Prime Minister Anthony Albanese and state premiers have finalised a £25bn agreement to fund health and hospital services, with total federal spending reaching nearly £220bn over five years. The deal, struck at Friday's national cabinet meeting, includes an extra £2bn from the federal government to speed up hospital discharges for elderly patients awaiting aged care beds.
The agreement also delays the start of the Thriving Kids program, which provides support for children with autism and developmental delays, until October. Full implementation is now set for January 2028, after states argued they were not ready to take on the responsibility. The program was originally due to start on 1 July.
As part of the deal, the federal government will cap annual growth in National Disability Insurance Scheme (NDIS) costs at 6% or less, down from the current 9.5%. Children with permanent and significant disabilities will remain eligible for the NDIS, while those with lower support needs will transition to the new program.
Health Minister Mark Butler and the Prime Minister had initially offered £23bn, but added £2bn to address concerns from smaller states struggling with rising hospital costs. The funding includes £24.4bn through the National Health Reform Agreement and over £600m for the public system, on top of existing investments in urgent care clinics and bulk billing.
Currently, more than 3,000 people are waiting to transfer from hospital to aged care. The deal comes ahead of the new financial year and the South Australian election in March. Figures from May 2025 show children under 15 make up 43% of NDIS participants but only 13% of payments, while those with autism or developmental delays account for half of participants but just 23% of payments.
