Prime Minister Anthony Albanese and state premiers have finalised a historic five-year health agreement, injecting an additional $25 billion into Australia’s public hospital systems.
The deal, struck during a National Cabinet meeting this morning, brings total Commonwealth hospital funding to a record $219.6 billion between 2026-27 and 2030-31.
This finalised package represents a $4 billion increase over the federal government’s initial offer, a move designed to alleviate the "bed-blocking" crisis where elderly patients remain in public wards due to a lack of available aged care placements.
The funding boost is inextricably linked to broader systemic overhauls, including a commitment to make the National Disability Insurance Scheme more sustainable.
National Cabinet agreed to target an NDIS annual cost growth limit of 6% or less, with state contribution caps set at 8% starting July 1, 2028.