No more money on the table for hospital funding fight
Tess Ikonomou |
The nation’s health ministers are pushing for a greater federal contribution to public hospitals as Canberra declares there won’t be more money, just goodwill.
Health Minister Mark Butler will meet with his state and territory counterparts in Brisbane on Friday, as governments try to land a new five-year agreement.
A deal has proven elusive since national cabinet in 2023 agreed to the Commonwealth increasing its share of public hospital funding to 42.5 per cent by 2030 and 45 per cent by 2035.
The states have labelled the federal government’s offer as “laughable”.
Mr Butler said his counterparts were aware he wouldn’t be bringing more money to the meeting.
“I don’t have the authority to do that,” he told ABC Radio.
He said there was a lot of goodwill and believed a deal could be struck by the end of 2025.
“Behind the scenes there are very good, constructive, mature negotiations taking place,” the health minister said.
Prime Minister Anthony Albanese this week sent letters to state and territory leaders offering a $3 billion top-up of the additional $20 billion already on the table.
State and territory leaders in October said even with the additional $20 billion on offer, the actual share of Commonwealth funding would be closer to 35 per cent, “falling tens of billions of dollars short of what is needed”.
In a statement ahead of the meeting, the Northern Territory government said it would continue to push for its “fair share” of federal health funding.
“Right now, the NT gets the worst deal in the nation – we receive the lowest health funding contribution rate in the country at only 31.8 per cent, NT Health Minister Steve Edgington said.
“Hitting even the national average would mean another $200 million for territory patients.”
Queensland Health Minister Tim Nicholls on Thursday told state parliament the latest offer was underwhelming and did not meet demand.
“Queenslanders who might have been expecting a Christmas gift from their federal government have instead heard from the Grinch,” he said.
Mr Butler said there was always a bit of “political hyperbole” surrounding discussions.
Western Australia Premier Roger Cook said the deal on the table was insufficient, but he was keen to engage constructively with the federal government.
“I want to see a deal done by Christmas,” he told reporters.
“We want them to do better. We think they need to be a stronger partner in our overall hospital system funding.”
Labor placed health at the centre of its federal election campaign earlier in 2025, promising to inject more money into strained systems.
A report commissioned by the states and territories found up to one-in-10 public hospital beds is being taken by “stranded” patients needing alternative accommodation in aged care and disability support.
It called on the federal government to take greater responsibility through funding.
AAP
