CANBERRA — Australia’s federal, state and territory governments on Friday reached an agreement on a landmark five-year funding deal for the nation’s public hospitals.
Prime Minister Anthony Albanese announced that the federal government will spend a record 219.6 billion Australian dollars ($153.8 billion) funding public hospitals and health services under a new five-year agreement that will come into effect from July.
Speaking alongside the state and territory leaders after meeting on Friday morning, Albanese said that the figure includes an additional 25 billion AUD ($17.5 billion) in funding from the federal government compared to the previous five-year agreement.
“This agreement represents one of the most significant national reforms in living memory. These reforms will ensure Australians continue to access world-class healthcare as well as disability support,” he said.
The deal ends a prolonged negotiation over the new agreement and comes ahead of a one-year extension to the previous 2020-25 deal expiring in June.
The states and territories in December rejected an offer from Albanese and Mark Butler, minister for health, of an additional 23 billion AUD ($16.1 billion) in funding, which included 2 billion AUD ($1.4 billion) to manage the increasing number of elderly Australians in hospital while waiting for beds in aged care facilities.
Peak doctors’ body, the Australian Medical Association, welcomed the new deal, but warned that the additional funding alone would not stop declining hospital performance without further reforms.