Prime Minister Anthony Albanese and state premiers have signed a $25bn agreement to fund health and hospital services, bringing total federal spending to nearly $220bn over five years. The deal, finalised at Friday's national cabinet meeting, also includes a commitment to cap annual growth in the National Disability Insurance Scheme (NDIS) at 6% or less.
The federal government added an extra $2bn to its initial offer, which included $24.4bn through the National Health Reform Agreement and more than $600m in additional funding for public hospitals. An extra $2bn was earmarked for speeding up hospital discharge for elderly patients awaiting aged care beds, with over 3,000 people currently waiting to transfer.
National cabinet also agreed to delay the start of the Thriving Kids program, which provides services to children with autism and developmental delays, until October, with full implementation from 1 January 2028. The program had been due to start on 1 July, but states said they were not ready to take responsibility for foundational supports for young children.
The NDIS growth target of 5-6% is down from the current rate of about 9.5%. Children with permanent and significant disability will continue to be eligible for the NDIS. As of May 2025, children under 15 made up 43% of the 717,000 scheme participants but only 13% of payments, while those with autism or developmental delays accounted for half of participants but 23% of payments.
Health Minister Mark Butler and the Prime Minister had initially offered $23bn, with plans for the federal share of hospital funding to reach 42.5% by 2030 and 45% by 2035. The deal also includes funding adjustments to benefit smaller states struggling with rising health costs.
