State and territory leaders have agreed to help rein in the costs of the National Disability Insurance Scheme, but a key early intervention program has been delayed by several months.
National cabinet agreed to limit annual growth of the NDIS to six per cent per year, in exchange for securing an extra $25 billion for public hospital funding over the next five years from the Commonwealth.
However, a program to move children with mild to moderate levels of autism off the NDIS and into state-based programs has been delayed by several months to give jurisdictions more time to adjust to changes.
The $2 billion Thriving Kids program was due to begin in July, but will now begin from October.
Prime Minister Anthony Albanese said Thriving Kids would be fully implemented by the start of 2028.
"The states put to us the possibility of a short delay in the full implementation of Thriving Kids," he said in Sydney on Friday.
"We agreed that proposal was reasonable, that we get this right, and so, it is a positive move."
State leaders had previously said they were blindsided by NDIS Minister Mark Butler's announcement of the Thriving Kids scheme in 2025 during a speech at the National Press Club.
Opposition health spokeswoman Anne Ruston said the delay to Thriving Kids was concerning.
"Young Australians living with a disability and their families remain in ongoing uncertainty due to the complete lack of clarity and detail around the new Thriving Kids program," she said.
ACT Chief Minister Andrew Barr said jurisdictions would increase their share of contributions for the NDIS over the next five years.
"Two billion dollars will be matched to deliver Thriving Kids as the first phase of foundational supports, with the Commonwealth providing $1.4 billion of its contribution to support states," he said.
"The ACT, along with all jurisdictions, is committed to improving the health outcomes for all Australians and putting the NDIS on a sustainable pathway."
