Submission No 86

INQUIRY INTO FOUNDATIONAL AND DISABILITY SUPPORTS AVAILABLE FOR CHILDREN AND YOUNG PEOPLE IN NEW SOUTH WALES

Organisation: The Australian Association of Psychologists Inc Date Received: 10 September 2026

AAPi AUSTRALIAN ASSOCIATION of PSYCHOLOGISTS INC a true voice for psychology

Additional Feedback to the Select Committee on Foundational and Disability Supports Available for Children and Young People in NSW

September 2026

To the Committee,

The Australian Association of Psychologists Incorporated (AAPi) thanks the Select Committee on Foundational and Additional Supports Available for Children and Young People in New South Wales for the invitation to provide further input into their Inquiry.

AAPi is the leading not-for-profit peak body representing all psychologists in Australia. We advocate for increasing access and affordability of psychological services, so that all Australians can receive the support they need, when and where they need it. Almost a third of our members are based in New South Wales (NSW), and many practise in rural, regional and remote communities. AAPi is therefore strongly committed to supporting the mental health and well-being of NSW-based children and young people. In addition to the detailed information and recommendations already provided in our previous submission to the Select Committee¹, we wish to highlight the following:

New South Wales Government’s response to the Inquiry’s First Report:

While AAPi was disappointed by the New South Wales Government’s initial response to the Select Committee’s First Report (‘Report’), we welcome the opportunity to make a further submission focused on how the Report’s broader recommendations may be supported. AAPi is collaborating with other allied health, disability, and community sector organisations to promote sector-wide advocacy and call for genuine investment into foundational supports, including, but not limited to, Thriving Kids; improved access to early intervention services; and stronger recognition of the role that psychologists play in supporting children and young people. As governments continue to redesign disability and developmental support systems across Australia, AAPi is able to recommend integrated solutions that policy and decision-makers can implement to benefit both the children and families who need them and the professionals who can help deliver them.

In the sections below, we outline practical ways psychologists can assist the NSW Government and support the co-design, delivery, and evaluation of foundational and disability supports for young people, beginning with Thriving Kids. Each of the priorities highlighted below addresses why the matter is important, why the NSW Government should invest in it, and how psychologists can directly support it.

(1) Embedding the expertise of psychologists into implementing Thriving Kids:

AAPi is well-placed to support the NSW Government’s efforts to bring the Thriving Kids² program to scale, as a significant proportion of our members work with children aged 8 and under who have developmental delay and/or autism and low to moderate support needs, and their families. Psychologists support these children and their families across multiple settings, including community health and hospital services, schools, private and not-for-profit services, government-led programs, and multidisciplinary community-based models. Their expertise can thus contribute towards many elements

of the Thriving Kids model, including early identification, assessment and goal setting, parent and caregiver support, therapeutic intervention, diagnostic clarification, consultation with educators, program design, and outcome monitoring.

Psychologists are often the first point of contact for parents concerned about their child’s emotional and/or behavioural functioning and thus can support the early identification of developmental issues if connected to Thriving Kids intake processes. Accepting existing psychological assessments within Thriving Kids needs assessment processes can reduce duplication and expedite affordable access to appropriate supports. Psychologists can also inform the design and delivery of Universal Parenting Supports and Targeted Supports for families coping with developmental delay and/or neurodevelopmental challenges.

A recent survey of AAPi members who support vulnerable children and families, consistently highlighted the life-changing benefits of early, timely and individualised intervention, delivered by skilled practitioners, such as improved communication, emotional regulation, participation, school inclusion, family functioning and parental confidence. Yet access to these supports depends heavily on where families live; what they can afford; parental capacity and coping strategies, including navigating complex health systems; and whether appropriately qualified practitioners are available to provide the ongoing support they need.

The NSW Government can address these barriers by investing in enhancing the availability and capacity of local practitioners; reducing out-of-pocket costs and system complexity; and supporting families to reduce stress and/or burnout. Affordable and timely access to high-quality support via established therapeutic relationships will enable Thriving Kids to achieve its aim of protecting the health and wellbeing of NSW- based children, families, and local communities.

AAPi recommendations:

• Embed psychologists in the co-design and implementation of the Thriving Kids program across multiple NSW settings, including public and community health services, and schools.

• Allow psychology assessments (conducted in private, community and/or school settings) to inform Thriving Kids’ intake and needs assessment processes.

(2) Practical ways in which psychologists can contribute to Select Committee recommendations supported (directly or in-principle) by the NSW Government:

The NSW Government has supported the Report’s Recommendation 11 to establish and fund a dedicated prevention and early intervention investment framework for foundational supports, and Recommendation 12 to publish a map of the foundational

support system. They have also supported in-principle Recommendations 2, 5, 6, 7, and 8, which involve noting the evidence received by the Inquiry when developing and implementing foundational supports; funding a rural and remote access guarantee strategy and integrated co-location navigation model; partnering with Aboriginal Community Controlled Organisations (ACCOs); and embedding an equity and inclusion framework for culturally and linguistically diverse (CALD) families within foundational supports.

AAPi can assist the NSW Government in implementing these recommendations, as psychologists are uniquely qualified to design prevention and early identification pathways for foundational and disability support services. Their expertise spans developmental surveillance and screening, diagnostic assessment, formulation of individual needs, and the design of stepped-care entry points that can match support intensity to client needs, including their socio-economic circumstances and cultural diversity. Psychologists can translate clinical evidence into system design and help build the screening instruments, referral triggers, triage rules, and escalation pathways that determine whether children with developmental concerns, delays, differences, or disabilities are identified early and connected to the right support. Psychologists can also help to design assessment frameworks and outcome monitoring to enable the NSW Government to know whether prevention and early intervention investment is working, for whom, in which contexts, for example, across public and private health, community, and/or school settings, and at what point in a child’s development it can have the greatest effect.

AAPi calls on the NSW Government to develop a comprehensive investment framework that recognises early childhood as a critical period for development, laying the foundation for future health, learning and social wellbeing. The Australian Institute of Health and Welfare³ finds that timely, affordable, appropriate and effective prevention and early intervention services support better health and wellbeing and can reduce future care and support costs. Funding the right support at the right time is thus a precondition to fiscal sustainability.

When clinically indicated therapeutic and environmental supports and assistive technology are provided early, responsively, and affordably, particularly in community and school settings, they enable individual functioning to be maintained and/or improved, reducing the intensity and cost of supports required over a lifetime. Conversely, when identification is late, absent or unaffordable, needs can escalate into more expensive systems, such as acute ill-health, justice and child protection, and crisis-driven disability support. With changes proposed to the way early intervention supports are provided under the NDIS, psychologists can support the NSW Government in ensuring that services targeting child development are freely available in local communities, and that the school system has the capacity to assess and intervene when educational support needs are identified.

AAPi recommendations:

• Embed psychologists in the co-design of screening and referral pathways for foundational and disability supports, including universal developmental surveillance points located in health and education settings.

• Fund community-based and school-based psychological assessment capacity, so that support needs are identified early, rather than at a crisis point.

• Support our call⁴ for Commonwealth increases to Medicare rebates for psychologists to $150, making early identification and intervention financially accessible to families.

(3) Practical ways in which psychologists can contribute to Select Committee recommendations noted by the NSW Government:

The NSW Government has noted the Report’s Recommendation 10 to implement and evaluate co-designed place-based solutions, particularly in rural, remote, and disadvantaged areas, with shared accountability among local and other service providers, families, and community stakeholders. AAPi reiterates the need to co-design place-based solutions¹ which meet local needs, particularly in remote and rural areas. Australian Institute of Health and Welfare⁵ data finds that almost 27% of Australians live in these communities and have lower access to primary care and worse health outcomes, including higher hospitalisations and mortality. In regional and remote NSW⁶, children and youth living with disabilities have also been found to experience higher rates of violence, abuse and neglect, which, given their lower access to affordable and timely services, negates any meaningful early intervention.

AAPi’s ongoing call for local solutions⁷ also highlights that adapting service models designed for metropolitan areas can fail in regional areas, as thinner markets translate into workforce shortages, longer travel distances, and higher practitioner turnover. Place-based solutions - designed with local communities and drawing on local providers, schools, GPs, and ACCOs - can address local access barriers that centrally-designed programs cannot. These local solutions also build trust, engender cultural safety, and support workforce retention because services are embedded in the communities they serve.

Thus, by investing in place-based solutions, the NSW Government can reduce downstream costs of service failure in regional communities, including avoidable hospitalisations and crisis mental health presentations⁸; and psychosocial risks⁹ such as family breakdown, and the need to relocate from existing local communities to access support. This investment will also strengthen local economies and workforce pipelines. Telehealth, which is now an established enabler of access to mental health support, also works best as part of a locally anchored service model, not as a substitute for one.

Psychologists already practise in, and understand local needs in these communities, working as embedded consultants to schools, GPs, ACCOs, and other community-led services. They deliver assessment, intervention and capacity-building - locally and via telehealth. Yet, the current system underutilises them, as restrictive Medicare referral criteria, limited regional training pathways, and the substitution of psychological support with less qualified roles all compromise client outcomes. The NSW Government can address place-based workforce shortages, particularly in regional and rural areas, by supporting AAPi’s call to expand regional postgraduate training and employment opportunities.

AAPi recommendations:

• Fund place-based psychology positions embedded in regional schools, community health services and ACCOs, with local training pipelines to retain workforce in these communities.

• Invest in accessible, affordable, integrated and culturally safe, community-embedded models which combine face-to-face locally-delivered services with appropriately-used telehealth and specialist outreach, to reduce reliance on larger urban-based providers.

• Remove administrative referral barriers that delay treatment in thin rural markets, and foster information-sharing across psychology, primary care, other allied health, and community-based providers in multiple settings, including schools.

• Support our call⁴ for the Commonwealth to increase Medicare support and create early intervention item numbers, provide rural loadings, and develop local workforces, to address high out-of-pocket costs; long waitlists; and geographic disparities in access to physical and digital infrastructure.

(4) Additional practical ways in which psychologists can support the New South Wales Government to deliver foundational and disability supports:

AAPi can also work with the NSW Government to foster capable environments, as represented by Report Recommendation 3 to incorporate whole-of-family wellbeing into program design, commissioning & evaluation; Recommendation 4 to invest in dedicated transition pathways for children; and Recommendation 13 to uphold children’s right to supported learning in playgroup, early learning and school settings.

The Australian Institute of Family Studies¹⁰ finds that parents and carers of children living with disability report elevated psychological distress, burnout, and unsafe home environments. Building their capability through targeted skills training and coaching¹¹ programs creates more capable environments for children by fostering positive interactions and relationships at home, at school, and in community-based settings, which can sustainably improve children’s behaviour and functioning. Thus, positive

outcomes for the child are mediated by building the capability, wellbeing and capacity of the parents and carers around them.

By investing in facilitated capability-building for families and carers of young children with newly identified disabilities or developmental concerns, delivered by early childhood development professionals and parents with lived experience, the NSW Government can foster capable environments from the very start of these children’s journey. Funding holistic supports for parents and carers can prevent escalation pathways which are far more costly, including family breakdown, carer mental ill-health, and intensive crisis-focused interventions including child protection involvement.

A recent survey of AAPi members highlights the systems-based approaches psychologists employ to work with families, schools, and local communities, particularly in regional and rural areas facing specific language and literacy barriers and socioeconomic barriers. Psychologists provide psychoeducation, helping parents and carers to understand and respond to children’s presentation, and offer targeted support, including treating parental mental ill-health and dyadic interventions to foster positive familial relationships. They also help to co-design multidisciplinary supports, collaborating with other primary and allied health practitioners to create capable environments, utilising their expertise in neuro-affirming, trauma-informed, human- rights-based healthcare.

AAPi recommends:

• Fund targeted capability-building supports for parents and carers, including psychological support for parental mental health, psychoeducation and emotional support, and opportunities for peer connection, alongside interventions directed at their children.
• Fund capable-environment frameworks, including adequate support worker hours, staffing stability, and local family and school-based delivery, as preconditions in service specifications.

In conclusion, AAPi reiterates its position that improving outcomes for children and young people living with disabilities yields significant social, economic, and personal benefits for individuals and society alike. Socially, fostering an inclusive environment promotes diversity, empathy, and understanding, contributing to a more compassionate and accepting society. Children with disabilities and carers who receive tailored support experience enhanced social integration and build positive relationships with their peers, fostering a sense of belonging. Economically, investing in inclusive support prepares children with disabilities for meaningful participation in the workforce, reducing future dependency on social support systems, and contributing to a more skilled and diverse labour market. It also fosters innovation by tapping into the unique perspectives and talents of those living with disabilities.

On a personal level, improved support empowers children and young people living with disabilities, and their families and carers, boosting their confidence, self-esteem, and overall wellbeing. By breaking down barriers and providing equal opportunities, society benefits from the diverse contributions and achievements of individuals with disabilities, fostering a more equitable and thriving community. The concept of wellbeing from disabled children’s perspective is described as feeling supported, included, respected, valued, and capable, which we strongly recommend should sit at the heart of the NSW Government’s policies and practices.

Thank you once again for inviting us to provide further inputs towards the Inquiry. We look forward to continuing to work with you to better support the experiences and outcome of all NSW-based children and young people with disabilities, and their families and communities.

Sincerely,

Amanda Curran Chief Psychologist Australian Association of Psychologists Incorporated Email: Phone: www.aapi.org.au

REFERENCES

1. Australian Association of Psychologists Incorporated. (2025). Feedback to the Select Committee on foundational and disability supports available for children and young people in New South Wales. https://files.parliament.nsw.gov.au/fileapi/ParlFiles/GetArtifact/0010%20Australian%20Association%200f%20Psychologists%20Inc.pdf?serverRelativeUrl=%2Flcdocs%2Fsubmissions%2F89616%2F0010%20Australian%20Association%200f%20Psychologists%20lnc.pdf

2. Department of Health, Disability and Ageing. (2025). Thriving Kids Advisory Group Final Report. https://www.health.gov.au/resources/publications/thriving-kids-advisory-group-final-report?language=en

3. Australian Institute of Health and Welfare. (2026). Australia’s Disability Strategy 2021-2031 Outcomes Framework: 4th annual report. https://www.aihw.gov.au/reports/australias-disability-strategy/australias-disability-strategy-2021-2031-outcomes/contents/health-and-wellbeing/policy-priority-prevention-and-early-intervention

4. Australian Association of Psychologists Incorporated. (2026). Submission to Rural, Regional and Remote Medicare Access and Funding. https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Rural_and_Regional_Affairs_and_Transport/Medicareaccess/Submissions

5. Australian Institute of Health and Welfare. (2025). Rural and remote health. https://www.aihw.gov.au/reports/rural-and-remote-health

6. NSW Health. (2023) Inquiry into the equity, accessibility, and appropriate delivery of outpatient and community mental health care in New South Wales. https://healthcarefunding.specialcommission.nsw.gov.au/assets/Uploads/publications/Exhibits-143/Exhibit-D_TAB_D.001.229_MOH.9999.0972.0001.PDF

7. Australian Association of Psychologists Incorporated. (2025). AAPi 2025 federal election member advocacy priorities. https://www.aapi.org.au/common/Uploaded%20files/AAPi/AAPi%202025%20Federal%20Election%20Member%20Advocacy%20Priorities.pdf

8. NSW Health. (2023). NSW regional health strategic plan 2022-2032 priority framework https://www.health.nsw.gov.au/regional/Publications/regional-health-priority-framework.pdf

9. David McGrath Consulting. (2025). Analysis of unmet need for psychosocial support for people with mental health conditions in New South Wales. NSW Health. https://www.health.nsw.gov.au/mentalhealth/resources/Publications/psychosocial-report.pdf

10. Strawa, C., Joshi, A., Truong, M., MacDonald, J. B., & Butler, K. (2024). Parent-focused interventions to support the behaviours of children with disability. Australian Institute of Family Studies. https://aifs.gov.au/resources/policy-and-practice-papers/parent-focused-interventions-support-behaviours-children

11. Department of Social Services. (n.d.). Families and Children Activity. https://www.dss.gov.au/families-and-children-activity