said.

When will it happen?

The changes are set to launch by July 2027.

The new initiative is 'Thriving Kids' – so what is it exactly?

The government’s proposed solution is a new, standalone support program called Thriving Kids, set to launch by July 2027.

Described as a “robust, specialised program”, Thriving Kids will be geared toward children with mild autism, learning delays, or developmental challenges — those who may not meet the NDIS’s definition of a permanent and severe disability but still need support to thrive.

The initial government investment for Thriving Kids is $2 billion.

Crucially, children currently enrolled in the NDIS will not be removed. Those who join before the new program rolls out will also remain eligible, subject to standard reassessments.

Butler maintains that this is not about denying care, but rather delivering it more effectively. “This is what these children and their parents need,” he said. “It’s about restoring the NDIS to its original intent and building a better support system for all.”

What does this mean for families?

If you’re a parent of a child with a mild to moderate diagnosis, you might be wondering what this actually means for you — and your child’s support.

What we know so far is that nothing will change immediately. The transition won’t begin until Thriving Kids is fully operational in mid-2027.

Children currently on the NDIS will stay on the scheme. The new program is intended to be more tailored to early developmental needs, with services that are easier to access without jumping through the diagnostic hoops often required by the NDIS.

The goal is to make the NDIS more sustainable, while ensuring children still receive the help they need.