What the $2 Billion Shake-Up Actually Means for Your Family

If you are a parent of a young child with developmental delays, the headlines lately have been… a lot.

Between talk of “sustainability,” “crackdowns,” and “exits,” it is easy to feel like your child is just a line item on a budget spreadsheet.

Recently, the Federal Government announced a massive $2 billion investment called the Thriving Kids program. On paper, it sounds like a positive step for early intervention. But for families already navigating the NDIS maze, it raises a big, scary question: “Does this mean my child gets kicked off the scheme?”

Let’s take a deep breath and unpack what we actually know (and what we don’t) about the changes coming in 2026.

Why the System is Changing

When the NDIS started, nobody predicted how many children would need it.

Today, around one in five Australian children experience developmental delays. Because state-based services (like school support and community health) shrank when the NDIS arrived, the NDIS became the only lifeboat available.

This created a massive bottleneck. Children who need a little bit of speech therapy are now stuck in the same complex system as children with high-needs, lifelong disabilities.

• The “Thriving Kids” Plan: The government wants to build a new support system outside the NDIS for children with lower-level needs.

• The Goal: To make sure children get help quickly through schools and community centres, without needing a full NDIS plan.

• The Timeline: It launches on 1 July 2026, with NDIS eligibility rules tightening from mid-2027.

The Anxiety: Children Leaving the NDIS

We know that “future reforms” are small comfort if you are worried about your child today.

You might have seen the reporting by Rick Morton in The Saturday Paper about the NDIA ramping up reassessments. The report highlighted that thousands of families received “exit letters,” often with very little warning.

These letters can be devastating. They often claim a child has “achieved their goals,” even when their therapists (and parents) know they still need support.

Here is the reality: If your child entered the scheme under “Developmental Delay” (rather than a permanent diagnosis), the NDIA will likely reassess them when they turn six. This has always been the rule, but they are enforcing it much strictly now.

What This Means for You

If you are already in the NDIS: Don’t panic, but be prepared. If your child is approaching school age (6-7), a review is likely coming.

• Our Tip: Start gathering evidence now. You need reports from your therapists that clearly show the functional impact of your child’s disability, not just their diagnosis.

If you are applying soon: The “In and Out” doors are changing. By 2027, the government wants fewer children entering the NDIS and more children using “Foundational Supports” (mainstream health and education).

The problem? Those mainstream supports aren’t fully ready yet. That is the gap we are all watching closely.

The Unknowns (And Why We Are Watching)

We will be honest—there are still big questions that need answers:

• Will “Thriving Kids” offer enough therapy hours to actually make a difference?

• How will they ensure children don’t fall through the cracks during the transition?

• Will there be anyone to help you coordinate these new services?

Organisations like the Australian Federation of Disability Organisations (AFDO) are fighting hard to ensure no child loses support before the new systems are ready. They are pushing for a “safety net,” and we are right there with them.

We Are Here to Help

At CoAbility, we don’t just read the legislation; we support the families living through it.

If you receive an eligibility reassessment letter or if you are just lying awake at night worrying about your child’s plan, please reach out. You don’t have to decipher these changes alone.

👉 Contact us today on 1800 262 245 to speak with a team that gets it.