Albanese’s “cracker” announcement: $1.7B in additional funding for public hospitals and health services

The Albanese government has unveiled a $1.7bn funding boost for state-run hospitals amid “pressures” hampering the country’s health system.

The funding will be delivered through a new agreement struck between the federal and state and territory governments.

During yesterday's press conference at Parliament House, the Prime Minister said the Labor government's priority is strengthening Medicare.

“Australians rely upon Medicare as the centre of our healthcare, and today, I can announce that we’re delivering an additional $1.7bn to properly fund public hospitals and health services next year,” 

“This funding will be delivered to states and territories to help cut waiting lists, to reduce waiting times in emergency rooms … this matters to people, and this decision today will help save lives and lead to better outcomes for our nation’s hospitals.”

Under the agreement, federal funding for hospitals will jump by 12 per cent, bringing it to a record $33.91bn in 2025-26.

The Northern Territory will see the biggest percentage increase in public health funding out of all states and territories, with a 30 per cent jump - almost double that of the ACT, which came in second at 16 per cent.

Health Minister Mark Butler said it was a “landmark deal between the states, the territories and the Commonwealth.”

“The states operate the public hospitals, but the Commonwealth must always be a reliable partner to ensure that that core Medicare principle is always able to be enjoyed by every single Australian," he continued.

“We have a terrific public hospital system in Australia staffed by some of the best-trained doctors, nurses and health professionals anywhere on the planet, but it is a hospital system under very, very serious pressure.”

The Health Services Union (HSU) has welcomed the announcement, calling it an “important first step in securing a new long-term funding model.”

“While this is an important announcement, we’ll take a close look at the details to ensure it delivers for health workers," HSU national president Gerard Hayes said.

“A new five-year funding arrangement must be a top priority for the Prime Minister and his state and territory counterparts later this year.

“With an ageing population and the fallout from Covid still fresh, we need governments to step up if we want to maintain our world-class health system.

“That means significant investment in areas like allied health professionals and preventative care roles that have for too long been underfunded.

“State governments must commit to funding foundational supports that sit outside the National Disability Insurance Scheme to ensure it is sustainable and successful.” 

In NSW, nurses are calling for the extra funding to be used to deliver on their wage increase demands.

The NSW Nurses and Midwives' Association (NSWNMA) have been in negotiations with the state health department since June of last year, asking for a 15 per cent pay rise and improved conditions.

“The Minns Labor government has repeatedly acknowledged that the nursing and midwifery workforce needs a pay rise but has said they just can’t afford to meet the amount needed to fix the current wage disparity. With this additional funding, the Minns government can come back to negotiations and direct this money towards wages for nurses and midwives,” said NSWNMA acting general secretary Michael Whaites.

“We can’t deliver the healthcare system the people of NSW deserve without a strong and robust nursing and midwifery workforce. Without competitive rates of pay for our nurses and midwives here in NSW, we will continue to see them leave for better pay and conditions across the border, leaving wards and units short staffed and services closing.

“We call on the Minns Labor government to follow the lead of its federal Labor counterparts and put the additional health funding into retaining its essential health workforce which is on its knees.”