The New South Wales government has committed $631.9 million to establish a new support system for children with mild to moderate autism as part of broader reforms to the National Disability Insurance Scheme (NDIS). The initiative, known as Thriving Kids, aims to divert eligible children off the NDIS by enhancing foundational supports that predate the scheme, such as mainstream health and education services.
NSW Treasurer Daniel Mookhey indicated that while the state welcomes the funding partnership with the federal government, it may seek additional commonwealth financial contributions as disability reform efforts progress. “As the federal government’s policy evolves, we also expect to evolve our conversations with them about their financial contributions,” he said ahead of the state’s 2023-24 budget, which was handed down on Tuesday.
The Thriving Kids program reflects a $10 billion national agreement reached by federal and state governments in 2023, aiming to jointly fund foundational disability supports on a 50-50 basis. Federal NDIS Minister Mark Butler previously allocated $4 billion toward programs specifically targeting children with developmental delays, including those with mild to moderate autism, following a sharp increase in diagnoses within the scheme.
Treasurer Mookhey underscored that while current funding supports the rollout of foundational programs over the next five years, any expansion or introduction of additional supports by the commonwealth will require reassessment of fiscal commitments by NSW. “Other forms of foundational support proposed by the commonwealth will need to be tested against the commonwealth’s funding as well,” he said.
The budget also features significant measures to manage the state’s growing debt, projected to reach $178.5 billion this year. To address refinancing challenges amid global shifts in government debt pricing, the NSW government has authorized its financial branch, TCorp, to issue debt in foreign currencies to foster competition with domestic lenders. Glenn Stevens, former Reserve Bank of Australia governor and current chairman of Macquarie Group, has been appointed as TCorp chair to oversee the state’s entry into international debt markets.
Confronting economic headwinds such as the Iran conflict and rising interest rates, Mookhey acknowledged ongoing fiscal pressures that could delay NSW’s anticipated return to surplus, originally forecast for 2027-28. The Treasurer noted that recent years have seen slower-than-expected revenue growth, tempering optimism around budgetary targets.
Additional budget details included measures to support the Tomago aluminium smelter’s continued operation, with NSW committing resources despite declining a full 50-50 funding split sought by the federal government. Mookhey clarified that while the state intends to contribute, its financial capacity is constrained compared to the commonwealth’s.
NSW will also participate in the national gun buyback scheme, currently exclusive to the state following other jurisdictions’ withdrawal. Mookhey characterized the buyback as a bipartisan issue and urged other states to reconsider their positions.
The 2023-24 budget introduced no new taxes or changes to existing royalties and levies. The government has managed wage growth through productivity reforms and restructuring efforts, including adjustments to the state’s police death and disability insurance arrangements and the termination of the sovereign wealth fund. As the budget precedes a state election slated for March 2024, initiatives addressing cost-of-living pressures are expected to feature prominently.