Federal Government Unveils $1.7B Plan for Medicare & Hospitals

The federal government is injecting $1.7 billion into Medicare to help ease the strain on Australia’s public hospitals.

Prime Minister Anthony Albanese announced the funding today, saying it’s all about cutting wait times, reducing hospital backlogs, and improving healthcare across the board.

"Labor created Medicare, and we will protect it and strengthen it," Albanese said. "Healthcare is the first issue I engaged with as a very young man—nothing is more important."

The one-off funding boost will be shared across all states and territories, bringing total Commonwealth hospital funding to $33.91 billion in 2025-26. The Northern Territory, which is facing serious healthcare challenges, will receive a $51 million boost, while the other states get their share:

• NSW: $407 million

• Victoria: $402 million

• Queensland: $414 million

• Western Australia: $158 million

• South Australia: $169 million

• Tasmania & ACT: $50 million each

Health Minister Mark Butler backed the announcement, saying Australia’s healthcare system is under "serious pressure."

"We have an aging population, people are getting sicker, and we’re still dealing with the long tail of COVID," Butler explained.

The announcement comes right after the Australian Medical Association (AMA) called for a major Medicare overhaul to fix long-standing issues in hospitals and general practice.

With the 2025 federal election approaching, this funding commitment is a clear signal that healthcare will be a major campaign focus.