The Australian federal government is pushing to implement the Thriving Kids scheme by mid-2024, a new initiative aimed at supporting children’s early development. The federal government has put forward a huge downpayment of $2 billion to back up this ambitious plan. This money is only provided as a match to the states. The initiative’s success hinges on the collaboration between federal and state governments, yet skepticism has emerged from several state leaders regarding the proposal’s viability.
In a recent speech to the National Press Club, Mark Butler, Minister for Health and Aged Care, railed against the Thriving Kids initiative. He highlighted that state participation in its funding is key to its success. He indicated optimism that states would get on board with the vision and direction of the federal government for what should be a pivotal and critical program. “I expect states to match Thriving Kids funding,” Butler stated, urging cooperation to ensure that children receive the necessary support for their development.
Concerns from State Leaders
Despite the federal government’s excitement, state leaders have clearly expressed worry over the Thriving Kids plan. Victorian Premier Jacinta Allan was quickly on the backfoot, stating she didn’t believe it. She warned that families have a lot of questions about how this scheme would work and how it would affect current support systems. Allan’s hesitance is a symptom of bigger fears, both about whether the proposed funding is adequate and a general lack of clarity about the initiative.
New South Wales Premier Chris Minns shared such sentiments. He was clear that he did not intend to give the program a “blank cheque.” In his letter, he highlighted the importance of transparency and robust planning before making any financial commitments. “I will not commit to Thriving Kids sight unseen,” Minns declared, highlighting the importance of thorough examination and consideration of the program’s implications.
The Interconnectedness of Funding Deals
Here’s why the federal government should consider the Thriving Kids initiative to be essential. It’s designed to reduce the rate of growth of National Disability Insurance Scheme (NDIS) spending to no more than 8 percent a year by mid-2026. This big-picture aim depends, in large part, on the rapid implementation of Thriving Kids reforms. In a speech to launch the fund, Treasurer Jim Chalmers commended the complex symbiosis between these funding crusades, proclaiming them to be “intertwined.”
He said they’re still in talks about the best way to implement both agreements at the same time. “There are billions and billions of dollars tied up in them, so we have been trying to progress both of those deals at once for good reason, because there are swings and roundabouts for both of us,” said Chalmers. His comments reveal an impressive knowledge of the subtle dynamics at play here. They’re key to gaining state alignment and cooperation with the new Thriving Kids initiative.
Next Steps in Implementation
While state leaders increasingly copy and start to narrow the proposed Thriving Kids funding, the federal government should double down on moving that conversation forward. With a target date of mid-2024, time is short. Making sure that states are sufficiently educated and comfortable with this new endeavor will be key to making it a successful program.
The result of these negotiations will determine the extent to which 1.2 million Australian families benefit from affordable, accessible, quality early learning. The potential benefits of the Thriving Kids scheme depend on the ability and willingness of federal and state governments to work positively together. If successful, it could provide essential support for children’s early development while addressing long-term sustainability within the NDIS framework.
