Federal election 2025: Prime Minister Anthony Albanese offers extra $1.7 billion in hospital funding

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Federal election 2025: Prime Minister Anthony Albanese offers extra $1.7 billion in hospital funding

Hospitals will get an extra $1.7 billion in Commonwealth money over the next year in a 12-month funding lifeline that pushes a full deal beyond the Federal election.

Western Australia will receive a $156 million boost to take total Commonwealth funding up to $3.6 billion for 2025-26, or 11 per cent more than the current year.

Overall, the Federal Government will pay $33.9 billion for hospitals.

“Our priority is strengthening Medicare, not ensuring that every taxpayer pays for some to get free lunch or karaoke night or a weekend away at the cost of low and middle-income earners,” Prime Minister Anthony Albanese said.

“Could I indicate very clearly, this is additional funding. This is additional funding to States and territories that will make an enormous difference.”

National cabinet agreed in 2023 to work towards a fresh hospital funding deal with extra Commonwealth funding in exchange for the States stepping up with the so-called foundational supports to help people who did not need to be on the NDIS.

Health Minister Mark Butler said the funding extension announced on Wednesday was not worth the same as what the States would have received in the first year of a full new agreement.

He pledged work would continue on a fresh five-year deal but said that prioritising NDIS changes, limitations on striking individual State deals and the WA Government going into caretaker mode on Wednesday meant it couldn’t be done before the Federal election.

Mr Albanese said the States were engaging constructively on the NDIS foundational supports, which will require them to put more money into things like teachers’ aides for children with autism.

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