Key takeaways

Aboriginal and Torres Strait Islander people

AUD 32.3 million over two years to support and promote vaccinations in First Nations communities.

AUD 31.4 million over four years to continue programs to prevent, control and protect communicable diseases in the Torres Strait Islands and Far North Queensland.

AUD 12.5 million over four years for free menstrual products for girls and women in First Nations communities.

AUD 11.1 million to expand access to the Closing the Gap Pharmaceutical Benefits Scheme (PBS) co-payment program for Aboriginal and Torres Strait Islander people as part of funding for the PBS.

Aged care

AUD 2.2 billion over five years for aged care reforms and to continue to implement recommendations from the Royal Commission into Aged Care Quality and Safety. This funding includes:

• AUD 1.2 billion over five years for critical aged care digital systems to ensure legislative compliance and support the introduction of the new Aged Care Act from 1 July 2025.
• AUD 531.4 million to release an additional 24,100 home care packages in 2024-25, reflecting the increasing preference for Australians to age in their homes.
• AUD 174.5 million over two years to fund ICT infrastructure for the new Support at Home Program and Single Assessment System from 1 July 2025.
• AUD 110.9 million over four years to increase the regulatory capabilities of the Aged Care Quality and Safety Commission.
• AUD 87.2 million for workforce initiatives to attract nurses and other workers into aged care.
• AUD 37 million over two years for the My Aged Care Contact Centre to reduce wait times and improve access.
• AUD 30.4 million over three years to continue to deliver the Specialist Dementia Care Program.

The Government has also committed to fund the Fair Work Commission's approval of increased modern award wages for aged care workers under the Aged Care Work Value Case (pending final determination).

This measure builds on the AUD 11.3 billion the Government has already allocated to support an interim 15% wage increase from 30 June 2023. The cost is expected to run in the billions of dollars and account for a significant portion of the Federal Budget's increased contingency fund.

COVID-19

AUD 1.3 billion to improve access to COVID-19 oral treatments as part of funding for the PBS.

AUD 490 million over four years to continue the National COVID-19 Vaccine Program as part of funding for vaccine access.

AUD 335.7 million over four years to add COVID-19 pathology testing to the Medicare Benefits Schedule (MBS) as part of the Government's AUD 2.8 billion Medicare package.

COVID-19 federal epidemic assessment reporting is to cease, saving an estimated AUD 800,000 from the Federal Budget. COVID-19 was declared by the Government as no longer being a communicable disease of national significance in October 2023, reflecting changing approaches to managing the virus in Australia.

Drugs and alcohol

AUD 41.6 million over two years to continue funding for drug and alcohol support services and treatment. This will include funding for the Good Sports alcohol management program for community sporting clubs as well as other drug and alcohol treatment services in areas of identified need, including remote and rural regions.

Education

AUD 24.6 million for a new medical school at Charles Darwin University.

Infants

AUD 25 million over four years for newborn bloodspot screening programs.  

AUD 5.8 million to prevent premature birth in participating maternity services and First Nations communities.

AUD 2 million to the Mater Foundation to support premature babies through research, specialist care and equipment via Nine Telethon.

Medical research

Additional funding of AUD 1.4 billion over 13 years through the Medical Research Future Fund (MRFF), bringing the Government's total commitment through the MRFF to AUD 6.4 billion over 13 years. Funding includes:

• AUD 411.6 million for new research missions for low-survival cancers and reducing health inequities.
• AUD 377.5 million to translate research outcomes into medical practice.
• AUD 141.1 million for medical research and services for people with chronic conditions such as bowel and skin cancer, diabetes and dementia.

Medicare

AUD 2.8 billion to strengthen Medicare, building on the AUD 6.1 billion Medicare investment in the 2023-24 Federal Budget. Funding includes:

• AUD 895.6 million over four years to improve the MBS by ensuring it reflects modern medical practices.
• AUD 882.2 million to take pressure off hospitals by supporting earlier hospital discharge and transition to other care for older Australians.
• AUD 227 million over three years to deliver nine additional Medicare urgent care clinics (bringing the total to 87 across Australia) and boost support for regional and remote clinics.
• AUD 116.2 million over five years to strengthen the health workforce, including AUD 90 million to simplify regulatory systems to facilitate international health practitioners working in Australia.

Mental health

AUD 888.1 million over eight years for a mental health package to strengthen mental health and suicide prevention systems, including AUD 588.5 million for a national low‑intensity digital mental health service that is free and does not require referral.

National Disability Insurance Scheme (NDIS)

AUD 468.7 million over 5 years for measures to support the NDIS, including additional funding for fraud prevention. On the back of NDIS spending unexpectedly increasing by 21 per cent to AUD 44.3 billion in 2023, the Government is seeking to lower the growth of annual NDIS costs to 8 per cent by 2026. This requires the passage of new legislation.

AUD 227.6 million over five years for a new specialised disability employment program to support more people with disability to achieve sustainable work. This will replace the existing Disability Employment Services program by 1 July 2025.

AUD 45.5 million over four years to establish a NDIS Implementation Advisory Committee to oversee implementation of reforms recommended by the independent NDIS Review.

AUD 23.3 million over four years to establish a Disability Employment Centre of Excellence.

Pharmaceutical Benefits Scheme (PBS)

AUD 3.4 billion over five years for new and amended listings on the PBS.

AUD 318 million over five years to freeze the maximum cost of PBS subscriptions for one year for Medicare card holders and five years for pensioners and concession card holders, which will lower the cost of prescription medicines despite inflation. 

AUD 151.1 million over five years for Dose Administration Aids, enabling pharmacies to provide 90 subsidised services each week instead of 60.

Preventative health

AUD 303.9 million over two years to support the National Medical Stockpile to improve preparedness for health emergencies and pandemics.

AUD 55.3 million over three years to maintain the National Critical Care and Trauma Response Centre.

AUD 43.9 million over three years to implement recommendations of the federal HIV Taskforce. The Government's goal is to eliminate HIV transmission by 2030.

AUD 20 million to deliver an advanced molecular imaging scanner and double capacity as part of a joint funding package with the Victorian Government for the new Paula Fox Melanoma and Cancer Centre in Melbourne.

AUD 15 million over two years for a national skin cancer prevention campaign.

AUD 10.3 million over four years for a national skin cancer screening roadmap to improve the collection of skin cancer data.

Research and Development (R&D) Tax Incentive

Rebates under the R&D Tax Incentive, which entitles businesses undertaking eligible research and development activities to tax offsets, have exceeded Government expectations and added significant spending to the Federal Budget. Rebates under the R&D Tax Incentive are expected to increase by AUD 2.6 billion over five years, reflecting increased R&D expenditure in scientific and healthcare industries.

Services

AUD 580.3 million over four years to sustain the myGov platform and identify potential enhancements, including an additional AUD 50 million to support protection of individuals' information and privacy.

Sports participation

AUD 249.7 million over three years to revitalise the Australian Institute of Sport.

AUD 132.7 million over three years for sport participation and performance programs.

Vaccines

AUD 631.1 million over four years to support ongoing access to life-saving vaccines, including:

• AUD 490 million over four years to continue the National COVID-19 Vaccine Program.
• AUD 82.5 million over three years to ensure ongoing joint responsibility with states and territories for vaccination programs.
• AUD 57.7 million over four years to expand the eligibility of Shingrix for prevention of shingles and associated complications.

Women's health

AUD 56.5 million over four years for midwives to provide longer consultations before and after childbirth as part of the Government's Medicare package.

AUD 53.6 million for research priorities to improve women's heath outcomes as part of research funding through the MRFF.

AUD 49.1 million over four years for higher rebates for gynecologist visits as part of the Government's Medicare package.

AUD 7 million over three years on support services for women and families experiencing miscarriage.

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Sources: Commonwealth of Australia; LexisNexis Capital Monitor; Australian Financial Review.