It is hoped the funding boost will alleviate waiting lists, reduce waiting times in emergency rooms, and reduce ambulance ramping. Photo: Ambulance Active.
The government has effectively conceded it will not reach a new five-year National Health Reform Agreement (NHRA) with the states and territories before the next federal election and has instead announced a one-year “Band-Aid” extension for the 2025-26 financial year.
The $33.91 billion deal will see federal funding for state and territory public hospitals and health services lifted by an average of 12 per cent over the $30.19 billion allocated for the current financial year, including a one-off $1.7 billion contribution aimed at underpinning Medicare.
The government says the funding will be delivered to states and territories to help cut waiting lists, reduce waiting times in emergency rooms, and manage ambulance ramping.
The funding breakdown will see:
- NSW – up 11 per cent from $8.89 billion to $9.88 billion
- Victoria – up 12 per cent from $7.3 billion to $8.18 billion
- Queensland – up 12 per cent from $7.07 billion to $7.94 billion
- WA – up 11 per cent from $3.25 billion to $3.62 billion
- SA – up 15 per cent from $2.05 billion to $2.35 billion
- Tasmania – up 14 per cent from $660 million to $750 million
- ACT – up 16 per cent from $540 million to $630 million
- NT – up 30 per cent from $430 million to $560 million.
The NHRA states that major hospitals are funded according to how many and what type of patients are treated in the previous financial year, with funding adjusted accordingly as well as for cost increases in wages, rent, and services.
At the National Cabinet meeting in December 2023, the Commonwealth and state and territory governments agreed to work together to deliver system-wide structural health reform and also work to secure the future of the NDIS, and funding for the increase was allocated in the 2023-24 Mid-Year Economic and Fiscal Outlook (MYEFO).
Minister for Health and Aged Care Mark Butler said, “States and territories understand that the conclusion of a five-year deal – which is what they’re after and what was committed by the Prime Minister at the National Cabinet meeting in December 2023 – remains tied to that NDIS reform process continuing as it would.
“So, all jurisdictions have agreed over recent days to a single-year rollover agreement for 2025-26 which, in addition to the usual increases that they would be expecting under existing arrangements, include this $1.7 billion top-up,” he added.
Mr Butler said Australia had seen governments stuck in trench warfare playing the blame game on hospital funding for too long, before going on to blame the Opposition for the current situation.
“This infuriates Australians when all they want is to make sure they don’t spend hours ramped in an ambulance or waiting in an overcrowded emergency department,” he said.
“The choice facing Australians at the coming election couldn’t be clearer: an Albanese Government committing more funding to public hospitals, or more cuts from Peter Dutton, who cut $50 billion from public hospitals when he was health minister.”
Prime Minister Anthony Albanese doubled-down on the blame game, saying the “public health system is too precious to entrust to Peter Dutton and the Liberals”.
“This $1.7 billion funding boost will protect our public hospital system, strengthen Medicare and help build Australia’s Future. This decision today will help save lives and lead to better outcomes for our nation’s hospitals.”
Shadow Health Minister Anne Ruston said while the Opposition supported the additional funding, it said the lack of a new five-year agreement meant the extension amounted to little more than a “funding Band-Aid”.
“The Coalition is seriously concerned by the uncertainty the Prime Minister has created for hospital funding going forward and the Prime Minister’s lack of negotiating skills,” she said.
“It’s a cruel hoax because Australia’s hospitals are in crisis, and people are being forced to languish in uncertainty because of this government.”
