The $2bn Thriving Kids scheme, due to start on 1 July, would instead start in October, after states said they were not ready yet.
The Albanese government has offered to delay the start of a new program for early intervention autism services and provide budget top-ups for smaller states, part of efforts to secure an overdue deal on hospitals and disability funding.
Premiers and chief ministers look likely to agree to the deal at Friday’s meeting of national cabinet in Sydney, after Anthony Albanese and the health minister, Mark Butler, offered to push back the start of the new $2bn Thriving Kids scheme to October.
The new program had been due to start on 1 July, but state governments had warned they were not ready to take responsibility for foundational supports for young children and a delay was necessary.
Part of efforts to ease pressure on the rapidly growing budget for the national disability insurance scheme, the new program will provide services for children under eight years old who have developmental delays and other low to moderate needs.
Support services will be delivered through schools, health clinics and community facilities. Broader changes to NDIS access rules are due to come into effect from mid-2027.
It had been initially proposed that states and territories would develop their own foundational support programs for kids, but a lack of progress saw the federal government move to set up a new national scheme.
Among additional sweeteners being offered to secure the deal this week are budget funding “adjustments” to benefit smaller states, as they struggle with rising costs for health and hospital services.