Record Hospital Investment – National Health Agreement 2020–21 to 2024–25

Page last updated: 08 May 2018

Record Hospital Investment – National Health Agreement 2020–21 to 2024–25 (PDF 168 KB)

The Government will invest $130.2 billion in public hospitals, an increase of $30.2 billion, with record funding each year, for each state and territory. Australian Government funding for public hospital activity will increase from $100.0 billion between 2015–16 and 2019–20 to $130.2 billion between 2020–21 and 2024–25. The funding will support record numbers of surgeries and services, and the greatest number of doctors and nurses in Australia’s public hospitals.

Why is this important?

At the February 2018 Council of Australian Governments’ meeting, the Prime Minister offered states and territories a five year Heads of Agreement for hospital funding and health reform, to start on 1 July 2020. The arrangements maintain a commitment to activity based funding, and extend reforms under the Addendum to the National Health Reform Agreement to focus on improved safety and quality and coordinated care and health innovation.

Under the National Health Agreement, funding to Australia’s public hospitals is on track to more than double from $13.3 billion in 2012–13 to $28.7 billion in 2024–25. Ongoing funding arrangements are important to ensure patients receive care when they need it, delivered effectively, safely and efficiently, now and into the future.

The Heads of Agreement will drive innovation in providing hospital services. The Commonwealth, states and territories have also agreed to explore options to drive down avoidable hospital admissions, including through better coordinated primary care. Western Australia, New South Wales, Australian Capital Territory, Tasmania, South Australia and the Northern Territory have all signed the agreement.

Who will benefit?

Public hospital funding will support significant increases in hospitals, surgeries, more doctors, more nurses, and public hospital patients will receive care when they need it, delivered efficiently, safely and cost-effectively, now and into the future.

States and territories will share in a new $100 million health innovation fund when they all have signed the Heads of Agreement. All Australians will benefit from improved health outcomes, through greater sustainability of the health system.

How much will this cost?

This will cost $130.2 billion for public hospital services over the life of the Agreement, from 2020–21 to 2024–25, and an additional $100 million for reform.

Five Year Comparison of Current National Health Reform Agreement to the Next National Health Agreement – 2018–19 Budget

Continuation of the Parameters in the Addendum to the National Health Reform Agreement – 45% Efficient Growth
$ millions
$ millions
$ millions
$ millions
2012–13
2013–14
2014–15
2015–16
2016–17
2017–18
2018–19
2019–20
5 year total
2015–16 to 2019–20
2020–21
2021–22
2022–23
2023–24
2024–25
5 year total
2020–21 to 2024–25
5 yearly increase
National
13,305.4
13,841.2
15,466.0
17,185.4
18,638.1
20,690.0
21,189.2
22,301.4
100,004.1
23,468.0
24,691.8
25,975.3
27,321.5
28,733.5
130,190.1
30,186.0
30.2%
New South Wales
4,308.1
4,352.5
4,877.6
5,509.4
5,730.3
6,068.3
6,446.4
6,780.5
30,535.0
7,129.9
7,495.3
7,877.4
8,276.9
8,694.6
39,474.1
8,939.1
29.3%
Victoria
3,263.0
3,462.5
3,851.0
4,180.3
4,723.9
5,040.6
5,325.5
5,583.1
24,853.4
5,852.2
6,133.6
6,427.6
6,734.7
7,055.7
32,203.9
7,350.5
29.6%
Queensland
2,665.9
2,799.8
3,061.1
3,530.7
3,851.3
4,854.7
4,733.3
4,996.9
21,967.0
5,274.5
5,566.8
5,874.5
6,198.5
6,539.5
29,453.9
7,486.8
34.1%
Western Australia
1,407.9
1,514.6
1,755.3
1,842.6
2,088.6
2,262.5
2,251.8
2,387.2
10,832.6
2,530.4
2,681.8
2,841.9
3,011.2
3,190.1
14,255.3
3,422.7
31.6%
South Australia
1,011.2
1,006.2
1,124.7
1,224.0
1,265.8
1,352.2
1,345.5
1,400.6
6,588.1
1,457.6
1,516.6
1,577.6
1,640.6
1,705.8
7,898.2
1,310.1
19.9%
Tasmania
294.1
299.0
333.7
375.0
387.6
418.6
419.2
433.9
2,034.3
449.1
464.8
481.0
497.8
515.2
2,407.9
373.6
18.4%
Australian Capital Territory
203.1
271.7
304.6
324.7
344.6
403.0
385.7
411.4
1,869.4
438.8
468.0
499.1
532.3
567.6
2,505.8
636.5
34.0%
Northern Territory
152.1
135.0
158.0
198.8
245.9
290.0
281.8
307.8
1,324.2
335.5
364.9
396.2
429.5
464.9
1,991.0
666.8
50.4%

Note: Figures from 2017–18 are estimates and subject to change.

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