The Australian government has announced a significant initiative to support children with autism and developmental delays, introducing the $2 billion “Thriving Kids” program. On March 13, 2024, Disability and NDIS Minister Mark Butler outlined this new approach aimed at easing the financial strain on the National Disability Insurance Scheme (NDIS), which is projected to exceed the defence budget in the coming years.
The NDIS, with a budget of $48 billion, has transformed the lives of many Australians living with disabilities. However, concerns about its financial sustainability have prompted this new direction. The “Thriving Kids” program will focus on children with mild to moderate developmental challenges, moving them away from the NDIS over time. The government plans to have the program operational by July 2025.
Mr. Butler emphasized that the initiative represents a “refocusing” of support services rather than a complete replacement of existing programs under the NDIS. He stated that changes to access and eligibility will be implemented as the program rolls out. Children currently enrolled in the NDIS will maintain their coverage under the existing framework.
The “Thriving Kids” initiative is part of a broader strategy to manage the growth of the NDIS, which has seen a significant increase in participants, particularly among children with autism. Recent figures show that approximately 11 percent of children aged five to seven are enrolled in the scheme, with about 40 percent of the NDIS’s 740,000 participants under the age of nine. The rise in numbers highlights the urgent need for tailored support systems for younger children.
In addition to launching the “Thriving Kids” program, Mr. Butler indicated that further reforms to the NDIS would be considered once growth targets are met. A new target of around 5 to 6 percent growth is being discussed, aligning more closely with forecasts for other sectors such as aged care and Medicare. The cooperation of state and territory governments will be crucial in establishing this new target.
Further reforms may include enhanced measures to combat fraud, improved pricing structures, and the establishment of a more rigorous evidence base for support services. Mr. Butler reiterated the government’s commitment to collaborating deeply with the disability community to ensure these changes meet the needs of participants effectively.
The government is also considering a new Medicare item for bulk-billed health checks for three-year-olds, aimed at identifying developmental concerns at an early stage. The aim is to provide essential support to families before challenges escalate.
The financial sustainability of the NDIS has become a pressing issue, with projections indicating it could surpass $64 billion by 2029. As it stands, the NDIS is now more costly than Medicare and is expected to continue its rapid growth unless significant reforms are enacted. Mr. Butler highlighted that the growth rate of the scheme, which was 10.8 percent in June 2023, has already decreased from around 20 percent at the start of the Albanese government in 2022.
The introduction of foundational supports for individuals with less profound disabilities is seen as a vital step towards making the NDIS more sustainable. Discussions around funding for these supports have faced delays, leading to uncertainties within the disability community. Participants and their families have expressed concerns regarding the continuity of their support services as negotiations continue.
As the government moves forward with these initiatives, there is a collective hope that the “Thriving Kids” program will provide necessary resources and support to children with developmental challenges, allowing for a more balanced and sustainable approach to disability services in Australia.
