What’s in it for health? Qld, NSW and ACT budgets for 2025-26

Queensland's record health spend

Tuesday's budget marked the first from the LNP since 2014, following David Crisafulli's October 2024 win over Labor.

A record $33.1bn will be spent on Queensland’s health and hospital sector, a 10.2 per cent increase on the previous year.

Central to the investment is the government’s $18.5bn Hospital Rescue Plan, which will roll out over five years from 2024-25. It includes more than 2600 extra hospital beds across the state, the construction of three new hospitals in Toowoomba, Coomera and Bundaberg, and major expansions at 10 existing hospitals including Redcliffe, Townsville, Mackay, Logan, Cairns and Ipswich.

The plan also funds a new Queensland Cancer Centre, a cardiac hybrid theatre in Rockhampton, and more than 4500 new frontline health workers in 2025-26, including doctors, nurses and paramedics.

To help reduce ambulance ramping below 30 per cent by 2028, the Queensland Ambulance Service will receive a $1bn funding boost.

An expanded Surgery Connect program is also expected to deliver 30,000 additional elective surgeries next financial year.

In a move to protect bulk billing, the government has scrapped the so-called “patients’ tax” by permanently exempting GP payments from payroll tax.

Mental health services will receive a $3.1bn investment, including two new Step Up, Step Down youth mental health facilities. All funds collected through the mental health levy will be reinvested, and additional support will be directed toward regional health initiatives.

Australian Medical Association Queensland president Dr Nick Yim commended the state government for prioritising the health of Queenslanders, making special note of the initiatives announced for the improvement of patient flow and use of private hospitals for the reduction of elective surgery backlogs.

“The budget also promises 46,000 additional health workers by 2032 – a much-needed start to addressing our critical workforce shortage – but we need a clear plan detailing how this target will be met,” Dr Yim said.

“The government must release its data-driven workforce plan to show how it will attract and retain the doctors and nurses in the places and specialities where they are needed.

“AMA Queensland’s Workforce Working Group’s recommendations will be released shortly, and we urge Queensland Health to implement them to build the health workforce needed for the future. 

“While we wish it was not needed, we welcome the funding for additional security guards and ambassadors in our public emergency departments and hospital wards.

“Occupational violence is increasingly common, and our doctors and nurses deserve protection at work.”

New South Wales leaves nurses behind

The Minns government has announced its third budget, aimed at easing the pressure on housing, upgrading the public transport network, investing in Western Sydney and upskilling in the next generation via schools and TAFE spending.

In his third budget announcement, NSW treasurer Daniel Mookhey said the government was securing the state’s economy and the essential people in it while accelerating economic growth.

“We are making key investments to counter a housing crisis, to support our most vulnerable people, to deliver the schools, hospitals, public transport and roads we need and to back businesses and workers,” he said.

“We choose to invest in public hospitals. We refuse to sell them.  

“Hence our $12.4 billion spend on health infrastructure in Budget 2025-26.”

The NSW Nurses and Midwives’ Association (NSWNMA) has called the Treasurer's plan a “missed opportunity” to address the pay disparity between NSW nurses and those in other states and territories.  

General secretary Shaye Candish has welcomed the investment into infrastructure, hospitals and maternity care, however, she says the fight for better pay and conditions for nurses and midwives continues.

“Unless the NSW government is prepared to direct serious funding towards public sector nurses and midwives’ wages, we will remain behind [the other states],” she said.

“The Special Commission of Inquiry acknowledged nurses and midwives are struggling, and that the state’s public health system is stretched and underfunded, but rather than act with urgency the government has chosen to leave it for the industrial umpire to decide an outcome.

“Until the government invests in our workforce, more nurses and midwives will continue to flee NSW for better pay and conditions to the north and south.”

Ratepayers to fork out more for health in the ACT

This Budget from ACT Treasurer Chris Steel reveals a total $1.2bn spend on healthcare, with a good chunk to be allocated to the public healthcare system over four years.

The $980.1m investment will see the construction of the new Northside Hospital, the Canberra Hospital Master Plan and the construction of the Inner South Health Centre.

“Through the Budget we are making a record investment in health, building on our record of delivering quality services and new infrastructure,” Mr Steel said.

“This supports our commitment to make sure all Canberrans have access to high quality public healthcare, where and when they need it, and responds to growing demand and increased costs to support our local hospitals.”

The budget also contains the state’s $250 health levy plan, which will be tacked onto yearly rates notices until at least 2029-30.

Designed to ease the strain of government health spending, the extra funds collected from ratepayers is expected to bring in an additional $205.7 million over the next four years.

The Royal Australian College of GPs (RACGP) has welcomed the government’s commitment to primary care, ahead of significant changes to how payroll tax is applied to general practices in the ACT.

From July 1, like Victoria and South Australia, the ACT will make general practice revenue from bulk-billed services exempt from payroll tax liabilities.

RACGP NSW and ACT chair Dr Rebekah Hoffman said both the budget and tax changes will support more accessible general practice care.

“The previous payroll tax settings affected practices’ ability to recruit GPs and provide affordable care,” she said.

“Canberra has an ageing population and many Canberrans live with chronic disease, so it’s essential they can see a GP when they need to.

“The payroll tax changes will have a significant impact on Canberra practices’ financial viability and our ability to attract GPs to work in the capital.”