Children with autism will be moved off the NDIS and into a new program after a surge in the number of young people on the scheme.
Disability Minister Mark Butler used a speech at the National Press Club on Wednesday to say the NDIS was not the right fit for children on the autism spectrum or with development delays.
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A separate program called Thriving Kids will instead be set up to focus on those children previously covered by the NDIS.
It will begin rolling out from July 2026 and be fully implemented by July 2027.
"I know this will be hard for some parents to hear, and I don't say it lightly," Mr Butler said in the speech.
"We need as a matter of some urgency to create a better system that will enable our children to thrive.
