Treasurer Jim Chalmers’ 2025–26 Australian Federal Budget has been welcomed by some organisations in the health sector, while drawing guarded praise from others – including the Australasian Institute of Digital Health (AIDH).
AIDH said the Budget commitment of $46 million over four years to continue digital mental health services and $228.7 million to modernise My Health Record were positive steps, while funding to improve household internet was also welcomed as an opportunity to improve access to telehealth and other essential services.
However, it said there were “critical digital health initiatives that the Government hasn’t properly addressed,” including digital health literacy programs and workforce training and development for effective utilisation of digital health tools.
AIDH CEO Anja Nikolic said the Institute welcomed the Budget’s commitment to digital mental health services and the modernisation of My Health Record but said it was “important to recognise that significant gaps remain.”
“Key areas such as digital health literacy and workforce training have not been adequately addressed. Robust and targeted action in these areas is essential for minimising inefficiencies that augment the effects of the health workforce shortage,” Ms Nikolic said.
MISSED OPPORTUNITY
Elsewhere, the Health Services Union (HSU) endorsed the Budget’s investment into Medicare, while noting a “missed opportunity” to provide cost-of-living relief for disability support workers.
The HSU said the budget locked in a 12 per cent increase in public hospital funding, what it said was a record increase of $33.9 billion in public hospitals – and $644 million for 50 more urgent care clinics to relieve pressure on our acute care system.
It said the $8.5 billion boost for Medicare would make nine in every 10 GP visits bulk billed, and make reproductive health cheaper for 300,000 women.
HSU National Secretary Lloyd Williams said there was “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.”
BUDGET TOO “CITY-BASED”
Meanwhile, the National Rural Health Alliance said the Budget was a “mixed bag” for healthcare in rural, regional and remote Australia.
NRHA Chief Executive Susi Tegen was encouraged to see “some of the Federal Government’s pre-election healthcare promises reflected in the 2025-26 Budget.”
“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 needs.”
Ms Tegen also welcomed 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.
NURSES AND MIDWIVES REACT
The Australian Nursing and Midwifery Federation (ANMF) welcomed prioritised funding in the Budget for health and aged care, including Medicare funding as well as $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 $573 million women’s health package.
ANMF federal secretary Annie Butler, said the Budget was “full of good news for our members working on the frontline of health and aged care.”
“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.
“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.”
OLDER PERSONS CONCERNED
The Older Persons Advocacy Network (OPAN) said it was concerned that the Budget lacked adequate funding for the aged care sector.
OPAN CEO Craig Gear acknowledged the Budget’s $291 million for addressing the recommendations of the Royal Commission into Aged Care Quality and Safety, but also raised concern about aged care workforce funding and wait times for Home Care Packages.
“Our aged care sector is facing many challenges right now, including significant workforce shortages and a growing number of older people waiting for support,” Mr Gear said.
“OPAN would have liked to see increased access to hardship provisions for older people who have limited financial means, to make sure they don’t slip below the poverty line.
“Further, we continue to see an increase in people waiting for Home Care Packages, and that hasn’t been addressed in this Budget. We are increasingly concerned that this figure will continue to grow.”
Mr Gear was pleased to see $47 million over four years for First Nations organisations to deliver culturally appropriate care.
“We know that First Nations communities are particularly vulnerable, so we are glad to see tailored support for their aged care assessments – but this could have been taken further,” Mr Gear said.
“We are also glad to see the new Aged Care Act is still scheduled to commence on 1 July 2025. We strongly encourage the Government to stick to this timeline.”
