Prime Minister Anthony Albanese and state premiers have signed a $25bn agreement to fund health and hospital services, with total federal spending on public hospitals reaching nearly $220bn over five years. The deal, finalised at Friday's national cabinet meeting, includes an extra $2bn on top of the initial offer, bringing the total to $24.4bn through the National Health Reform Agreement plus over $600m in further spending.
As part of the agreement, the start of the Thriving Kids program—providing services to children with autism and other developmental delays—has been delayed from 1 July to October, with full implementation by 1 January 2028. States had requested the delay, citing a lack of readiness to take responsibility for foundational supports. The program aims to stem growth in the National Disability Insurance Scheme (NDIS) to 6% or less, down from the current rate of about 9.5%.
Federal payments for hospitals will grow to 42.5% by 2030 and 45% by 2035. An extra $2bn has been earmarked to speed up hospital discharges for elderly patients waiting for aged care beds, with over 3,000 people currently in that situation. Smaller states will also receive budget adjustments to help with rising health costs.
The NDIS, currently with over 717,000 participants, will see annual cost increases targeted at 5-6%. Children under 15 make up 43% of participants but only 13% of payments, while those with autism or developmental delays account for half of participants but 23% of payments. Children with permanent and significant disability will remain eligible for the NDIS.
Health Minister Mark Butler said the deal prioritises investment in the public health system and builds on the government's commitment to strengthen Medicare, including funding for 137 urgent care clinics and expanded bulk billing. The agreement was finalised ahead of the new financial year and South Australia's caretaker period before its March state election.
