Rolling wrap of health sector reaction to the Budget

Many health initiatives in the Federal Budget had already been announced, although no doubt additional items of interest will be uncovered by those reading the Budget papers closely.

In the meantime, we link readers into key documents below, and also a rolling wrap of reaction.

The Federal Budget papers are here, the Treasurer’s Budget speech is here, Budget paper No 2 is here, the Department of Health and Aged Care stakeholder pack is here, the Women’s Budget Statement is here, and Health and Aged Care Minister Mark Butler’s statement is here.

Below are responses from Consumers Health Forum of Australia, Climate and Health Alliance, Dr Simon Judkins, Public Health Association of Australia, The George Institute for Global Health, Planetary Health Equity Hothouse at ANU, Australian Healthcare and Hospitals Association, Victorian Healthcare Association, Doctors Reform Society, Suicide Prevention Australia, LGBTIQ+ Health Australia, Health Equity Matters, cohealth, Advanced Pharmacy Australia, Pharmaceutical Society of Australia, People with Disability Australia, AMES Australia, Australian College of Rural and Remote Medicine, National Rural Health Alliance, Rural Doctors Association of Australia, Exercise and Sports Science Australia, Australian Medical Students’ Association, Australian Nursing and Midwifery Federation, Australian Primary Health Care Nurses Association, Australian College of Nursing, Royal Australian College of General Practitioners, Royal Australasian College of Physicians, Health Services Union, COTA, Tan Nguyen, Dementia Australia, Australian Physiotherapy Association, Allied Health Professions Australia, Speech Pathology Australia, Occupational Therapy Australia, The Australian Greens, Independent MP Andrew Wilkie, Catholic Health Australia, Mental Health Australia, Royal Australian and New Zealand College of Psychiatrists, Australian Association of Psychologists, the Australian Medical Association, and the Australia New Zealand Gynaecological Oncology Group (ANZGOG).

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More care, less cost

Consumers Health Forum of Australia

Tonight’s Federal Budget has made it easier for Australian healthcare consumers to afford and access the healthcare they need, when they need it, says Consumers Health Forum of Australia CEO Dr Elizabeth Deveny.

“For a long time now, what we have been hearing from consumers is that they have been struggling to afford the healthcare they need due to the rise in cost-of-living. It is great to see the Government providing Australians cost-of-living support so they can better afford essentials like healthcare and medicines,” said Dr Deveny.

CHF is supportive of the following health related Budget measures announced tonight:

– Investments into primary care which will make it easier for people to see a bulk billed GP

– Cheaper Medicines with PBS medicines being reduced to no more than $25 per script.

– Investment into Women’s Health recognising how the current system often serves Australian women poorly.

“These are all important practical changes that will make healthcare more affordable and accessible to Australians. Things like the PBS co-payment being dropped from $31.60 down to $25 will make a real difference to people’s wallets,” said Dr Deveny.

In the lead up to the Budget, CHF advocated to strengthen Medicare through cheaper medicines and increased bulk billing and we are pleased to see that the Government has heard those calls and acted on them in tonight’s Budget.

Saba, a consumer from regional New South Wales feels that: “The budget is a start, but let’s ensure every community, regardless of where they come from and where they live, has equal access to quality healthcare.”

There are other areas of the Budget where CHF feels not enough has been done. These include:

– Making specialist care more affordable – Consumers continue to tell us they can’t afford to see a specialist. Low Medicare rebates and long wait times put essential care out of reach. We welcome updates to the Medical Costs Finder website but urge further reform, so no one misses out on healthcare due to cost.

– More affordable and accessible allied healthcare – Services like physio, dietetics and mental health care are vital for managing chronic conditions. Yet most Australians still pay out of pocket. Limited rebated sessions mean many simply go without.

– No increase to income support. We’re disappointed there’s still no rise to income support payments. We back the Raise the Rate campaign. Better incomes mean better health, this is especially important for the one in six Australian children who live in poverty.

– Oral healthcare – Extending public dental care funding is welcome, but it’s not enough. We need a national commitment to oral health that treats it as part of overall health, not an optional extra.

The Budget also remained silent on how Australia will deal with climate change and its ongoing impact on people’s health. Australia still lacks a plan for managing the health impacts of climate change and the rapid rise of artificial intelligence, AI. Both are reshaping how healthcare is delivered – we must get ahead of them, not fall behind. There is also no roadmap on preventative healthcare.

“We welcome the investment in GPs and medicines but that’s only part of the story. The real test is whether you can afford the care you need, where you live, and how your life circumstances affect your health. That’s where this Budget falls short,” said Dr Deveny.

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Climate matters

Gaps and silences

Dr Simon Judkins, emergency medicine physician

What is clear is that the budget, and both major parties are still avoiding any conversation about climate change and the current and future impacts on our health. Clearly, more needs to be done to decarbonise, but we are seeing communities across the country and our region impacted by extreme weather events, massive rainfall, heat waves and humidity.

Deaths from infectious diseases, melioidosis, post-Alfred barely got a mention. These conditions will continue and we will see the changes in disease spread, with more dengue and other mosquito-borne disease.

Regional and rural areas need an investment in a plan to combat the impacts of heat, the wet and the health risks… and we cant see a plan yet. Everything is metro focussed and rural communities get short-changed again…

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Prevention needs greater investment

Public Health Association of Australia

This year’s Australian Government budget maintains the decades-long tradition of spending on treatments and hospitals, rather than investing in preventive health measures that stop people getting sick in the first place, say Australia’s public health professionals.

“We implore this and future governments to enact a precautionary principle to ensure the public’s money is invested in fences at the top of the cliff, rather than ambulances at the bottom of it,” Public Health Association of Australia CEO, Adjunct Professor Terry Slevin, said.

“The Australian Government’s most recent public hospitals funding agreement with states and territories (see table), showed Commonwealth spending increased by 12% in one year.

“It is simply not sustainable for this to continue for another 20 years. The only rational response is to reduce demand by investing in making people healthier, through real commitments in prevention.

“Most health measures in this year’s budget have already been announced.

“These include the investment of $251.7 million into the Australian Centre for Disease Control (Aus CDC), because the country needs an independent entity to lead national efforts against both infectious and chronic diseases. We enthusiastically welcome the investment in the Aus CDC.

“While we know Labor intends to make permanent the interim Aus CDC should it win the forthcoming election, the Opposition has yet to make clear its position about what they will do for pandemic preparedness.

“We hope Opposition Leader Peter Dutton will announce the Liberals’ plans in his budget-reply speech, or prior to the election, so that voters have a clear understanding about this vital piece of public health infrastructure.”

There’s also $188 million for tackling illicit tobacco and associated nicotine products, announced on 12 March, which includes scanning more shipping containers at ports and boosting cooperation with regional authorities. We applaud Minister Mark Butler’s strong stance against illicit tobacco and vaping, and for standing up to Big Tobacco’s ceaseless attacks on tobacco excise.

Regarding women’s health, we appreciate funding to put listings for contraceptives, endometriosis, and IVF treatments on the Pharmaceutical Benefits Scheme, announced on 16 March, and Assistant Minister Ged Kearney’s ongoing efforts to tackle medical misogyny.

The public health community welcomes the funding in this budget for the $25 cap for medicines under the Pharmaceutical Benefits Scheme, as well as $8.5 billion to deliver an additional 18 million bulk billed GP visits each year.

There is also $644 million toward primary care access as part of the Urgent Medicare Clinics scheme. These are equity measures that should improve access to healthcare for vulnerable people, for whom cost can be a major barrier.

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Prevention and chronic disease ignored at our peril

The George Institute for Global Health

The George Institute for Global Health is pleased to see significant investment in important health initiatives included in tonight’s Federal budget, including:

• A record commitment of $7.9 billion over the forward estimates into Medicare to support greater access to bulk billing
• $1.8 billion for new and amended listings and $785 million to lower the cost of medicines on the Pharmaceutical Benefits Scheme (PBS)
• $793 million for women’s health (primarily contraception, and menopause and endometriosis care)
• $157 million for tobacco and e-cigarettes (vapes) control.

Importantly, the Medicare and PBS investments will give everyone in the community the ability to access critical healthcare when they need it. We also welcome the support for Australia’s strong laws on tobacco and vaping and for filling important gaps in women’s reproductive healthcare.

However, the lack of funding for prevention in this year’s budget means the social and economic burden of preventable disease on our community and our health systems will continue to grow.

In 2022, chronic conditions were recorded as an underlying or associated cause of death for 90 percent of all deaths in Australia.

One condition alone, diabetes, has increased 220 percent in the last two decades in Australia, and is the third leading contributor to the gap in life expectancy between Indigenous and non-Indigenous Australians.

Overweight and obesity is now the leading risk factor for death in Australia, surpassing tobacco in 2024 for the first time – yet there is little in the budget to prevent diet-related disease.

“With a major UN summit on non-communicable disease coming up in September 2025 – the first in seven years – the Australian Government should show leadership in this area,” said Veronica Le Nevez, Head of Impact and Engagement, Australia, The George Institute.

“Whoever secures power in the upcoming election, now is the time to recalibrate and bring greater focus and resources to preventing and controlling chronic conditions such as cardiovascular disease, cancer, respiratory disease, diabetes, and kidney disease, which are some of our biggest killers.”

Professor Simone Pettigrew, Program Head of Health Promotion at The George Institute and Conjoint Professor in the Faculty of Medicine, UNSW Sydney, said: “This is a good budget for health but there continues to be an overemphasis on treatment instead of addressing underlying issues with stronger policies that protect Australians from getting sick needlessly.

“We need to invest much more in prevention to arrest the increase in diet-related disease, and get back on track to a healthy population. The more we invest now, the more benefit we reap and costs we save down the track. We should be focused not only on living long, but on living well.”

In response to the budget, The George Institute is calling on all parties to:

• Increase funding for the Australian Centre for Disease Control to accelerate the inclusion of prevention in its scope
• Fully fund the National Preventive Health Strategy, including implementing a 20% levy on sugar-sweetened beverages
• Make the Health Star Rating mandatory on all eligible products to provide consumers with transparent information on the healthiness of packaged foods

Professor Amanda Henry, Program Head of Women’s Health at The George Institute and Professor of Obstetrics and Gynaecology in the Faculty of Medicine at UNSW Sydney, said: “It’s great to see women’s health finally receiving more attention, however the focus unfortunately remains primarily on reproductive (what we call ‘bikini’) medicine, which fails to capture the full spectrum of health needs across the course of a women’s life and not just when they’re having a baby or going through menopause.

“The biggest killers of women are chronic diseases like heart disease, but risk factors and management of these diseases are really under-studied in women compared to in men.

“Women who experience high blood pressure or diabetes in pregnancy, for example, have significantly increased risks of developing heart disease, stroke, diabetes, or kidney disease. Yet save for one six-week post-birth check-up, there is no system in place or Medicare funding for ongoing monitoring. And this is just one area that is chronically under-resourced.”

The George Institute is calling on all parties to:

• Increase funding for women’s health research, particularly on under-studied conditions
• Introduce a requirement and provide funding for all applicants of NHMRC/MRFF funding to increase representation of women and LGBTQIA+ populations in clinical trials, to build the evidence base on how diseases affect underserved and marginalised populations.

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Disappointments

Planetary Health Equity Hothouse, ANU

The March 2025 pre-election Commonwealth Budget does little to achieve the equitable enjoyment of good health in a stable Earth system i.e. Planetary Health Equity.

1. While there is acute understanding of the need to address financial hardship, there is no attention to the underlying structural inequality that is fundamentally harming the health and wellbeing of the Australian population and driving environmental degradation. Without addressing the root causes of inequality, social, economic and intergenerational equities will worsen.

2. There are important commitments made to strengthening Medicare, investment in primary care provision and cheaper medicines. However, we haven’t seen nearly enough commitment to prevention – prevention of chronic diseases and the broader relationship between climate, equity and health.

3. The budget makes important commitment to funding for disaster recovery after ex-Cyclone Alfred but there is little change in the Governments’ approach to climate change mitigation. The best approach is prevention of climate disasters, and if we don’t get serious about climate change, it’ll be future generations who suffer.

In short: The budget largely covers the short term, but there is little that will enable the long term systems-changing policy agenda that is necessary for planetary health equity.

If you want to know more about policy changes that can support Planetary Health Equity, check out our election platform on the Policy Engagement section of our website: https://lnkd.in/gahdmZfe or here: https://lnkd.in/gzeWxuxA

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Structural challenges remain

Australian Healthcare and Hospitals Association

The Australian Healthcare and Hospitals Association (AHHA) welcomes the Federal Government’s commitment to Medicare in tonight’s Budget, recognising its focus on easing cost-of-living pressures for Australians accessing healthcare.

Key Budget measures for the health system have focused on increases in bulk billing incentives, a reduction in Pharmaceutical Benefits Scheme (PBS) co-payments to $25 from 2026, and funding for 50 new urgent care clinics. Additional funding has also been allocated to improve access to women’s health services, as well as an increase in the Medicare levy threshold to help ensure that low-income earners are exempt.

“Affordability is a crucial component of accessibility, but it is not the only one,” says AHHA Chief Executive Kylie Woolcock.

“Medicare is built on the principles of equity, universality, efficiency, and simplicity. To fully realise these principles, we must also consider broader structural challenges such as workforce shortages and service availability. Without addressing these issues, affordability alone will not guarantee equitable healthcare access.

“The one-year extension to the National Health Reform Agreement now gives us an opportunity to embed in our system coming together in the shift to focus on better and equitable health outcomes and system sustainability.”

To achieve this, as a system, we need to measure and report what matters and look to develop a National Health Information Strategy that allows access to timely, high-quality data to support better care and system-wide improvements.

Funding models should also be explored that incentivise improved health outcomes for individuals and communities and build a sustainable and resilient health workforce that incentivises person-centred care and supports regional innovation and reform.

“Recognising that the 2025-26 Budget is focused on addressing cost-of-living pressures, we need to continue to consider the health system as a whole – and question the processes by which we currently manage, fund, deliver and receive care.”

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Primary care focus welcome, but missed opportunities

Victorian Healthcare Association

The Victorian Healthcare Association (VHA) has welcomed targeted funding in this year’s Federal Budget to address the long-term challenges facing the Australian healthcare system, including cost-of-living pressures and the pressing need to improve health equity.

This year’s Federal Budget 2025-26 has a strong focus on primary care; improving aged care delivery and expanding the provision of culturally safe care, but there is a missed opportunity to invest in the mental health workforce.

A major focus is $7.9 billion in funding to strengthen Medicare, which was announced prior to the Budget. The Federal Budget contains more than $230 million to support continued implementation of the Aged Care Act, which will come into effect 1 July 2025.

It is pleasing to see an investment of more than $70 million over four years to improve access to culturally safe care in mental health and aged care settings, consistent with the VHA’s submission to fund the provision of culturally safe care.

VHA CEO Leigh Clarke welcomed the strong focus on implementing the work of the Federal Government’s Strengthening Medicare Taskforce – which demonstrates serious efforts to improve health equity for all Australians.

“The announcement of $7.9 billion to expand bulk billing arrangements will go some way to supporting Victoria’s Community Health Services to bridge the gap between the funding received and the true cost of delivering care. This will support the delivery of affordable care to local communities, support the sustainability of vital services and address workforce supply.

“$657.9 million has been announced to deliver additional Medicare Urgent Care Clinics which continue to see increased demand and are well run by hospitals and health services across the state.”

The Federal Government has committed to $291.6 million over five years (from 2024–25) to support implementation of the new Aged Care Act on 1 July. This includes $116 million to strengthen the Aged Care Quality and Safety Commission; $53.2 million to fully implement the Single Assessment System and $24.4 million for additional Commonwealth Home Support Program assessments.

“We are pleased to see funding to support implementation of the new Aged Care Act, yet this will not support individual providers in implementing changes to their services, including the transition to delivery of the Support at Home program. The sector is concerned that the 1 July implementation is fast approaching and there is still no clarity on the Aged Care Rules that will sit under the new Act, nor clarity on the impact for services.”

Ms Clarke said funding to support culturally safe care across aged care ($47.6 million) and mental health ($24.7 million) will build the capacity of health services to provide safer care for Aboriginal and Torres Strait Islander people and reduce systemic inequities.

This is strongly aligned with the VHA’s Federal Budget submission – which called for $50 million over four years to support the delivery of culturally safe care in mainstream health services.

Ms Clarke noted a significant missed opportunity is funding to build the pipeline of mental health professionals. This is vital to address the increasing demand and complexity in mental health services in rural and regional Victoria.

‘There is no funding to progress the implementation of the National Mental Health Workforce Strategy 2022-2032. It is critical we see investment that develops a stable and skilled workforce to deliver the mental health and wellbeing services Australians need now and into the future.’

Ms Clarke flagged that in 2024, the Government commissioned and received independent reviews on the scope of practice for multidisciplinary health professionals (for example, nurses and community paramedics) and workforce provision in rural and regional Victoria. The Government is yet to respond to the recommendations of these reviews, which would enable person-centred care which addresses population health inequities, planning and coordination.

“With the Federal election pending, we hope to see bipartisan commitment to the funding announced in this Budget, and any additional election commitments to address gaps in funding and progress against the recommendations of the Strengthening Medicare Taskforce.”

Ms Clarke said the VHA was pleased to see the Federal Government has responded to many of the priority area identified by the publicly funded healthcare sector.

‘We look forward to working with the Victorian Government to understand how these initiatives align with the upcoming Victorian State Budget, expected to be handed down in May.’

Key points

Health and primary care

• $7.9 billion over four years (from 2025-26) to expand bulk billing incentives to all Australians eligible for Medicare.
• $1.8 billion over five years (from 2024-25) for new and amended Pharmaceutical Benefits Scheme (PBS).
• $662.6 million over five years (from 2024-25) to expand the general practice workforce.
• $657.9 million over three years (from 2025-26) for 50 new Medicare Urgent Care Clinics.

Aged care

• $2.5 billion over five years (from 2024–25) to meet the cost of the Fair Work Commission’s decision for aged care nurses.
• $291.6 million over five years (from 2024–25) the delivery of aged care reforms and implementation of Royal Commission into Aged Care Quality and Safety recommendations.

Mental health

• $46 million over four years (from 2024-25) to continue digital mental health services.

Culturally Safe Care

• $47.6 million over four years (from 2025-26) to support First Nations organisations to deliver culturally appropriate aged care assessments for First Nations people.
• $24.7 million over four years from 2025-26 to improve access to culturally safe and qualified mental health support in First Nations communities.

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Band-Aids welcome but major surgery needed

Doctors Reform Society

“The budget has highlighted a range of Medicare changes all previously released. They are welcome changes,” said Dr Tim Woodruff, Vice President of the Doctors Reform Society.

“But the Health Minister has announced almost nothing to address the structural reforms needed to update Medicare, reforms which he announced as Chair of the Strengthening Medicare Taskforce in early 2023.”

Instead of genuine reform, we are getting Band-Aids, welcome indeed, but failing to address what is needed into the future.

As his Taskforce recommended: “Support general practice in management of complex chronic disease through blended funding models integrated with fee-for-service.”

“The Taskforce made many recommendations that would help achieve the goal of efficiently funding a high quality, 21st century primary health care system,” said Dr Woodruff.

“Most have not been acted upon. Medicare needs major surgery, not just extra bulk billing payment and cheaper drugs, and this budget is a missed opportunity to kick-start the process.”

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Suicide prevention is neglected

Suicide Prevention Australia 

Suicide Prevention Australia condemns the Albanese Government for failing to provide any targeted funding for the implementation of the recently released National Suicide Prevention Strategy in the Federal Budget.

Whilst suicidal distress levels have remained stubbornly high, funding to suicide prevention and mental health has been significantly cut over the coming years.

This Budget does not provide the necessary funding to implement the Strategy in a way that will save lives. The suicide prevention sector has been clear: a Strategy without proper investment is just words on a page.

Suicide Prevention Australia CEO, Nieves Murray, said the lack of meaningful funding raises serious concerns about the government’s commitment to reducing suicide.

“While there are several isolated measures that address some of the causes of distress, there is no investment in the government’s recently released Strategy to tie it all together.

“This Budget sidesteps the systemic reform required to protect our community from suicide in a coordinated way. Just last month, the government released the National Suicide Prevention Strategy with great fanfare, but tonight’s Budget renders it a hollow promise.

“The missed opportunity here is that we have a comprehensive Strategy ready to go which is widely supported by suicide prevention services and people with lived experience. It just needs action. Instead, we have a Strategy with no clear funding pathway, and services left scrambling to fill the gaps.

“It is incomprehensible that, at a time when distress levels are at an all-time high, the government has failed to deliver meaningful funding for suicide prevention. This Budget flies in the face of the commitments made in the National Strategy and leaves Australians at risk,” said Ms Murray.

The National Suicide Prevention Strategy outlines a vision for a whole-of-government, whole-of-community approach to suicide prevention. However, without dedicated funding, key priorities —including lived experience-led initiatives, research funding, and local community-based suicide prevention programs — remain in jeopardy.

“Every day, nine lives are lost to suicide in Australia. Our latest Community Tracker revealed that nearly one in five (19%) young Australians (18-34) have experienced suicidal distress in the last 12 months, including having serious thoughts of suicide, making a suicide plan, or attempting to take their life.

“The government told us they were serious about suicide prevention when they launched the National Strategy. But when it came time to put their money where their mouth is, they fell silent.

“We simply cannot afford to delay action. We are calling on the government to urgently commit to funding the implementation of the National Suicide Prevention Strategy,” said Ms Murray.

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Many welcome measures and some gaps

LGBTIQ+ Health Australia

LGBTIQ+ Health Australia (LHA) welcomes the Albanese Government’s commitment to quality, accessible and affordable healthcare in the 2025-2026 budget, including continued funding for QLife, with $0.4 million allocated for 2025–26.

“Continued funding for QLife literally saves lives,” said LHA CEO Nicky Bath. “This ensures trained peer support workers remain available to provide immediate support and crucial connections to longer-term care.”

QLife is a vital, free, anonymous, Australia-wide peer support and referral service providing phone and webchat support for LGBTIQ+ people experiencing emotional distress, isolation, or requiring assistance with sexuality, gender, and wellbeing issues.

“This funding builds on recent initial funding investments to implement the National Action Plan for the Health and Wellbeing of LGBTIQA+ People 2025–2035 (National Action Plan), launched last December” Bath said.

LGBTIQ+ people have poorer health outcomes, particularly regarding mental health and suicide, some cancers, and alcohol and other drugs use. These disparities are directly linked to stigma and discrimination.

“LHA also welcomes broader health measures in the Budget that improve affordability and access, including cheaper medicines, more Medicare Urgent Care Clinics, and increased bulk billing incentives—these steps toward healthcare equity also benefit LGBTIQ+ communities,” Bath said.

“LHA welcomes the $792.9 million for women’s health, addressing decades of neglect. Key highlights include new contraceptive options, expanded Medicare support for menopause care, and specialised services for conditions such as endometriosis.

Also welcome is continued action on recommendations from the Royal Commission into Aged Care Quality and Safety, highlighting the need to ensure aged care providers offer accessible, safe, and inclusive care for LGBTI older people.

Significant health and wellbeing gaps remain, including the need for national coordination to address sexual, domestic, and family violence affecting LGBTIQ+ people; dedicated support for LGBTIQ+ people with disability; action on equitable access to care for trans and gender diverse people; as well as the other pressing health and wellbeing disparities identified in the National Action Plan.

“Implementing the National Action Plan remains a priority to deliver on its promise of a healthier, more inclusive society, and ensure LGBTIQ+ Australians have access to the high-quality care they deserve,” Bath said.

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Brings Australia closer to virtual elimination of HIV

 Health Equity Matters

The Australian Government’s continued investment in HIV prevention, testing and treatment confirmed in tonight’s 2025/26 Federal Budget, puts Australia a step closer to virtual elimination of transmission, according to Health Equity Matters, the peak body for the HIV response.

$2.7 million in 2025–26 to extend ACON’s (our New South Wales member organisation) National Multicultural Peer Navigation Pilot and ASHM’s HIV PrEP Workforce Development Pilot, builds upon the $43.9 million for HIV initiatives and $126.5 million for bloodborne viruses (BBVs) and sexually transmissible infections (STIs) allocated in the previous budget, demonstrating the Federal Government’s ongoing commitment to the virtual elimination of HIV transmission in Australia.

“Tonight’s budget reinforces the Albanese Government’s dedication to the virtual elimination of HIV transmission in Australia,” said Dash Heath-Paynter, CEO of Health Equity Matters. “The continued investment in HIV prevention, testing, and treatment programming recommended by the National HIV Taskforce, chaired by Minister Butler, is absolutely essential, Health Equity Matters CEO Dash Heath-Paynter said.

Health Equity Matters strongly endorses the formal funding of a $15.5 million LGBTIQA+ health plan announced in December which includes a grants program, reinvestment in La Trobe University’s ‘Private Lives’ and ‘Writing Themselves In’ health and wellbeing surveys, and $500,000 to expand a specialised intersex mental health and wellbeing service.

Health Equity Matters also acknowledges the Albanese Government’s broader health investments that will benefit our communities.

The Government is making life-saving medicines even more affordable, with the maximum cost of a script under the Pharmaceutical Benefits Scheme (PBS) to be reduced to $25, creating significant benefit to people who need to take daily HIV anti-retroviral medicine or PrEP.

The budget also allocates new investment of $8.5 billion to deliver an additional 18 million bulk billed GP visits each year. For people who struggle to afford visits to the doctor, this investment improves access to health and significantly reduces out-of-pocket costs for some patients. This will make a visit to the doctor for HIV and STI screening and prevention advice cheaper.

Australia’s HIV response is underpinned by a multi-partisan approach to policy development and program investment. We acknowledge the Coalition’s previous endorsement of the National HIV Taskforce report and commend the Opposition for matching Labor’s investment in bulk-billing and cheaper medicines.

Health Equity Matters looks forward to continuing its work with members across the parliament to implement evidence based programming and initiatives to achieve the virtual elimination of HIV transmission by 2030 and to reduce future expenditure on healthcare through averted HIV infections.

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More action needed

cohealth 

Leading not-for-profit community health organisation, cohealth, is welcoming the investments in health and cost-of-living relief measures contained in the Federal Budget — but is calling on the Commonwealth to take further decisive action to assist people with complex health and social needs.

cohealth Chief Executive, Nicole Bartholomeusz says the move to invest in and strengthen Medicare, including the proposed incentives for bulk-billing GP clinics, are particularly welcome.

“These incentives will go some way to bridging the gap between the funding we receive and the actual cost of GP care,” Ms Bartholomeusz says, “supporting cohealth to deliver the best possible care for our communities.”

As previously announced, Labor is also promising if it wins the next election that the cost of most PBS medicines will be cut from $31.20 to $25.

“cohealth supports reducing the cost of PBS medicines, so that everyone – regardless of their income – can access the healthcare and medication they need, when they need it,” Ms Bartholomeusz says.

cohealth also acknowledges that the Budget’s increase to the Medicare levy low-income threshold, coupled with the announced tax cuts, have the potential to improve the cost-of-living for cohealth’s communities.

However, Ms Bartholomeusz says there is still much work to be done.

“At cohealth, we are committed to using our voice to champion the systemic changes required to improve the health and wellbeing of our communities,” Ms Bartholomeusz says.

With the 2025 federal election announcement imminent, cohealth is calling on the Commonwealth to act by:

• Increasing bulk-billing incentives.
• Making MBS changes that support healthcare professionals to better help Australians, including increased rebates for longer consultations.
• Investment piloting in Tasmanians’ health by funding a new model of community health in the Glamorgan Spring Bay local government area.
• Piloting a new model of resourcing urgent care and lifesaving emergency GP-led care in rural and remote Tasmanian communities where there are no emergency departments.

“We urge the Federal Government to consider the changes we are proposing and take decisive action to address the pressing challenges facing primary care in our communities,” Ms Bartholomeusz says.

“These reforms are not just an investment in healthcare – they are an investment in the well-being and resilience of our communities, enabling us to meet the rising costs of providing essential health services without compromising quality or accessibility.”

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Applause, and a call for action

Advanced Pharmacy Australia

AdPha applauds health-focused budget to expand primary care access and lower medicine costs

Albanese Government puts health in the spotlight with cost-of-living measures to improve patient care

Advanced Pharmacy Australia (AdPha) tonight welcomes the Albanese Government’s 2025-26 Budget, with a focus on improving access to doctors, expanding pharmacy services and reducing medicine costs, while reiterating the need to invest in the advanced pharmacy workforce to ensure patient safety and maximise the impact of hospital investments on patient outcomes.

The 2025-26 Labor Budget outlines several cost of-living health measures to make it easier and more affordable for Australians to receive care, and includes a $1.8 billion increase in public hospital spending, bringing total 2025- 26 investment in public hospitals to $33.9 billion.

AdPha welcomes the $689 million investment to reduce the general PBS co-payment to $25, and $1.8 billion for new and amended PBS listings, including medicines for cancer treatment, arthritis, menopause, endometriosis and other health conditions.

AdPha President Tom Simpson FANZCAP (Lead&Mgmt) says a reduction in the cost of PBS medicines is a welcome complement to the government’s $7.9 billion commitment to increase GP bulk-billing incentives.

“We supported the boost to GP bulk-billing when it was announced earlier in the year, while cautioning that more Australians will continue to end up in hospitals unnecessarily if the cost of medicines is not also addressed.

“Tonight, it is great to see the Albanese Government confirm the reduction in the PBS general co-payment to $25 – the lowest it has been in over two decades – complementing other changes this government has made to dispensing quantities and safety net thresholds, making medicines cheaper and more affordable for Australians.

“The $793 million women’s health package aimed at reproductive health and menopause will importantly see continued expansion of pharmacists’ scope of practice.

“AdPha members from our Women’s and Newborn Health Specialty Practice Group highlighted medicines access issues at Senate inquiries into reproductive health and menopause in this term of Parliament, and we acknowledge the Albanese Government for hearing the call from our expert members and taking action.

“As our members have been dealing with IV fluid shortages over the past year, we are also pleased the Government has listened to our calls for more domestic manufacturing capacity.

“The $22.9 million investment over five years from 2024–25 to expand onshore IV fluid production capacity and establish a panel of suppliers will ensure ongoing availability of these crucial products for care in our cancer services, intensive care units and emergency departments.”

Mr Simpson acknowledges the $662.6 million investment in growing the primary care workforce but warns it fails to address the critical pharmacy workforce crisis. Government analysis confirms shortages are experienced in almost every jurisdiction, with the situation even more severe in regional areas.

“Every Australian deserves access to a full team of healthcare experts.

“Investment in new PBS-listed medicines is key to keeping Australian hospitals world class, but must be matched with investment into our specialised, advanced pharmacy workforce to ensure innovative treatments are used safely and effectively.

“Investing in pharmacists is just as vital as investing in doctors and nurses – without it, patient care will suffer.

“As the scope of practice for pharmacists continues to expand through Commonwealth or state-based programs and initiatives – such as in the treatment of uncomplicated urinary tract infections and supply of oral contraceptives in this Budget – we must continue to grow the pharmacy workforce so more Australians can benefit from these services, and not just those living in metropolitan areas.”

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Historic investment

Pharmaceutical Society of Australia

The Pharmaceutical Society of Australia (PSA) welcomes the Albanese Government’s 2025-26 Budget, investing in a number of measures that allow pharmacists to deliver timely, accessible care to Australians.

Of the key measures announced pre-Budget, PSA again reaffirms its support for the government’s record $573 million investment in women’s health initiatives, including funding for a nation-wide trial to boost access to treatment for uncomplicated urinary tract infections (UTIs) and hormonal contraception through community pharmacists, as well as the historic investment to lower the PBS general patient co-payment from $31.60 to $25.00 on 1 January 2026.

In particular, PSA welcomes the federal government’s investment in the further development of the Code of Ethics for Pharmacists, reflecting evolving practice and supporting pharmacists as new ethical paradigms arise.

PSA National President Associate Professor Fei Sim FPS said the work will ensure pharmacists are supported to practise to their full scope:

“Supporting pharmacists in ethical decision-making is particularly critical considering the rapid growth in scope of practice and evolving community expectations.

“PSA’s focus is on ensuring that pharmacists are able practise to their full scope, underpinned by the necessary support for professional practice, education and training.”

A/Prof Sim also reflected on the importance of the funding measures which will increase accessibility of care.

“PSA welcomes the federal government’s investment in women’s health, funding 250,000 Australian women with concession cards to access treatment for UTIs and oral contraception from their local pharmacist without an out-of-pocket consultation.

“We look forward to working with government, consumers and other stakeholders to implement this measure as soon as possible, ensuring that all women can access care when and where they need it.

“PSA also acknowledges the historic investment in the PBS, ensuring the cost burden of medicines is eased and more Australians can afford their medicines.

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Some positives but overall not enough

People with Disability Australia

People with Disability Australia (PWDA) welcomes the announcement of $364.5 million in tonight’s budget funding for foundational supports for people with disability.

While this safeguards previous budget commitments and provides a modest injection of additional funding in future years, urgent clarity is needed on how these supports will be secured for the long term.

“Seeing Foundational Supports in the budget is important. But we need more detail on how a long-term agreement will be struck with the states and territories. These supports – outside of the NDIS – are critical for people with disability to live independently and be part of our communities, especially for those who have been exited from or never had access to the Scheme,” said PWDA Deputy CEO Megan Spindler-Smith.

PWDA is concerned that, without a national agreement, these essential supports will never be delivered or risk becoming subject to political cycles and ongoing budget uncertainty.

“We can’t be left holding our breath every time a budget is handed down, wondering whether these supports will be developed or still exist. People with disability deserve the security of a long-term, legislated commitment from federal and state and territory governments to a Foundational Supports framework because the NDIS cannot be the only lifeboat in the ocean. Long-term investment in these supports isn’t a risk, it will change lives and reduce strain on other government systems,” said PWDA Board Director Steph Travers.

While the budget includes some investment in foundational supports, PWDA says it does not reflect the urgent, targeted action needed in areas where people with disability are consistently overrepresented and deeply affected – such as housing and homelessness, family and domestic violence and disaster preparedness.

“In general, we’re feeling invisible in the mainstream budget. Yes, there’s funding under the NDIS and Foundational supports but we’re missing from areas where the Disability Royal Commission identified change is most needed. That is what happens when the reform roadmap from the Royal Commission is still missing in action,” said Ms Travers.

“Safe, secure and affordable housing has been the focus of this budget but the word accessible is missing. Housing isn’t safe or secure for people with disability unless it is accessible. We’re at increased of homelessness and housing insecurity and yet we’re nowhere to be seen in these measures.”

PWDA also raised concerns that while the budget has some positive measures for women, women and non-binary people with disability – who are more likely to experience family and domestic violence – are missing in action.

“We’re being treated as a ‘diversity footnote’ and not a targeted population with the funding to match.  This is a big miss. If measures don’t name or focus on our community they won’t work for us,” Ms Travers said.

PWDA has also said the same for the lack of prioritisation of people with disability in increased funding for disaster preparedness, responses and recovery which will continue to put lives at risk.

“We know people with disability are more likely to be impacted during disasters, yet we continue to be left out of preparedness, response and recovery strategies. Prioritising our needs is not only good for us—but for emergency services, communities and responders too. Ensuring people with disability aren’t left behind is good for everyone,” Mx Spindler-Smith said.

“There is a real opportunity to use tonight’s announced funding to close these gaps—and to embed the curb-cut effect. What’s good for people with disability is good for everyone but we need an explicit commitment and that didn’t happen tonight.”

PWDA remains nervous about the future growth forecasts of the NDIS with further budget savings predicted.

“The NDIS is a lifeline. Our community has been worried about its future. In light of the drastic impact growth reductions have had on our community we need clarity on how these savings will impact our supports and lives,” said Mx Spindler-Smith.

“We are pleased to see supplementation for independent disability advocacy and support for NDIS Appeals—these are critical services, especially in the context of the reforms we’ve seen over the past 12 months.”

PWDA will continue seeking clarification on issues of importance to our community including:

• Ongoing disability advocacy funding
• Co-design commitments in all reform areas
• Reform of the Disability Discrimination Act and progress toward a national Human Rights Act
• Support pathways and funding for psychosocial disability.

The 2025 Federal Budget has delivered some foundational support—but not the funding, roadmap or recognition our community needs and deserves in light of the findings of the Disability Royal Commission. As we head into a federal election, people with disability will be watching.

“With 5.5 million people with disability in Australia—and millions more family, friends and allies—we are a powerful voting bloc. This budget shows how far we still have to go. We must be a priority, not just a footnote,” said Ms Travers.

PWDA is calling on all political parties and candidates to make clear, measurable commitments to our rights and inclusion, including:

• A long-term agreement for nationally consistent foundational supports
• Investment in accessible housing and targeted responses to family and domestic violence and disaster preparedness and responsiveness
• Full funding and safeguarding of the NDIS and disability advocacy
• Reform of disability rights laws and a Human Rights Act.

“This budget reminds us why explicit commitments matter. We will take this message to every candidate, in every electorate—because we decide elections, and we expect to be a priority,” said Ms Travers.

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Support for diverse communities

AMES Australia

Migrant and refugee settlement agency AMES Australia has welcomed measures announced by the federal government in its 2025 budget which provide cost of living relief, support for diverse communities while promoting social cohesion and maintaining Australia’s commitment to resettling refugees.

CEO of migrant and refugee settlement agency AMES Australia also welcomed budget measures that supported access to healthcare, especially for women, as well as cost of living relief for vulnerable families and communities.

“We welcome the measures in the budget that support migrants and refugees and their communities, who are among the most vulnerable to cost of living pressures and barriers to accessing healthcare,” Ms Scarth said.

“The government’s investment in extending bulk billing and keeping medicines affordable will be welcomed by the communities we work with and support.

“The modest tax cuts delivering $268 a year to families and the extension of power bill relief, saving households $150 a year, will also have a positive impact,” she said.

Ms Scarth said the health measures in the budget would be felt in diverse communities.

“We know that people from diverse communities can struggle to access healthcare, so the $8.5 billion boost to Medicare aimed at extending bulk-billing target of nine out of ten GP visits by 2030 is welcome,” Ms Scarth said.

“Also welcome is the $650 million in the budget for urgent care clinics and the $573 million for women’s health. The measure to limit the costs of prescriptions on the Pharmaceutical Benefits Scheme to no more than $25 will help many families.

“The women’s health measures are particularly important because they focus on areas such as contraception, endometriosis and menopause care,” she said.

AMES Australia also welcomed the $178.4 million investment in the budget over five years to strengthen social cohesion, including $10 million for independent multicultural media and $44.8 million in grants for community projects.

The budget also commits $21.4 million to strengthen support for victim-survivors of sexual violence, which builds on existing programs aimed at improving access to critical legal and non-legal support for victim-survivors.

And it allocates funds to maintain Australia’s world-leading refugee programs.

“The budget maintains Australia’s commitment to settle 20,000 refugees each year at a time when many countries are closing their borders to those fleeing war or persecution, and while an increasing number of global conflicts are driving record human displacement,” Ms Scarth said.

“Overall, the budget is inclusive. It recognises that when people feel they are valued members of society, there is a dividend in stronger social cohesion and a stronger society,” she said.

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Rural and remote Australians need more clarity

Australian College of Rural and Remote Medicine

While the 2025–26 Federal Budget delivers some welcome investments in healthcare, the Australian College of Rural and Remote Medicine (ACRRM) is urging all political parties to step up and prioritise rural, remote, and First Nations healthcare in their election platforms.

ACRRM President Dr Rod Martin says tonight’s Budget contained no surprises, reinforcing the need for a clear commitment from all sides of politics on how they will ensure funding reaches the communities that need it most.

“With an election on the horizon, this is the time for political leaders to put forward concrete plans that will make a real difference in rural and remote Australia,” Dr Martin says.

“The government has committed approximately $8.5 billion in healthcare funding over four years, and the Liberal Party of Australia has said they’ll match it – but there is little clarity on how much will directly benefit rural and remote Australians – they deserve detail and ACRRM expects it.”

Key budget highlights include:

• $7.9 billion in Medicare payment, with increases for standard consultations, to up to $86.91 in remote areas.
• A Bulk Billing Practice Incentive Program
• $1.8b to fund public hospitals and health services in 2025 – 2026
• $689 million to be spent over four years to reduce the cost of most medications listed on the Pharmaceutical Benefits Scheme.
• $573m for women’s reproductive health and menopause

“The sweetener is a $265.2 million investment to expand the pipeline of future General Practitioners (GPs) and Rural Generalists (RGs), supporting ACRRM’s ongoing call for at least 500 Rural Generalist training places annually,” Dr Martin says.

“We will be watching closely to ensure these training places are allocated where they are most needed, supporting the growing demand for ACRRM training, addressing the greatest and most urgent workforce shortages, and improving healthcare for people living in rural and remote communities,” Dr Martin says.

Despite these investments, Dr Martin says the Budget fails to address critical gaps in rural healthcare, including the ongoing closure of rural maternity services.

“The latest data from the Australian Institute of Health and Welfare shows that nearly 80,000 women give birth outside Australia’s cities each year,” Dr Martin says.

“At the same time, reports of rural maternity unit closures continue to emerge from all corners of the country.”

“Each closure weakens health in rural and remote communities just a little bit more.”

“There has been no commitment to turn this around.

“Targeted funding is desperately needed to attract and retain the rural maternity workforce, including Rural Generalists skilled in obstetrics and anaesthetics, to ensure women in rural and remote communities can access safe, high-quality maternity care close to home.

“We would also like to see RG-specific MBS item numbers to incentivise and support key specialised services in rural and remote locations that are currently grossly underserved.

“ACRRM will continue to advocate for a Rural Health Service Providers Infrastructure Support Fund to address critical gaps in essential infrastructure, such as accommodation and childcare. “Investing in these areas is key to making rural communities more liveable, sustainable, and attractive to healthcare professionals and their families.”

The College will now turn its attention to the upcoming election.

“Rural, remote and First Nations people deserve more than just broad healthcare funding announcements. “They need real solutions that ensure they receive quality, accessible and affordable healthcare that is sustainable and delivered as close to home as possible.”

The Federal Budget for 2025-26 is a mixed bag for rural, regional and remote Australia in terms of funding for healthcare. While certain aspects of the budget benefit rural populations, there is a lack of a targeted strategy to address the unique health challenges these communities face.

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More needed for rural health

National Rural Health Alliance

The National Rural Health Alliance (NRHA) acknowledges the contribution of rural populations to Australia’s economy in many areas including exports, tourism and agriculture. We remain hopeful that rural Australia will not be overlooked and urge all parties to consider the needs of these communities and their major contribution to Australia’s economic wellbeing in the upcoming Federal election.

“We are encouraged to see some of the Federal Government’s pre-election healthcare promises reflected in the 2025-26 Budget,” said NRHA Chief Executive Susi Tegen.

“We welcome the $8.5 billion investment to strengthen Medicare, which includes funding for an additional 18 million bulk-billed GP visits per year, 400 nursing 400 scholarships, and expanded GP training opportunities.

“However, the benefits are mostly for city-based and corporate practices that have higher throughput. Not all rural practices are able to bulk bill every patient due to the depth, breadth and complexity of services provided and the higher cost-of-service delivery.

“We call on the government to commit to ongoing Medicare reform, flexibility in funding and policy for thin and failing markets. This will ensure all rural healthcare providers including general practice, pharmacy and allied health services are able to sustain their multidisciplinary practices to meet population health need.”

Ms Tegen also highlighted the $689 million pledge to reduce the maximum cost of many medicines listed on the PBS from $31.60 to $25. “This is good news for rural, regional and remote populations who are already facing financial pressures,” she said.

There are also some positive measures to help Close the Gap in Indigenous health by increasing the availability of culturally safe and qualified mental health supports and building the First Nation’s health and medical workforce.

We welcome the availability of more university medical places focused on primary healthcare, and the previously announced 100 Commonwealth Supported Places from 2026 increasing to 150 per year by 2028.

With a large increase in health spending overall in this Budget, we remain concerned that rural and remote Australia will not receive an equitable share, despite making up 30% of the Australian population.

The NRHA remains disappointed by the lack of dedicated rural funding and of a comprehensive National Rural Health Strategy. Such a strategy would coordinate Commonwealth, State, and Territory investment in health, disability and aged care service delivery for rural Australia. Additionally, NRHA continues to call for the establishment of a National Rural Health Fund to support block and infrastructure funding which includes but is not limited to health facilities, housing and childcare, tailored to rural clinician and health student needs.

Rural, regional and remote Australia already has worse health outcomes and die up to 13.6 years earlier than those in urban areas. Almost 18,500 Australians still lack access to essential primary healthcare services within an hour’s drive from their homes. Despite these stark disparities, the annual healthcare underspend in rural Australia remains $6.55 billion.

“With the Federal election on the horizon, it is not too late to prioritise rural health. We owe it to the 7.3 million people who live and work in those communities,” said Ms Tegen. “We call on all political parties to commit to delivering specific health packages for our rural communities as part of their election campaigns. Rural Australians are integral to the nation’s socio-economic health and wellbeing. Without them, the rest of the nation’s economic health hangs in the balance.

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Funding reform and rural focus missing

Rural Doctors Association of Australia

While the Federal Budget is a ‘headline grabber’ in terms of overall investment in healthcare, it is a missed opportunity for much-needed reform of health funding arrangements…and it lacks focus on the big measures needed to boost access to rural healthcare, the Rural Doctors Association of Australia (RDAA) said today.

“The health funding announcements made by the Federal Government no doubt look very appealing to voters, and for some patients they will make healthcare more affordable – but there’s a lot that should have happened in this pre-election Budget that hasn’t,” RDAA President, Dr RT Lewandowski, said.

“There is no real reform of health funding to set up the system for a more sustainable future – and there is no targeted investment to improve access to healthcare for those living in the bush.

“While cost of living relief in the healthcare sector is welcomed, it is not sustainable in the long-term.

“The expansion of the bulk billing incentive will mainly support general practices that have high throughput of patients through relatively short consultations, or services that already 100% bulk bill, like many Aboriginal Medical Services (for which this funding boost is much-needed and welcomed).

“But for many rural general practices, 100% bulk billing will be virtually impossible. Patients at these practices generally need longer consultations due to more complex health needs, and minor procedures are often also provided in the practice.

“This is why for patients in rural and remote Australia, billing arrangements at their local practice will be unlikely to change significantly.

“The expansion of the tripled bulk billing incentive will relieve some financial pressure on practices that were already bulk billing an additional group of patients, and it may support some increased bulk billing for patients under financial pressure and potentially slow out of pocket expense growth for other patients.

“However, not all rural practices will be able to provide bulk billing to all their patients, and the expansion of bulk billing will only apply to the consultation (not additional services like in-practice procedures or other diagnostics).

“While rural doctors would love for it to be true, Government messaging that ‘you will only need your Medicare card when you go to the GP’ is unfortunately not going to be the case for many patients, particularly in the bush.

Dr Lewandowski said while the Budget includes 400 more GP training places – 200 next year, and an extra 100 places each year for two years after that – only 7% so far have been allocated specifically for rural or remote settings.

“This is concerning, as RDAA has been asking for 200 extra Rural Generalist (RG) training positions to meet growing demand” he said. “As an example, around an extra 90 junior doctors applied this year and last year to the Australian College of Rural and Remote Medicine (ACRRM) to undertake RG training – that is, 90 additional applications over and above the annual training positions ACRRM is funded by the Government to provide.

“We need to be making hay while the sun shines. At least half of the additional 200 positions for next year should be allocated immediately to Rural Generalist training – as well as half of all new training positions in future years. It’s a no brainer.

“On the positive side, we welcome the Government’s decision to better support junior doctors who have to leave the hospital system to undertake GP training, by providing them with an incentive payment and helping ensure they are receiving entitlements that are more in line with those provided as a salaried hospital employee. This will make it easier for more young doctors to choose to make the move across to GP training.

“We also welcome the provision of additional Commonwealth supported medical school places, demand driven places for First Nations students to study Medicine, and extra places for junior doctors to undertake rotations in general practice – helping them to experience the rewarding nature of a career in general practice.

“But the positives are generally outweighed by the negatives or the ‘shoulder shruggers’,” he said.

“For example, while we have seen an extra $658 million committed to open another 50 Urgent Care Centres, there has been no funding reform offered to better support rural doctors to provide after-hours care to their communities, nor reform to boost the number of GPs across the country providing after-hours services until 9pm.

“We also need to simplify the arrangements – and remunerate rural doctors fairly – for 24/7 on-call rosters that integrate general practice and hospital after-hours care – because in rural settings, the same doctors generally work in both the general practice and hospital.”

RDAA is urging Labor and the Coalition to ensure rural and remote healthcare receives significant focus in the lead-up to the Federal Election.

“We need to get rural health funding right, and we need to see intent from our future governments to deliver meaningful funding reform to boost access to healthcare for rural and remote Australians,” Dr Lewandowski said.

“We need a National Rural Health Strategy to drive this reform, bring all the pieces together, and ensure there is a focus on rural and remote healthcare in any health measures going forward.

“We also need to be doing everything we can to build access to healthcare in many rural and remote communities, as this is the biggest challenge. If there is no GP, no allied health or local pharmacy in their community, then all the healthcare affordability enhancements in the world won’t help rural and remote patients.”

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Preventive care needs more focus

Exercise and Sports Science Australia

The nation’s peak exercise body has welcomed the strong focus on health in the 2025-2026 Federal Budget but says greater investment in preventive measures is urgently needed to keep Australians healthier and out of hospital.

Exercise and Sports Science Australia (ESSA) CEO Danielle Smith said while the federal budget shows healthcare is a top priority for the Government, preventive health funding received only $132 million for 2025-2026.

The budget reinforces the Labor Government’s commitment to a range of important health initiatives, including an additional $8.5 billion for Medicare bulk billing, $793 million for women’s health, $644 million for urgent care clinics, and $135 million for digital mental health support, among others.

“We welcome the Federal Government locking in these policies and funding for future years,” Smith said.

“However, as the peak body representing some of the leading professions in allied health and preventive healthcare, we were surprised there were no new initiatives to keep Australians healthier for longer and out of the over-burdened acute care public health network.”

Smith said greater investment in preventive health would improve lives and save taxpayers money.

“Federal Treasury has confirmed every dollar spent in preventive health care saves $14 in other health treatment. We strongly urge this Government and the opposition to review their investment in preventive healthcare,” she said.

ESSA has also outlined three key priorities they would like to see on the agenda for the upcoming election:

The removal of GST from exercise physiology, which remains subject to the tax despite exemptions being available for other medical and allied health services.

Funding the integration of Accredited Exercise Physiologists (AEPs) into mental health care provided in hospital and community settings. AEPs deliver evidence-based exercise interventions that effectively reduce symptoms of anxiety, depression and stress, while boosting mood and wellbeing.

Fund $400 Healthy Living Vouchers for one million vulnerable Australians to redeem each year with an AEP, Accredited Exercise Scientist (AES), or other suitable allied health professional.

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Medical students disappointed

Australian Medical Students’ Association

The Australian Medical Students’ Association (AMSA) objects to the failure of the 2025-2026 Australian Federal Budget to take into consideration key issues in the health workforce.

“The future doctors we need most are being priced out…students from backgrounds that need the most support are more likely to work rurally, in lower socioeconomic areas and in general practice. The evidence is clear from both an equity and workforce perspective,” says AMSA President Melody Ahfock.

The 2025–26 Federal Budget commits to expanding medical student and GP training positions but fails to address the true drivers of workforce maldistribution as outlined in the National Medical Workforce Data Strategy.

Without implementing evidence-based planning, specialty bottlenecks and rural workforce shortages will worsen, particularly in low-income, rural and remote areas where clinicians face isolation, poor resourcing and limited career opportunities.

Alarmingly, no action has been taken to support students from these regions – despite being four times more likely to return and serve their communities – leaving a glaring gap in building a sustainable, equitable health workforce.

“Without financial support, it is impossible to get through the medical degree. Medical school faculty actively discourage students from working, making participating in medical education and affording basic necessities a dream that is out of reach for those without other means.” says Raener Miller, Vice President External of AMSA.

The Australian Government has recognised the impact of cost of living on students undergoing placement; in 2024, the Commonwealth Prac Payment scheme was introduced to alleviate cost of living expenses for nurses, teachers and social work students. Disappointingly, medical students have still not been included in this scheme.

AMSA advocates to highlight the unique difficulties of medical school placement. Medical students are required to undertake over 2000 hours of placement at a full time capacity and are required to study for more weeks per year than the average university student.

We acknowledge that uncapping Commonwealth Supported Places for First Nations students is a step in the right direction. But without commitment to financial, social and cultural support during the medical degree itself, this endeavour is futile. Aboriginal and Torres Strait Islander students represent 4.2% of all medical students at entry, but only 2.3% at graduation, demonstrating the need for more action beyond just increasing student positions.

AMSA welcomes the new investments in:

• Creating the future primary care workforce of Australia through increased exposure and incentives for junior doctors to choose general practice.
• Alleviating healthcare related costs of living by funding the Bulk Billing Practice Incentive Program and reducing the maximum cost of medications included in the Pharmaceutical Benefits Scheme to $25.
• Women’s health and wellbeing through subsidisation of life-saving reproductive health medications and addressing gender-based violence.

AMSA calls upon the Federal Government to:

• Include medical students in the Commonwealth Prac Payment scheme and invest in the future of healthcare.
• Address healthcare distribution inequality by funding the recommendations from the National Medical Workforce Data Strategy and create an independent health workforce agency.

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Good news

Australian Nursing and Midwifery Federation

The Australian Nursing and Midwifery Federation (ANMF) welcomes prioritised funding in the Budget for health and aged care including: $8.5 billion to strengthen Medicare; $2.6 billion for wage rises for aged care nurses; $1.7 billion for the nation’s public hospitals; a pipeline of new Urgent Care Clinics and a landmark $573 million women’s health package.

The ANMF also applauds the Albanese Government for tackling cost of living pressures by reducing the cost of medicines under the Pharmaceutical Benefits Scheme (PBS); $17 billion in tax cuts for workers; an extra 400 scholarships for nurses and midwives; extending access to childcare; slashing student HECS-HELP debts by 20 percent; providing 100,000 fee-free TAFE places and $150 in energy rebates each quarter.

“The Budget is full of good news for our members working on the frontline of health and aged care,” ANMF Federal Secretary, Annie Butler, said.

“We welcome the Government’s continued support of the aged care workforce by funding a wage increase for registered nurses and enrolled nurses, in-line with the Fair Work Commission’s final determination in the historic work value case. It will certainly help with our members’ everyday cost-of-living challenges and retain and recruit more nurses into the sector by offering better pay and working conditions, which in turn, will result in safer, higher quality care for older Australians.

“In these tough economic times, it is heartening that the Government has again committed to investing in Medicare reforms, expanding bulk-billing incentives, meaning that 9 out of 10 GP visits will be bulk-billed by 2030, establishing 50 new Urgent Care Clinics across the country and cutting the price of a script to $25 under the PBS. A list of new medicines, including oral contraceptives and menopausal hormone therapies, has also been listed on the PBS, making it cheaper and more accessible for women of all ages to meet their health needs.

“With cost of living and housing affordability identified by ANMF members as their big concerns, it’s encouraging that we have measures aimed at putting downward pressure on prices. Nurses and midwives will benefit from improved childcare subsidies, increased public school funding, quarterly energy rebates and the extension of the Help To Buy scheme, making it more accessible for nurses and midwives looking to buy their first home, as part of the Government co-ownership offer.

“As the country heads to the election in May, the ANMF looks forward to working with the Government to deliver on these Budget investments and to build a stronger and sustainable health and aged care workforce that can improve care, reduce waiting times and provide better health outcomes for the community.”

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Making health a priority, rather than health reform

Australian Primary Health Care Nurses Association (APNA)

This year’s Federal Budget makes clear investments in health.  However, according to APNA Chief Executive Officer Ken Griffin, it invests in the status quo rather than responding to the recommendations from the extensive health reform reviews conducted over the past three years

APNA welcomes Labor’s commitments to the wages of nurses working in aged care as well as the significant investment in general practice, paid nursing student placements and additional items for nurse practitioners and midwives.

“However, these do not seek to deliver any of the much-needed reforms recommended in the ‘Unleashing the Potential of our Health Workforce—Scope of Practice Review.”

“Nurses must be part of the solution. Enabling nurses to work to their full scope of practice improves care, reduces waiting times, and improves health outcomes.” Mr Griffin said.

“Simply boosting general practice funding won’t address the challenges of access to health care for Australians who do not have access to general practice or resolve the challenge of timely access to hospitals and emergency departments.”

APNA will continue to work with all political parties to seek reform of Australia’s health system.

Nurses and midwives make up 54% of Australia’s health workforce.  They are safe, trusted and the best geographically spread health workforce. Using them to their full scope of practice will increase access to high-quality care for all Australians.

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Scope of practice reforms remain critical

Australian College of Nursing

The Australian College of Nursing (ACN) believes the significant investment in health in tonight’s budget will improve patient access to the healthcare services they need, where and when they need them. It will also pave the way for better use of nursing skills and leadership when ongoing review recommendations are implemented.

ACN CEO, Adjunct Professor Kathryn Zeitz FACN, said the full benefit of the new health funding would only be realised when the nursing workforce is allowed to work to the full scope of their education, skills, and ability.

“This means implementing the recommendations of the Unleashing the Potential of our Health Workforce – Scope of Practice Review,” Adjunct Professor Zeitz said.

“All parties and candidates at the upcoming election must support and commit to implementing the Scope of Practice Review recommendations to ensure all Australians, no matter their means or where they live, can get the care they need when they need it – not at the end of a long queue or having to travel hundreds of kilometres.

“Nurses and midwives are the solution to relieving health workforce pressures, especially in rural, regional, and remote communities, where there are no local doctors or where doctors are retiring or leaving town for other reasons.

“There must also be support for genuine multidisciplinary teams – GPs, nurses, nurse practitioners, midwives, allied health professionals – working together under new blended payment systems to improve patient access to care.

“Nurses working in hospitals and aged care also need more support.

“ACN wants to see funding for nurse-led clinics in more locations, support for nursing leadership development, support for advanced practice nursing roles, and strategies to better manage nurse workplace wellbeing and retention.

“These reforms will provide improved career pathways for nurses and midwives, keep nurses in nursing, and attract other nurses back to the profession they love.

“The demand for quality accessible health care in Australia is at record levels and will only increase with rising rates of chronic and complex conditions, an ageing population, deteriorating health indicators, unmet Close the Gap targets, and workforce shortages across many health professions.

“Tonight’s big boost to health funding will pay big dividends in the coming years and decades if nurses, nurse practitioners, and midwives are supported to work to their full capacity to provide the care that communities across the country are crying out for,” Adjunct Professor Zeitz said.

ACN commends the following budget measures:

• Expansion of bulk-billing incentives to all Australians and introduction of a new Practice Incentive Payment for practices that commit to universal bulk-billing;
• Cheaper PBS medicines;
• 50 additional Medicare Urgent Care Clinics;
• Increased hospital spending;
• Funding for women’s healthcare, including a new PBS listing for menopausal hormone therapy and new clinics for endometriosis treatment;
• Investment in digital mental health services, with free services for vulnerable groups,
• Pay rises for aged care nurses;
• Cost-of-living relief for millions of Australians, as cost-of-living pressures have an impact on people’s physical and mental health.

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Investment applauded

Royal Australian College of General Practitioners

Tonight’s Federal Budget recognises the importance of accessible and affordable general practice care for all Australia.

With more than 22 million Australians choosing to see a specialist General Practitioner every year for their essential health care, the budget’s unprecedented investment to grow the GP workforce and additional Medicare funding is critical.

Royal Australian College of GPs (RACGP) Vice-President, Dr Ramya Raman, said: “We applaud the size of the investment in general practice and Medicare – $8.5 billion – after decades of underinvestment.

“The previously announced election commitments and now the Federal budget make it clear that both the Government and the Opposition recognise the value of general practice care.

“The RACGP applauds the budget’s significant injection of funding into the GP workforce, from the expansion of GP training to the important GP initiative which matches the wages, and parental and study leave entitlements of GP trainees to those of hospital-based doctors.

“These initiatives will mean more Australian communities can access GP care close to where they live, removing barriers to junior doctors choosing a career in general practice and boosting the GP workforce across Australia,” Dr Raman said.

“The $793 million women’s health package, which covers key initiatives from our plan such as increased rebates for Intrauterine devices (IUDs) and implants, menopause health assessments, and more funding for endometriosis and pelvic pain, is a crucial step towards health equity.”

RACGP President, Dr Michael Wright, said: “While it’s clear general practice is central in this year’s Budget, we are concerned the plan, which has also been backed by the Opposition, won’t deliver the bulk-billing rates they expect because patient rebates are still too low to cover the cost of care.

“There is a missed opportunity here to properly fund patient Medicare rebates to ensure affordable access to general practice care for all Australians.

“That’s why we’ve been saying for a long time that Medicare funding should be targeted to those who need it most, including the 61% of Australians living with chronic and complex illnesses.

“Our plan for accessible, affordable general practice care for all Australia calls for a 25% increase to patient rebates for mental health, which are one of the most common consults, and a 40% increase to patient rebates for longer consults.

“The RACGP is committed to advocating for accessible, affordable general practice care for all Australia, because there is no substitute for the high-quality care you get from a GP who knows you and your history.”

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Medicine shortages will continue

Royal Australasian College of Physicians

Funding in the Federal Budget for cheaper medicines will be good for Australians’ health and hip pockets, but the peak body for physicians warns widespread medicine shortages will continue without funding to address them.

The budget also built on the Government’s Future Made in Australia agenda, and Royal Australasian College of Physicians (RACP) President, Professor Jennifer Martin, said locally-made medicines should form a key part of this.

“There are currently more than 400 medicines in shortage in Australia, including intravenous fluids and medicines for diabetes and ADHD,” Professor Martin said.

“At best shortages create an inconvenience and another appointment with the doctor, at worst, patients are rationing their medication or going without, and health systems are spending precious time and resources finding alternatives.

“It was great to see $20 million announced recently for more local manufacturing of intravenous fluids, but we need more of this kind of investment.

“We also need investment in the information and communication systems that keep doctors up-to-date on medicine availability, and it is disappointing that was not contained in this budget. Doctors shouldn’t be forced to make prescribing decisions in the dark.”

Professor Martin said the RACP was also disappointed there was not more in the budget to fix the shortage of medical specialists, and address the health impacts of climate change.

“We saw no incentives for specialists to practice in the rural and regional communities who are crying out for them, nothing on distributing specialists where they are needed most, nor wellbeing incentives to address burnout,” Professor Martin said.

“We also need sufficient funding for the National Health and Climate Strategy to ensure health systems can keep up with health problems caused or exacerbated by extreme heat and disasters.

“This budget contained many good things for our nation’s health system, but more is needed to address medicine shortages, boost the specialist workforce and address the health impacts of climate change.”

On other Budget announcements, the RACP welcomes:

• $1.8 billion funding boost to public hospitals – which serve as the training grounds for medical specialists and will boost the future specialist workforce
• $228.7 million to continue modernising My Health Record and support the digital health reform agenda
• $5.7 million to extend funding to ensure sustainability of Australia’s electronic prescribing infrastructure
• $48.2 million over four years for an additional 100 medical Commonwealth Supported Places (CSPs) per year from 2026, increasing to an additional 150 CSPs per year from 2028
• Uncapping the number of medical CSPs for First Nations students, to support the growth of more First Nations doctors
• $3.5 million to extend the Deadly Choices Program – which focuses on increasing uptake of free annual 715 health assessments by First Nations peoples – until June 2026
• $9.2 million to improve detection, monitoring and management of acute rheumatic fever and rheumatic heart disease in remote communities
• $364.5 million to support people with disability who fall outside the National Disability Insurance Scheme
• $42.2 million for the National Autism Strategy and Action Plan implementation
• $426.6 million for guaranteed eligibility at least 3 days per week subsidised early childhood education and care – universal access to early childhood care for all 3 year olds has been a key call of the RACP’s Kids Catchup campaign.

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Strong support

Health Services Union

The Health Services Union (HSU) has strongly endorsed the Albanese government’s record investments to strengthen Medicare in this year’s Federal budget, while noting a missed opportunity to provide cost-of-living relief for disability support workers.

Tuesday’s budget locked in a 12 percent increase in public hospital funding — a record increase of $33.9 billion in Australia’s public hospitals — and $644 million for 50 more Urgent Care Clinics to relieve pressure on the acute care system.

Meanwhile, an $8.5 billion boost for Medicare will make nine in every 10 GP visits bulk-billed, and make reproductive health cheaper for 300,000 women.

This Budget is groundbreaking. Even so, missing from the budget is an investment in better pay and conditions for disability workers with the sector facing an acute workforce crisis.

The HSU is campaigning for a new workforce compact for disability workers which would facilitate a desperately needed pay rise, with one in four disability workers considering leaving the sector.

The HSU is also calling on a re-elected Albanese Government to expand paid placements to other allied health professionals, beyond social work, nursing and teaching.

HSU National Secretary Lloyd Williams said:

“Labor has a real plan to make health cheaper for everyday Australians, cut waitlines for critical health services, and reduce the gender pay gap, all while taking the pressure off frontline health workers.

“But there’s unfinished business, with disability workers desperately needing a fair pay rise to stop them leaving the sector in huge numbers.

“We’ll keep working with this Government to ensure it has a strong Allied Health Workforce Strategy, and raise wages in the NDIS above the minimum through new bargaining laws.

“There is a stark contrast with the Liberals who are planning massive cuts which will take workers backwards with rampant gig work and winding back workers’ opportunity to win fair pay rises.

“Peter Dutton’s cuts to services could bring the health system to its knees and reignite widespread rorts across the NDIS.”

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Pluses, and minuses

COTA

The Federal Budget will help deliver some crucial cost of living relief for older Australians, including energy relief for all households and a tax cut for around 4.6 million people over 50 years, but older Australians will need to see more from our politicians during the upcoming federal election campaign, COTA Australia says.

COTA Australia – the leading advocacy organisation for older people – Chief Executive Officer, Patricia Sparrow, said Federal Budget measures such as a $150 energy subsidy over six months, an average tax cut of approx. $500 for people over 50 paying tax, expanding GP bulk billing to all Australians and giving people cheaper medicines, will provide some practical relief for many older people.

“As a whole, the Federal Budget recognises that Australians, including older Australians, are really feeling the pinch of the cost of living crisis and takes steps to alleviate some of that pressure,” Ms Sparrow said.

“There are some crucial measures in this budget that will make a tangible difference to the lives of many older Australians, including the energy subsidy, tax cut for people over 50 and health reforms.”

However, Ms Sparrow the Federal Government needs to publicly confirm its intentions on freezing pensioner deeming at 0.25% and 2.25% beyond 30 June 2025.

“Deeming rates are used by government to estimate the amount of income pensioners earn from financial assets and can reduce the pension amount someone receives. Continuing to freeze deeming rates at current levels would go some way to meeting the increased cost of living pressures faced by people on lower and fixed incomes like those on the age pension.

Ms Sparrow said the Federal Government also missed an opportunity to include other key cost of living measures such as a Seniors Dental Benefit Scheme and called on all parties at the upcoming federal election campaign to deliver tangible measures that will help improve the lives of all Australians, including the growing population of older Australians.

“It’s disappointing that the Federal Government missed the opportunity to announce a Seniors Dental Benefit Scheme as part of this cost of living budget. It is an open opportunity for all parties to pick up this vital issue during the upcoming election campaign.

“Good oral health is important for people of every age, but for many Australians – including many older Australians – access to the affordable dental support they need is out of reach, even more so at this time when cost of living pressure are stretching financial resources to the max.

“We can’t afford to wait any longer for our politicians to realise that this is a health crisis that needs to be urgently addressed this election – not just for older people, but for people of all ages.”

Ms Sparrow said older Australians would have also liked to have seen additional measures in this budget such a seniors’ default NBN plan, targeted action to address ageism for the benefit of people of all ages, funding for more Support at Home packages to lower waiting times and more done to address housing affordability.

“We’re looking forward to politicians from all sides to make announcements during the federal election campaign on practical measures that will help support older people, and in turn people of every generation.

“The measures announced in the budget are welcomed, but it’s very clear that older people will expect to see more information on what our political parties will do to address the key issues facing people of all ages, including older people, in the coming weeks.”

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Action on dementia lacking

Dementia Australia

Dementia Australia welcomes the budget measures directed at monitoring dementia data nationally, implementing aged care reforms and making communities more inclusive for people with a disability, including dementia.

However, as the peak body, Dementia Australia is disappointed not to see funding that is urgently needed to reduce the impact of dementia, which will soon be the leading cause of death for all Australians.

Dementia Australia CEO Professor Tanya Buchanan said significantly more funding was needed to reduce the impact of dementia on all Australians of all ages.

“With an estimated 433,300 Australians living with dementia and an estimated 29,000 people living with younger onset dementia, dementia is the public health, disability and aged care challenge facing Australia,” Professor Buchanan said.

“The National Dementia Action Plan requires funding if we are to see it have an impact. The lack of funding to implement this Plan has a real impact on people living with dementia, their families and carers.

“Dementia Australia encourages all parties, independents and candidates to consider how they can support actions to reduce the impact of dementia.”

Dementia Australia has been calling for funding for three critical initiatives to reduce the impact of dementia for all Australians. They are:

*Launching a national conversation on dementia to raise awareness of the condition and to promote brain health.

*Establishing a team of dementia specialist navigators within Dementia Australia to improve service support and access.

*Building the capability of the workforce to provide care and support for people living with dementia with training.

“Dementia Australia is looking forward to working with the next government to improve the lives of people of all ages impacted by all forms of dementia,” Professor Buchanan said.

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Bolder reform needed

Australian Physiotherapy Association

The Australian Physiotherapy Association (APA) welcomes the continued investment in the nation’s health articulated in tonight’s Federal Budget.

In a budget framed as a plan for a “new generation of prosperity”, APA National President Dr Rik Dawson MACP said Australia’s healthcare system requires a bolder reform agenda.

‘While immediate funding commitments are important, Australia’s healthcare system is in urgent need of greater reform to deliver sustainable, evidence-based and equitable care that will improve outcomes for generations to come,’ Dr Dawson said.

Millions of Australians are living in pain, waiting for treatment – while physiotherapists remain underutilised and locked out of care pathways they are trained to lead.

“Budget night should remind us that healthcare is about more than dollars—it’s about access, prevention and patient-centred care. Without action on workforce reform and new models of care, funding alone won’t fix the system,” Dr Dawson said.

The APA’s Federal Election Statement outlines three key priorities for reform:

1.     Funded direct access to physiotherapy
2.     New care pathways for musculoskeletal conditions
3.     Greater investment in early intervention.

“Australians deserve faster access to effective care. Physiotherapy-led solutions are ready to scale and backed by evidence. It’s time to invest in smarter pathways that keep people well and out of hospital,” Dr Dawson said.

While the Treasurer acknowledged that “more bulk billing will mean less pressure on families” and confirmed record investment in Medicare, Australians still face long waits for diagnosis and treatment.

Unless the role of the broader healthcare workforce– including physiotherapists – is expanded, the full benefits of that investment will not be realised.

“We commend the government’s commitment to strengthening Medicare,” Dr Dawson said, “but Medicare must evolve. Enabling funded, direct access to physiotherapists is a pragmatic, cost-effective solution that improves outcomes and relieves system pressures.”

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Groundhog Day for allied health

Allied Health Professions Australia

Allied Health Professions Australia today expressed its disbelief that the second largest health workforce was once again ignored by the Albanese Government with no substantive measures announced in last night’s Budget.

AHPA Chief Executive Officer Bronwyn Morris-Donovan said the glaring omission of the allied health sector is disappointing given this Government’s initially ambitious health reform agenda.

“Last night’s budget is a return to the old-school thinking of single-discipline models of care. After three years of talk, the Government is still only funding doctors and nurses,” said Ms Morris-Donovan.

“While we welcome significant investment into Medicare and measures to grow the GP and nursing workforce, we question the single focus approach. We know that consumers with the most complex health needs benefit from wraparound multidisciplinary team care. There is nothing more disenabling to service innovation than incentivising only one member of the care team.

“Australian Institute of Health and Welfare data shows that 61% of the population live with at least one chronic condition. In a cost of living crisis, access to affordable primary allied health care is critical. Better utilisation and integration of allied health into primary care would ultimately improve access and outcomes for Australian’s living with chronic conditions.

“AHPA is further disappointed by the absence of expansion of the prac payments, especially when more than half of the allied health sector is in national workforce shortage, including medical radiation practitioners, optometrists and podiatrists. This Budget provides no support for allied health workforce initiatives and the National Allied Health Workforce Strategy remains unfunded.

“We remain committed to working with the Albanese Government but our 300,000 strong workforce and Australian consumers deserve better.”

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A positive step

Speech Pathology Australia

Speech Pathology Australia welcomes the Albanese Government’s Budget commitment to expand Medicare access to speech pathology care for children and young people with some severe speech and language disorders.

The Federal Budget’s $74.9 million investment from 2025-26 and $29.1 million per year ongoing is a positive step toward expanding Medicare-funded speech pathology for children and young people with some severe speech and language disorders. But it’s just the beginning.

We thank the Albanese Government for implementing this critical measure and urge all parties and candidates to commit to our federal election priorities:

✅ Expanding access to speech pathology services through Medicare.
✅ Supporting access to speech pathology services in early childhood education and care centres in areas of greatest socioeconomic disadvantage.
✅ Ensuring continued access to care by supporting speech pathologist recruitment and retention.

Find out more about the funding boost for speech pathology.
👉 https://bit.ly/4c4tc2k

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Allied health concerns

Occupational Therapy Australia

CEO Samantha Hunter said:

“Occupational Therapy Australia (OTA) is deeply concerned by the glaring omission of allied health in this year’s Federal budget. Once again, this budget highlights the alarming neglect of allied health, despite its critical role in Australia’s healthcare system.

“The Government claims it’s addressing urgent health needs, yet continues to ignore the allied health sector, leaving thousands of Australians struggling to access essential care.

“Shifting support for children with autism and developmental challenges from the NDIS to foundational services that are not yet established is reckless without adequate transitional arrangements. Families are left hanging by a thread, pushed to breaking point as state governments play political hot potato and schools scramble without funding, resources, or clear guidance.

“More than 1,200 NDIS participants each week are receiving distressing letters, demanding rapid reassessment of their eligibility, leaving nearly half facing their vital support being withdrawn. This budget offers no solutions – only deepening anxiety and uncertainty for families and practitioners.

“The government must urgently prioritise transitional funding to bridge this alarming gap, preventing vulnerable children from slipping behind at a critical stage of development.

“The health of Australia’s veterans is also being left behind in this budget. Veterans rely on essential allied health services for their mental and physical well-being, but low provider fees severely limit their access to care. Despite recommendations from the Defence and Veteran Suicide Royal Commission, the Government has failed to increase provider fees and address the barriers veterans face in accessing vital health services.”

“The workforce crisis among allied health providers, including occupational therapists, has reached breaking point, with occupational therapists facing worsening workforce shortages. Immediate investment is crucial. OTA calls for urgent funding of a national supervision program, extended placement support for occupational therapy students, and streamlined pathways for overseas-trained therapists to bolster this in-demand workforce.

“While OTA welcomes the Government’s intent to clarify responsibilities for foundational supports, the current reality is chaotic. Thousands of families with children who have autism and developmental challenges face immediate distress as supports have been hastily withdrawn. With no transitional funding provided and lack of clarity from federal and state governments on the road ahead, these children risk being abandoned by the system, and forced into uncertainty as governments pass the buck.

“OTA urgently calls for transitional funding to bridge this critical gap and protect vulnerable children and families from falling further behind.

“OTA urges the government to recognise the critical role allied health plays, move beyond short-sighted savings, and deliver meaningful, immediate investment into the workforce that underpins Australia’s healthcare future.”

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Missed opportunity on dental

The Australian Greens

“The budget was a missed opportunity to deliver real cost of living relief by getting dental into Medicare, and to pay for it by making the big corporations pay their fair share of tax, which would have delivered more help than tiny tax tweaks that are 15 months away.

“In a wealthy country like ours, everyone should be able to afford the basics – a home, food, and have access to world class health and education.

“Instead, many people are struggling to afford the essentials while one in three big corporations is paying no tax.

“Labor’s budget has delivered $56 billion in fossil fuel subsidies and $176 billion for wealthy property investors but failed to deliver the bold reforms needed to support people being smashed by the skyrocketing cost-of-living.

“The two new tax cuts announced by the Government will barely scratch the surface for people struggling to pay for food or rent, and won’t come into effect for 15 months, with low-income workers saving only 73 cents a day, which wouldn’t even cover one cup of coffee per week.

“Meanwhile, the Government’s previous stage three tax cuts delivered $4,500 in tax cuts for billionaires, with these new cuts increasing those savings to more than $5,000 for billionaires like Gina Rinehart and Clive Palmer.

“There are no increases to Job Seeker or Youth Allowance in this budget, meaning the more than one million on these income supports will remain in poverty. And the Government has forecast billions more in cuts to the NDIS.

“On housing, the Government has fixed some of the problems the Greens have highlighted in the Help to Buy scheme, but there is nothing new for renters, who didn’t even get a mention in the Treasurer’s speech.

“Climate and the environment got zero mention in the Treasurer’s speech as well. Perhaps this is not surprising as Labor has approved over 30 coal and gas projects in this term of Parliament alone and is gutting Australia’s environment laws.

“The Government is also continuing to pour billions of dollars more into nuclear submarines as AUKUS costs increase, with funding in this budget blowing out from $12 billion to $18 billion.

“Labor has also broken its promise on refugees, by failing to increase the humanitarian intake.

“In a sign that Greens’ pressure works, Labor did commit to adopting part of the Greens’ plan to see the GP for free, by tripling the bulk-billing incentive.

“Labor also locked in their commitment to wipe 20 per cent off student debt, a step towards the Greens’ plan to wipe it completely.

“Labor has also made a significant investment in women’s sexual and reproductive health, including cheaper contraceptives, more accessible menopause treatment, and investment in the maternal health workforce. This follows a Greens’ campaign including two Greens-initiated Senate inquiries.

“However, it is disappointing that rather than locking in that cost-of-living relief right now, Labor has used the cover of the budget to do a dodgy deal with Dutton to gut environment and climate laws.

“While everyone was focused on the budget, Labor and the Liberals have teamed up to ram through legislation in Parliament to gut our climate and environment laws making it easier for big corporations to trash our precious natural environment and approve more coal and gas.”

 

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Dull and timid

Independent MP Andrew Wilkie

“The Budget is a dull piece of work that again fails to make the bold reforms needed to address the great challenges confronting Australia and Australians. But at least it’s consistent, based as always on the political timidity and lack of vision shared by whichever major party has been in government in recent decades.

“All you need to do is hold the unusually flimsy budget papers to know there isn’t much in it. Sure, they have made some welcome changes here and there. Not least the additional cost-of-living relief in the form of more funding for bulk-billed health service incentives, student debt relief, energy bill concessions and steps towards universal childcare. There’s also the income tax cuts, but even they only really return bracket creep and unnecessarily also apply to high income earners. But what else would you expect ahead of the election?

“Sadly, the Government has again refused to make the single biggest difference they could for those struggling the most with the skyrocketing cost of living, which is lifting income support payments above the poverty line. And while there are some long-overdue health measures in the budget, what about doubling the Medicare GP rebate to genuinely encourage bulk-billing in communities like mine? What about addressing the housing crisis through much greater investment in social housing, homelessness supports, and tackling the tax breaks and incentives which skew the market in favour of investors? And for a Government that rode into power off the back of a climate election in 2022, there is a stark lack of further action now.

“If they were really brave, the Government could focus on fairness by means testing cost of living measures like the energy rebate, removing unfair tax concessions, implementing a super profits tax, and restoring the top tax rates for high income earners. But we all know that ahead of an election they wouldn’t touch any of that with a barge pole.

“As for Southern Tasmania, we do see confirmed support for the Icebreaker berth and Hobart Maternity Ward. Also notable is the $80 million for the Southern Outlet, all or at least most of which looks set to be spent within Clark. Then there’s a token $3m more for the captive breeding program of the Maugean Skate, a fiscal fig-leaf for a government who knows, today especially, they’re complicit in driving the skate to extinction.

“It’s worth remembering that the Opposition has no real plans to address the big issues either. In fact, it’s all too clear that the prospects for significant reform in Australia remain adrift in a major party policy vacuum.”

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Investments welcomed

Catholic Health Australia

Catholic Health Australia (CHA) has welcomed the Federal Government’s investments in healthcare announced in tonight’s Budget, praising significant commitments to Medicare, public hospital funding, and transparency measures aimed at reducing Australians’ out-of-pocket medical costs.

CHA recognises that the Government’s $8.4 billion Medicare investment represents the largest single injection of funding in the history of the universal healthcare system.

CHA particularly applauds the ambitious target of achieving a 90 per cent bulk-billing rate among general practitioners by 2030, alongside significant funding allocated to grow Australia’s general practitioner and nursing workforce.

“This investment in Medicare is a critical step toward addressing long-standing pressures on primary care services, as well as reducing the pressure on public hospitals,” CHA CEO Jason Kara said.

“It is also very heartening to see bipartisan support for enhancing access to affordable primary healthcare.”

CHA also supports the Government’s additional investment of $1.8 billion in public hospital funding as part of a “one-off funding boost” to maintain continuity under the National Health Reform Agreement (NHRA). This will be critical to ensuring the stability and sustainability of Australia’s hospital sector, particularly given escalating demands and workforce pressures.

“Public hospitals are under incredible strain. This additional funding will be essential to keep the lights on in the short term, however in the longer term we need to be leveraging private hospitals to improve public waiting times. CHA has put forward a range of measures and we look forward to working with the government on solutions,” Mr Kara said.

CHA strongly supports the Government’s $7 million investment in the Medical Costs Finder website, a policy CHA has long advocated for. This website is an essential tool in enhancing transparency around out-of-pocket expenses, and while it will not resolve all the issues, it represents meaningful progress in empowering patients to make informed healthcare choices.

CHA also commends the allocation of $784.6 million to reduce the maximum cost of medicines listed on the Pharmaceutical Benefits Scheme (PBS) from $31.60 to $25.00. This measure is expected to save Australians approximately $200 million each year, making essential medications more affordable for individuals and families. ​

CHA welcomes the Government’s previously announced firm stance on private health insurance payouts, with clear commitment to introduce regulatory actions if insurers fail to increase their payout rates. This initiative aligns closely with CHA’s advocacy for stronger measures — such as minimum payout ratios or linking premium increases directly to payout ratios — to ensure insurers deliver genuine value for their members.

“We commend the Government’s determination that these regulatory measures come at no cost to taxpayers. However, we reiterate our call for deeper structural reforms to ensure the sustainability of the private health sector,” Mr Kara said.

“Long-term viability of private health care necessitates the implementation of reforms such as the establishment of a National Private Price, addressing payment delays, reducing administrative burdens, and sustainably funding innovative care models like hospital-in-the-home.”

On aged care, CHA acknowledges the significant investments the Government has previously committed to, including funding the Fair Work decisions around aged care worker salaries and passing the Aged Care Act.

CHA urged the need for caution regarding the aged care reforms due to begin from 1 July 2025. Despite the significant investments in aged care over the past 18 months, CHA has warned that unresolved transition issues threaten the successful implementation of the new Aged Care Act.

“Providers continue to face significant uncertainty, and there remains an urgent need for the Department of Health and Aged Care to release critical implementation details such as co-contribution amounts,” Mr Kara said.

“The absence of a clear transition pathway for providers who will not be ready by the stipulated deadline poses real risks for older Australians reliant on aged care services.”

CHA further highlighted significant gaps in funding for the necessary expansion of the care management workforce, which is vital for a smooth and effective transition.

“The planned level of funding for care management is insufficient and increases risks to the transition process and the sector’s ability to support the needs of older Australians,” Mr Kara said.

Beyond healthcare and aged care, CHA welcomes targeted funding aimed at expanding access to palliative care services in specific areas. CHA continues to encourage progress towards universal access to high-quality palliative care, particularly in rural and regional Australia. CHA noted that investing in palliative care, especially home-based models, aligns closely with its mission-driven commitment to dignified, compassionate end-of-life care for all Australians, regardless of their location.

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Left behind

Mental Health Australia

The country’s peak mental health body, Mental Health Australia, is disappointed that mental health is missing from the Federal Budget.

The 2025-26 Federal Budget shows no commitment to improving access to mental health supports for the Australian community.

Australia is facing enormous pressures on our collective mental health and wellbeing. One in five people will experience a mental health condition in a given year, prevalence has doubled for young people in recent years, and up to 22 percent of five-year-olds are now showing vulnerability to mental health issues in their very first year of school.

“Despite the rising need for greater investment in mental health, this budget suggests that mental health is far from the front of this government’s mind” says Mental Health Australia CEO Carolyn Nikoloski.

“While there are some piecemeal investments, this budget seriously lacks the level of mental health reform and investment that the Australian community expects. Everyone in Australia should be able to access the mental healthcare they need, regardless of their income or where they live.”

Mental Health Australia welcomes the Australian Government’s broader investments to strengthen Medicare, boost the primary care workforce and cut the price of medicines.

However, without additional investments to make the mental health system more accessible and connected, the community will still not be able to access the supports they need.

“Currently, the affordability and accessibility of mental health support ends on the other side of the GP’s door. While there is a bold plan to get people accessing bulk-billed GP care, this does not go far enough for the 1 in 5 Australians facing a mental health challenge in a given year,” Ms Nikoloski says.

“We had hoped to see commitments to support people’s mental health following the Medicare bulk-billing investment. This remains a vital missing step that needs to be urgently addressed.”

With focus now inevitably shifting towards the upcoming Federal Election, Mental Health Australia will continue to pursue commitments from all sides of politics to deliver pathways to accessible, affordable mental health care at a time when Australia needs it most.

“We have made a bold pitch to parties and candidates to create free pathways to mental health care for everyone under 25. With mental health being the most common reason someone visits their GP, we need to ensure that families and young people can access mental health care as soon as they need it, particularly during a cost-of-living crisis.”

“With young people experiencing particularly stark increases in distress, we cannot afford to leave any barriers in their path to support and care,” Ms Nikoloski added.

In announcing the landmark Medicare investment, Prime Minister Albanese said that “people deserve ambition from their government.” This country now needs ambitious mental health investment to change the trajectory of mental health for a generation of Australians.

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Band-Aids for mental health

Royal Australian and New Zealand College of Psychiatrists

Psychiatrists say tonight’s Federal Budget once again offers band-aids for a mental health system on life support.

Dr Elizabeth Moore, President of the Royal Australian and New Zealand College of Psychiatrists (RANZCP), said:

“For over a decade, successive budgets have handed our mental health system crumbs while it starves of the basics. This budget is no different.

“Australia’s mental health crisis is peaking at the frontlines, with emergency departments overwhelmed with mental health presentations, private psychiatric hospitals closing and the workforce burning out under relentless demand.

“And yet, governments keep reaching for short-term fixes that do nothing to address the structural damage caused by debilitating workforce shortages and piecemeal funding.

“Despite this, the word ‘psychiatry’ has only been mentioned once in tonight’s Budget papers to refer to a pre-existing program. There has been no meaningful investment in growing the psychiatry workforce.

“It is particularly striking – especially as workforce shortages continue to bite and bring the system to its knees in parts of the country.

“Hand on heart, no government can say they’ve laid the foundations for a functioning mental health system. We have to get the basics right.

“We need to grow the mental health workforce and match mental health funding to the level of community need, or the system will keep collapsing under pressure.

“Australians with mental health conditions, and the entire sector, are desperately hoping the next Federal Government finally listens.”

The RANZCP will undertake a detailed analysis of the budget paper over the week.

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Mental health abandoned

 Australian Association of Psychologists

Australian Association of Psychologists Executive Director Tegan Carrison said she was devastated by the Federal Budget.

“My heart is breaking for all the families in crisis who had hoped that the Government would hear their pleas for support and appropriate funding to get their mental health back on track.

“It seems the Federal Government has forgotten we are in the midst of an ongoing mental health crisis.

“The Government’s claims that this is the largest investment in Medicare since its creation 41 years ago and continues to ignore one of the key aspects of health – mental health!  Since when is mental health not considered part of Medicare?

“Mark Butler said he was delivering ‘a healthcare system that means all you need to receive quality health care is your Medicare card, not your credit card’. Quality, universal health care must include mental health. Out-of-pocket costs are the highest ever for mental health due to systemic underfunding, and cost remains the major barrier to accessing appropriate care.

“I would like the Federal Government to explain to the 4.2 million people in this country who have experienced a mental health disorder in the past 12 months why they have been abandoned.

“Mental ill health is costing this country $220 billion each year and excluding and deprioritising mental health care is not only short-sighted, it’s destroying families and communities. We know that with prevention, early intervention and treatment, people can thrive and contribute to their families, workplaces, communities and the country.

“We can only hope that in the Government’s haste in preparing this Budget, someone forgot to include ANY initiatives to address our crippling mental health crisis.

“Coming into government, the Prime Minister promised to ‘strengthen universal healthcare through Medicare’ – but again, what about mental health? Do people with mental health care needs not count?

“We hear every day from psychologists about people needing to choose between putting food on the table and lifesaving mental healthcare. This is a huge missed opportunity to address what really matters.”

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More reforms needed

Australian Medical Association

Tonight’s Federal budget has locked in welcome investments in Medicare, but significant reforms are needed to ensure Australia’s health system doesn’t fall further into crisis.

Australian Medical Association President, Dr Danielle McMullen, said it was reassuring to see the additional $8.5 billion for Medicare that was promised by both parties confirmed in the budget, together with funding to address GP workforce issues and medical workforce shortages.

“This investment followed years of campaigning through our Modernise Medicare campaign which highlighted the long-term neglect of Medicare and consequences of that neglect on our health system.

“But while this investment will help address affordability issues for many who don’t currently qualify for bulk billing incentives, structural reform of Medicare rebates is needed to ensure today’s patients get the care they need.

“We are calling for a new seven-tier general practice consultation item structure that is designed to meet the challenges of the growing burden of complex and chronic disease — one that supports patients to spend more time with their GP as part of a comprehensive approach to care.”

Dr McMullen also welcomed funding to grow Australia’s specialist GP training places, with the AMA’s 2025-26 budget submission highlighting the growing  shortfalls in GP numbers, unless action was taken.

“The Government has also responded to our calls for funding for additional training rotations in general practice for early career doctors and funding to improve and equalise employment conditions for GP doctors-in-training,” Dr McMullen said.

However, Dr McMullen said the government had missed an opportunity to support thorough and evidenced-based workforce planning by not establishing an independent health workforce agency.

“Since the abolition of Health Workforce Australia, we haven’t had an independent body dedicated to ensuring Australia’s medical workforce is distributed where it’s needed, improving access to healthcare for all.

“We again acknowledge announcements earlier this year that followed significant advocacy by the AMA in relation to women’s health. This includes a commitment to lift Medicare rebates for long-acting reversible contraceptives, the inclusion of two new oral contraceptives on the PBS and extra clinics to support patients with endometriosis, pelvic pain, perimenopause and menopause.”

The AMA will also be pushing the next government to address the growing crisis in the private health sector, including hospital closures, contract disputes between insurers and hospitals and growing evidence that more and more policy holders are downgrading their cover as premiums become less affordable.

“We are concerned these issues will only get worse and are calling for an independent private health authority to oversee urgent reforms and ensure the sector is meeting the expectations of the community,” Dr McMullen said.

Dr McMullen said the additional funding the Government had locked in for Australia’s public hospitals would go some way to helping our increasingly logjammed public hospitals improve their performance, but the party that wins the election would need to expedite finalising the National Health Reform Agreement.

“While the recent investment from the federal government and action to address issues in some states and territories is welcome, the delay to a new National Health Reform Agreement was disappointing. The Federal Government’s promised investment, originally estimated at $13 billion, into our public hospitals is little more than a nice idea if states and territories fail to reach an agreement with the Federal Government.

“The need for a new fit-for-purpose agreement has never been greater — for both doctors and their patients.”

Dr McMullen said hospitals were being increasingly impacted by rising rates of chronic disease and the Government had also missed the opportunity to tackle obesity and chronic disease through a tax on sugary drinks, which would also boost the budget bottom line.

“Our proposal for a tax on sugary drinks would drive down annual sugar consumption by 2kg per person, while raising $3.6 billion in government revenue over the forward estimates — funds that could be invested in crucial preventive health measures.

“We have been pushing for a tax on sugary drinks for many years, but governments keep kicking the can down the road, all while Australia’s issues with obesity and chronic disease become worse and worse.”

Dr McMullen said the AMA was looking forward to hearing from both parties during the election on their plans to address critical issues in the system, including through reform.

“We know this is expected to a health election, and we are hoping to see some much-needed reforms announced, that combined with tonight’s investment in Medicare, will ensure Australia’s health system continues to be one of the best in the world.”

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Welcome investment in medical research and clinical trials

Australia New Zealand Gynaecological Oncology Group (ANZGOG)

The Australia New Zealand Gynaecological Oncology Group (ANZGOG) welcomes key initiatives in the Federal Budget that will support Australians living with gynaecological cancer. This includes investment in medical research, clinical trials, Pharmaceutical Benefits Scheme (PBS), Medicare and support for our healthcare workers.

ANZGOG acknowledges the Federal Government’s commitment of $158.6 million over five years to support medical research and the translation of research into clinical practice, alongside the $150.3 million investment in expanding precision oncology programs, including the Australian Rare Cancers Portal. These investments represent a positive step in strengthening Australia’s healthcare system and advancing cancer care.

However, with 19 women diagnosed with a gynaecological cancer every day, and more than half facing a rare or less common cancer with limited treatment options and poor survival rates, ANZGOG recognises the critical need for increased investment and collaboration in this area to change treatment, catalyse research and save women’s lives.

ANZGOG Chair, Professor Clare Scott AM, said the organisation is committed to working with government and the broader health sector to ensure women with gynaecological cancers receive the same level of research investment and treatment innovation as those diagnosed with other cancers.

“With the number of Australian women impacted by gynaecological cancer rising, it is essential that we continue to strengthen research and clinical trial investment to drive better outcomes. ANZGOG stands ready to collaborate with government, the health sector, and research partners to support, connect and implement these important initiatives.”

ANZGOG looks forward to working with the Federal Government to build on these Budget measures, as well as partnering with the Medical Research Future Fund, the Australian Cancer Plan, and the National Framework for Genomics in Cancer Control.

Through targeted investment and transformative research, we can improve the diagnosis, treatment, and care of gynaecological cancers—delivering better outcomes for all those affected.

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See Croakey’s articles on the 2025-2026 Federal Budget