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.
To manage this transition, the governments will jointly fund the "Thriving Kids" program to support children with mild developmental issues, though its launch has been deferred until mid-2028.
Prime Minister Albanese characterised the agreement as a significant upgrade over previous arrangements, noting it provides three times more additional funding than the last five-year deal.
Tasmanian Premier Jeremy Rockliff led the state leaders in welcoming the "significant uplift," acknowledging that the extra capital, combined with federal investments in Medicare Urgent Care Clinics and cheaper medicines, provides a much-needed buffer for state budgets struggling under rising healthcare demands.