No agreement between state and federal governments on NDIS reforms despite major commitments by Labor

Sky News AU

19 hours ago

State and federal governments have yet to agree on billions in funding for children with developmental delays and autism after major NDIS reform announcements by Health Minister Mark Butler.
Mr Butler declared that federal and state governments would jointly fund $2 billion for the Thriving Kids program in order to redirect children away from the costly NDIS.
However, no such agreement has yet been reached with the state and territory leaders in relation to foundational supports.
Finance Minister Katy Gallagher insisted on Thursday that states would be required to match the $2 billion contribution.
'That's the expectation. We made provision for that,' Ms Gallagher told ABC News when asked about funding details of the NDIS reform.
'We're not just outsourcing it to the states and saying you've got to deliver all of this. We are saying we want to be a player in that.
'It will be a mix and hopefully be building on existing services.'
However, state leaders have stopped short of endorsing the plan as NSW Premier Chris Minns said he would 'examine' the full details of the scheme.
'I think the idea from the Commonwealth government that you would have every jurisdiction have dissimilar enabling or support services for those on the NDIS is probably an unworkable scheme,' he said.
'I can't sign a blank cheque. I'm not going to commit sight unseen, but we will commit to working with the Commonwealth government to have a sustainable disability support program right across the country, and NSW, of course, will do its bit.'
Victorian Premier Jacinta Allan revealed on Thursday that she was caught off guard by the NDIS announcement.
'Like many states and territories, we heard about the proposed changes from the federal government when the minister made his address,' she said.
'There are many families, particularly many parents, today who have many questions and I hope that the federal government can move quickly to answer the questions that families are asking.'
Shadow NDIS Minister Anne Ruston told Sky News the announcement had left families and providers in limbo.
'He (Mr Butler) clearly hadn't spoken to the states and territories who have to deliver these supports. He hadn't spoken to his stakeholders,' she said.
'He hasn't spoken to the opposition, if he wanted bipartisan support. So I think yesterday presented us with more questions than answers.'
Mr Butler, who announced the changes earlier this week, called for the changes as the NDIS has strayed from its original purpose.
'Children with mild to moderate levels of developmental delay and autism should not, in my view, be on a scheme set up for permanent disability,' Mr Butler said on Wednesday.
According to new data, 56,000 of the 78,600 people who signed up to the NDIS in the 12 months to June 2025 listed autism as their primary diagnosis.
That figure accounted for 71 per cent of all new entrants, more than ten times higher than the next most common reason: developmental delay (5,553).
The exponential growth in participants has caused the scheme to grow by as much as 24 per cent between 2020 and 2024, with the government attempting to cut that down to 8 per cent.
The NDIS was originally expected to peak at 4 per cent annual growth when the scheme was launched in 2013.