Slight increase in federal health spending but ‘gaps’ remain

 

The federal government has set aside $136.6 billion to be spent on health over the coming year as part of its $833.2 billion budget spend.


That is an additional $5.1b – or an increase of 0.2% – of total government spend from the 2025/26 budget.

Among the commitments made for health were Medicare funded three-year-old health checks, making urgent care clinics permanent and funding to cover new listings on the Pharmaceutical Benefits Scheme.

AMA National President Dr Danielle McMullen there was little else in the budget, other than the already announced boost in funding for public hospitals as part of the new National Health Reform Agreement, to address critical issues facing Australiaโ€™s health system.

The budget includes $25 billion for public hospitals over five years – a number that was agreed upon some months ago.

RELATED: This is how much WA public hospitals will get from the extra federal funding

โ€œOur modelling shows a remaining gap of at least $9.6 billion – a gap that must be bridged if the cycle of crisis our public hospitals are in is to be broken,” Dr McMullen said.

The AMA had provided the federal government with a raft of costed recommendations around improving after-hours access to GPs, strengthening continuity of care and taking the strain off emergency departments.

It had also called for a tax on sugar-sweetened beverages to be introduced to go some way to addressing obesity concerns, however such a tax has not been funded in the budget.

RELATED: Health system needs more than a quick fix AMA warns

RACGP President Dr Michael Wright welcomed what he described as “a number of positive initiatives” that were included in the budget.

โ€œIn particular, we welcome the governmentโ€™s commitment to re-establish three-year-old health checks and an expanded Comprehensive Health Assessment Program as part of its Thriving Kids initiative. This is something the RACGP called for in its budget submission,” he said.

He also welcomed the announcement of a digital baby book for all Australians and an extension of funding for quality improvement in general practice through the Practice Incentives Program Quality Improvement Incentive.

The RACGP and other groups represented by the National Council of Primary Care Doctors had called on the government to address Medicare settings that disincentivise longer consultations, however this did not eventuate.

Dr Wright said the council would continue to ask the government to properly fund longer consults with a 40% increase to Medicare rebates for Level C and Level D consultations. 

โ€œThe average GP appointment time is now 20 minutes as the health needs of our communities become more complex, with many people experiencing one or more long-term health conditions,” he said.

โ€œInvesting in long consultations would allow GPs the time and space for more comprehensive, empathy-driven care and would cut out-of-pocket costs for patients struggling with the cost of living.” 

RELATED: The state of play on Thriving Kids โ€“ and the role of GPs

The budget also included a decision to cut the higher private health insurance rebate for people aged 65 and over to fund $3 billion in aged care improvements. This had caused concern in the lead up to the budget that it would make healthcare more expensive for people who may not be able to afford it.

The Australian Private Hospitals Association expressed disappointment at the move and what it sees as the government’s failure to intervene to boost private hospital operating profits and therefore sustainability.

In a statement it said the government had lacked the “courage to address the causes of collapsed viability” in the private hospital sector and its that its latest budget was no exception, predicting healthcare in Australia would only get worse.

Earlier in May, the WA state budget committed a total of $9.1b over the next four years towards health.


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