Changes are coming to the NDIS

For the past few years, there have been major discussions around the National Disability Insurance Scheme (NDIS), who is accessing it and the growing cost to the government and taxpayers. 

The NDIS currently costs $46 billion (which is more than Medicare), supports just under 740,000 people and the latest NDIS quarterly report showed one in 10 children aged five to seven are on the scheme. 

Health Minister Mark Butler recently announced ‘Thriving Kids’, a new program that children with mild autism will be able to access, instead of relying on the NDIS. Our CEO, Dr Martin Laverty represented Aruma at the announcement. 

The changes you need to know about include: 

• A Foundational Supports program called “Thriving Kids” will commence in July 2026, providing evidence-based services to children with mild to moderate development delay or Autism. Aruma has discussed with Government becoming an early provider under this new “Thriving Kids” program and will seek to shape the design of the new national program. 

• NDIS eligibility changes for children with mild to moderate development delay or Autism will be introduced in July 2027, when alternate options through the “Thriving Kids” program are in place. 

• New three-year-old child health checks will be funded through Medicare, and Allied Health services such as Occupational Therapy and Speech Pathology will also be Medicare funded to support children with mild to moderate development delay or Autism. Aruma will look at becoming a Medicare funded provider of Allied Health services as part of the establishment of the “Thriving Kids” program. 

• A new pricing method for the NDIS will be established, shifting price decisions away from the National Disability Insurance Agency (NDIA) to an independent body.

Aruma has been calling for changes like this. It will help reduce the total cost of the NDIS to protect it for those who need it most. It will also provide alternate supports for children needing early diagnoses and support for mild to moderate conditions. 

It will take months for the detail of these changes to be finalised, and Aruma is part of a government advisory group that will help inform how these changes are implemented. 

You can click here to listen to Martin explaining the changes on ABC Radio. You can also click these links to read Aruma’s response to the changes reported in: 

• The Australian Financial Review 

• The Daily Telegraph 

• ABC Digital 

• The Australian 

FAQ – Changes proposed to the NDIS 

Mark Butler, the NDIS Minister, recently flagged some changes to part of the NDIS over the next two years.  

We have included some frequently asked questions (FAQs) below and will continue to keep you updated as we get more information. 

1. What are the proposed changes to the NDIS? 

Overall, the Minister said two key things need to change for the NDIS:   

• Return the scheme to its original purpose – the provision of support ‘to people with significant and permanent care and support needs’. 
• Ensure the scheme becomes sustainable from a Budget perspective. 

2. What are some of the details of these changes?  

The proposed changes include: 

• “Thriving Kids”, a new foundational supports program, will commence in July 2026, providing evidence-based services to children with mild to moderate development delay or Autism. Aruma has discussed with Government becoming an early provider under this new “Thriving Kids” program and will seek to shape the design of the new national program.  

• NDIS eligibility changes for children with mild to moderate development delay or Autism will be introduced in July 2027, when alternate options through the “Thriving Kids” program are in place.  

• New three-year-old child health checks will be funded through Medicare, and Allied Health services such as Occupational Therapy and Speech Pathology will also be Medicare funded to support children with mild to moderate development delay or Autism. Aruma will look at becoming a Medicare funded provider of Allied Health services as part of the establishment of the “Thriving Kids” program.  

• A new pricing method for the NDIS will be established, shifting price decisions away from the National Disability Insurance Agency (NDIA) to an independent body. 

3. Why are they being proposed? 

The NDIS was originally intended to support around 410,000 people with disability. The scheme now supports just under 740,000 and is projected to grow to a million by 2034.  

To make sure the NDIS can continue support people with significant and permanent care and support needs, the growth of the NDIS must slow down – the government is suggesting growth of around 5 to 6 per cent per year, rather than the 22 per cent growth that happened in 2022.
 
4. Who will oversee the changes?  

The federal government oversees any changes to the NDIS. It’s been proposed that state and territory governments administer the Thriving Kids programs. However, the details have yet to be worked out with the states and territories.  

Aruma is part of a government advisory group that will help inform how these changes are implemented.   

5. What’s the timeframe?  

It will take months for the detail of these changes to be finalised. 

We will keep you updated as the details are discussed and agreed with our federal and state government counterparts.   

6. What does this mean for children that currently get support from Aruma?  

There will be no immediate changes. It will take months for all the details to be finalised, and we will keep you informed as we learn more.  

7. What is Aruma’s point of view on the proposed changes?  

Broadly, Aruma supports the changes announced by the Minister – we have been calling for changes to the NDIS to make it more sustainable for some time.  

The changes will help reduce the total cost of the NDIS to protect it for those who need it most, but importantly, also provide alternate supports for children needing early diagnoses and support for mild to moderate conditions.