Negotiations on changes to support for autistic children have hit a roadblock as a state premier declares federal Labor is shirking its responsibilities.
The Albanese government wants to move some children with autism and developmental delays off the National Disability Insurance Scheme to rein in spending and keep the scheme viable.
The Thriving Kids program would instead provide early intervention and support for the cohort through mainstream channels such as general practitioners and schools.
Health Minister Mark Butler's announcement in August surprised some state leaders and prompted concerns of inadequate consultation and uncertainty for families and children on the scheme.
A meeting of federal government and state and territory ministers to broach the topic was held on Friday, with a state government source reportedly describing it as a "complete disaster" after earlier threats of a boycott over speaking time.
Federal NDIS Minister Jenny McAllister said she was hopeful of striking a deal by the end of 2025 but it was a "complex agreement".
"Where we are up to at the moment is establishing what design would be useful for children," she told Sky News on Sunday.
The main sticking point is funding.
The Albanese government has promised $2 billion over five years but is continuing to push for state and territories to collectively match funding.
Thriving Kids is expected to be rolled out from July 2026 and be fully implemented by July 2027.
Ms McAllister refused to "speculate" on what would happen if the federal government couldn't come to an agreement and flagged further moves this week as part of a NDIS compliance crack down.
"This scheme has to operate with integrity," she said.
The Albanese government is simultaneously trying to broker a five-year public hospital funding agreement with states and territories.
Queensland Premier David Crisafulli has accused federal Labor of playing a "cruel game" as his state grapples with what he described as a "health crisis'.
Mr Butler promised to cover 42.5 per cent of public hospital running costs by 2030 and 45 per cent by 2035, in a deal struck in late 2023.
Mr Butler promised to cover 42.5 per cent of public hospital running costs by 2030 and 45 per cent by 2035, in a deal struck in late 2023.
State and territory leaders claim the share of federal funding would be closer to 35 per cent under the federal government's most recent offer.
"But most troublingly, it's a deal that abrogates the federal government's responsibilities," Mr Crisafulli told the state Liberal National Party congress on Sunday.
"An offer that will lead hundreds of long-stay patients, aged care and younger NDIS patients, and they're both responsibilities of Canberra ... stranded in Queensland hospitals."
Mr Butler and Treasurer Jim Chalmers have both previously linked the hospital funding negotiations to support for Thriving Kids.
The cost of the NDIS has been predicted to surge to $50 billion by 2025/26, higher than the annual Medicare bill.
Labor is seeking to bring down growth of the scheme to between five and six per cent a year.
