Understand the upcoming changes you can expect from the NDIS in the next year.
This year, the Federal Labor Government is set to implement the biggest overhaul to the NDIS since it was first introduced in 2013. After years of ballooning costs, these upcoming reforms could change the way the NDIS works for millions of Australians.
That’s why we’ve put together a simple-to-understand guide on the changes potentially coming to the NDIS in 2025 and beyond.
Introducing the “Thriving Kids” Program
Many of the changes under consideration are about trying to get a handle on spiralling costs while tamping down on growth. And nowhere is this clearer than the newly announced Thriving Kids program.
Much of the growth in the NDIS over the past few years has been a surge in the number of children with autism, representing as many as 70 per cent of all new NDIS patients. In fact, the most recent NDIS quarterly report shows 23 per cent of the program’s recipients were younger than nine and 40 per cent were primarily diagnosis with autism.
While many individuals face long-term autism related needs, there is also a large group of children with mild to moderate children who sought out the program due to a lack of other options, as many state and local programs have shut down over the years.
Child talking to psychologist. Photography by PeopleImages.com – Yuri A via Shutterstock
Instead, Thriving Kids will be a new program that aims to help children through mainstrem and community-based services.
- Program is specifically designed to support these children aged 0-8 with mild to moderate developmental delays and autism outside the NDIS.
- The Federal Government is pitching in $2 billion and is looking to get matching funding states and territories.
- Once introduced, there would be a gradual transition that would see new applicants placed in this program rather than the NDIS and offer more specialised care.
- There will be a phased implementation that starts in July 2026 and continue for another 12 months. There will also be broader changes to NDIS access for children expected in mid-2027, once the Thriving Kids program has been fully established.
Legislative Overhaul of the NDIS Act
Meanwhile, the NDIS Act 2013 has also been amended through the “Getting the NDIS Back on Track No. 1” legislation. As part of this reform, changes included:
- New early intervention pathways, allowing tailored support based on individual needs.
- Clarified eligibility criteria, helping participants understand how they qualify.
- Improved budget-setting mechanisms, including holistic needs assessments.
- A legislative claims and payments framework, to streamline how funds are accessed and used.
- Strengthened powers for the NDIS Quality and Safeguards Commission, enhancing oversight and compliance.
These reforms are designed to make the scheme more transparent, equitable, and easier to navigate for participants and providers alike.
When Do These Reforms Come into Effect?
These reforms are being rolled out in phases, with some already in effect since October 2024 and others starting in late 2025. As of writing, the Thriving Kids program is currently under heavy consultation between State and Federal Governments over funding, though the program is scheduled to begin rolling out on 1 July 2026. This would be a phased implementation that would continue over 12 months.
For an overview of Labor’s policy plans read more here. And is Labor increasing taxes on superannuation? Here is everything you need to know.
