States push back on NDIS changes as funding fight heats up
States are pushing back on the federal government’s new Thriving Kids program, warning they won’t sign up to NDIS changes without better hospital funding. Advocates say families need clarity to ensure children don’t lose essential supports.
A major funding standoff is emerging between the federal government and the states over the future of the National Disability Insurance Scheme (NDIS) and hospital care.
NSW Premier Chris Minns has warned the Albanese government it will be in for a “rude shock” if it expects states to agree to new NDIS reforms without a bigger deal on hospital funding.
What is changing with the NDIS?
The federal government has announced a new Thriving Kids program. This will see many children with mild to moderate developmental delays and autism supported through mainstream services such as health clinics, playgroups and schools, rather than entering the NDIS.
Canberra has pledged $2 billion to help start the program and wants states and territories to match the funding. The aim is to reduce pressure on the NDIS, which has grown rapidly and now costs more than $50 billion a year.
Why are states worried?
Speaking on Sky News Sunday Agenda, Premier Minns said New South Wales would not be pressured into signing what he called a “blank cheque”. He argued that the federal government has not delivered on past promises to fund 45 per cent of hospital costs, leaving emergency departments struggling.
He also raised concerns about people stuck in hospitals because they cannot access aged care or disability supports. “We’ve got a lot of aged care patients in our hospitals that could be discharged this afternoon, but there’s nowhere for them to go,” Minns said.
Other premiers, including Victoria’s Jacinta Allan, have also said they were not properly consulted on the new children’s program. Disability advocates warn that families may be left without the support they need if state systems are not ready to take on the extra responsibility.
What happens next?
The federal government wants NDIS spending growth reduced to 4–5 per cent by 2029, down from 24 per cent over recent years. Programs like Thriving Kids are central to this plan.
But with states demanding better hospital funding before signing up, negotiations are expected to be tough. Families and people with disability will be watching closely to see how services are funded and delivered across both the NDIS and mainstream supports.
For now, the future of the Thriving Kids program – and what it means for children entering the NDIS – depends on whether governments can strike a deal that balances both disability and hospital funding needs.