The PM promised a ‘cracker’ announcement and delivered a windfall he says brings federal spending on public hospitals to a record of almost $34b. See how it stacks up for the states and territories.
The federal government has today promised an extra $1.7 billion in funding for public hospitals and health services next year.
Under a new agreement between the Labor government and all state and territory governments, the total Commonwealth contribution to state-run public hospitals will increase by 12% to reach a record $33.91 billion in 2025-26.
In a press conference in Canberra today, Mr Albanese described it as a “cracker” of an announcement.
“This funding will be delivered to states and territories to help cut waiting lists, to reduce waiting times in emergency rooms and to manage ramping,” said Mr Albanese.
“This matters to people, and this decision today will help save lives and lead to better outcomes for our nation’s hospitals.
“This builds on what we’re doing to strengthen Medicare – whether it be this additional support for our hospital system or, of course, our support for primary healthcare.”
The Northern Territory will get the largest increase of about 30%.
“To give you some idea of what that means – in the Northern Territory, it gets the largest increase, a 30% per cent increase as a result of the fact that they need this investment,” said Mr Albanese.
“Right across every state and territory, this means a double-digit increase in Commonwealth funding for their public hospitals. This is absolutely essential.”
The breakdown of the new funding boost for states and territories is explained in detail in the table below, released today by Mr Albanese’s office.
Mr Albanese was asked whether the funding equated simply to money that would have been given to the states anyway to cover inflation and responded by describing it as “additional funding”.
He used the opportunity to take a swipe at Opposition leader Peter Dutton.
“Labor created Medicare, and we will protect it,” he said.
“Our public health system is too precious to entrust to Peter Dutton and the Liberals, who ripped $50 billion out of public hospital funding when he was health minister.
“This $1.7 billion funding boost will protect our public hospital system, strengthen Medicare and help build Australia’s future.”
Federal health minister Mark Butler, who appeared at the press conference with Mr Albanese, described the agreement between the Commonwealth and the states and territories as a “really landmark deal”.
“We have a terrific public hospital system in Australia, staffed by some of the best-trained doctors, nurses and health professionals anywhere on the planet. But it is a hospital system under very, very serious pressure,” he said.
He said that without intervention the share of public hospitals would drop.
“Without intervention, [it] would drop substantially below 40% of the total hospital budget of our system,” said Mr Butler.
“The existing arrangements – just like in relation to the NDIS – simply aren’t fit for purpose.”
Health minister Mark Butler said the government was “very satisfied” with the progress on NDIS reforms and the development of foundational supports.
“But 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,” he said.
Mr Butler said the agreement was a “one year rollover” which was in addition to the usual increases states would be expecting under existing arrangements.
“The negotiation of the five-year agreement continues between jurisdictions and remains tied to positive progress on NDIS reform.”
Mr Butler foreshadowed public hospitals being a major issue at the looming federal election, which is yet to be announced but is expected to happen before mid-May.
“For too long we’ve seen governments stuck in trench warfare playing the blame game on hospital funding,” he said.
“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.
“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.”