Disability Minister Mark Butler denies blindsiding states on NDIS reforms

The minister in charge of the NDIS has denied he did not consult state and territories about an overhaul of the scheme, despite some premiers saying they were blindsided by the decision.

Disability Minister Mark Butler unveiled changes to the NDIS that would see children with autism and developmental delays moved off the disability scheme and into a separate $2 billion program called Thriving Kids.

The move was touted as a way to ensure the future sustainability of the scheme, which is expected to cost the federal budget $52 billion in 2025/26.

State leaders like Victorian Premier Jacinta Allan said she was caught off guard about the decision, but Mr Butler said jurisdictions had been consulted about the change.

“We have been talking about this for two years,” he told Seven’s Sunrise program on Friday.

“The job for all of us is to get to work and start to build the system to help parents ensure their kids thrive. That’s what I’ve doing with the states, but also with the community and parents as well.”

Mr Butler said states and territories had urged for the federal government to ensure a consistent system for the NDIS going forward.

The minister has sought to reassure parents of children on the autism spectrum in the NDIS that they would not be left behind.

“This is going to roll out over the next couple of years. It’s going to take a while to design,” he said.

Thriving Kids will be rolled out from July 2026 and be fully implemented by July 2027.

But the Australian Association of Psychologists criticised the updated program, saying it threatened evidence-based intervention for children with autism.

The peak body’s chief psychologist Amanda Curran said the proposal had not been developed with meaningful consultation.

“Autism is a permanent neurodevelopmental condition that people do not grow out of, to suggest that it doesn’t meet the permanent disability criteria contradicts decades of clinical understanding and lived experience,” she said.

“Children with autism and developmental delays deserve the same access to evidence-based psychology services as any other child with a disability.”

The Australian Autism Alliance said there were still concerns with how the overhaul of the NDIS would impact children already on the scheme.

“The current framing and proposed diversion of children with ‘mild to moderate developmental delay or autism’ away from the NDIS raises serious questions,” the alliance said in a statement.

“With no consultation to date, families are left facing uncertainty and fearing they may be handballed between fragmented systems at critical points in their children’s lives.”