Opposition Slams Government Over Unilateral NDIS Reform Announcement

Aug 20, 2025

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The Coalition accused the Albanese government Thursday of creating widespread uncertainty among families by announcing a $2 billion disability program overhaul without consulting states, territories or affected families beforehand.

Shadow Health Minister Anne Ruston said the government's "thriving kids" program announcement left parents stressed and uncertain about their children's future support, while revealing states and territories learned about the policy through media reports.

"I think this morning, there are probably very many parents who will be feeling the stress about the uncertainty that yesterday has created for them because there was, whilst there was a lot of headline in yesterday, there wasn't a lot of detail about how this will impact parents going forward," Ruston told ABC Radio National Breakfast.

The program aims to move children with mild to moderate developmental delays and some autism diagnoses out of the National Disability Insurance Scheme into a separate support system, representing one of the most significant NDIS reforms since the scheme's inception.

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Health Minister Mark Butler announced Wednesday the program would help halve NDIS growth rates while providing $2 billion in dedicated support for affected children through state and territory governments.

However, Ruston said the announcement appeared to catch key stakeholders off guard.

"I must say I was somewhat surprised that it appears it's the first time that states and territories who will be the ones that have to implement this heard about it," she said. "We saw the response from the states and territories and other stakeholders about how this was the first time that they'd heard about this."

The Shadow Minister criticized the government's consultation approach, saying affected families deserved better communication about changes to their support systems.

"I suppose yesterday provided, I think, many more questions than it probably did provide answers," Ruston said. "The government really does need to come out very soon and perhaps explain a little bit more about what this actually means more generally."

The reform creates uncertainty about the status of previously announced "foundational supports" designed to provide early intervention services outside the NDIS framework.

"The status of those foundational supports seems to be thrown into some uncertainty as a result of what this new Thriving Kids program means in relation to foundational supports," Ruston said.

The Coalition has long supported NDIS sustainability measures but questioned the government's implementation approach for such complex reforms.

"We support making sure that our NDIS is here for future generations," Ruston said. "This is a scheme that we've always supported. It's always had bipartisan support because we see how important it is for people who live with disability in our nation to be able to have these sorts of supports."

However, she emphasized the need for proper consultation before implementing major changes.

"Without knowing the details of what Mark Butler is proposing, without knowing how he's intending to implement this, it is very, very difficult to be specific about the specific initiatives," Ruston said.

The government has set an ambitious July 2026 implementation timeline for the program, which Ruston questioned given the administration's delivery track record.

"This government's track record on the delivery on its promises is not particularly good," she said. "Its track record on consultation with the people that are impacted by it and the people who have to deliver it is not good."

Ruston called for comprehensive consultation with parents, disability organizations, states and territories, education experts and teachers before proceeding with implementation.

"If the government really is serious about getting this in place next year without all the problems that we've seen in some of the other areas that they've proposed with reform with their delivery, they need to get out and start talking to the people that it's impacting right now," she said.

The announcement comes as the NDIS faces mounting cost pressures, with Butler seeking to reduce growth rates from current levels to 8 percent annually, then further to 5-6 percent in subsequent years.

The NDIS currently supports approximately 650,000 Australians with disabilities, with costs rising rapidly as more participants join the scheme and existing participants receive increased support packages.

Ruston acknowledged the complexity of NDIS reform while emphasizing the human impact of policy changes.

"What Mark Butler talked about yesterday was to halve again the growth rate of the NDIS over and above the slowing of the growth rate that has already occurred," she said. "So we don't underestimate the massive task before us."

The Shadow Minister stressed that regardless of reform merits, implementation must prioritize participant certainty.

"In doing any of these reforms, first and foremost, you need to consider the people that are being impacted by these changes," Ruston said. "This morning, I am feeling, you know, my feeling goes to those people who are thrown into great uncertainty because they don't know what this actually means for them and their families and the children that they love who are needing supports at the moment."

The thriving kids program represents part of broader foundational supports negotiations between federal and state governments, though progress has been hampered by stalled National Health Reform Agreement talks.

"The National Health Reform Agreement, which was the basis on which these foundational supports were being negotiated the government failed to negotiate that last year we're now in a rolling additional year of the old agreement," Ruston said.

The Shadow Minister questioned whether states and territories were adequately developing foundational supports infrastructure while the government was removing participants from NDIS on the basis that alternative supports would be available.

"The government has started to remove people from the NDIS on the basis that the foundational supports program will be what will support them into the future, and yet we've seen very little in terms of those foundational supports be put in place," she said.

The controversy highlights ongoing tensions between federal and state governments over disability service responsibilities and funding arrangements, with implementation success dependent on cooperative federalism.

Opposition concerns reflect broader stakeholder anxiety about major NDIS changes affecting vulnerable families who rely on consistent support services for children with developmental needs.

The government faces pressure to provide detailed implementation plans while maintaining bipartisan support for NDIS sustainability measures essential to the scheme's long-term viability.

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