Better health outcomes and experiences for all Australians and better value for patients

Objective 1 of the National Health Reform Agreement (NHRA) focuses on finding better ways to deliver health care, improving the health of Aboriginal and Torres Strait Islander peoples and making sure money is spent wisely.

In the 2026–2031 NHRA Addendum, all governments agreed that the health system needs improvements made so people can get the right care, in the right place, at the right time, from the right kind of health worker. To make this happen, they have planned some important changes.

New funding to try better ways of delivering health care

The newly established Service Model Reform Fund (SMRF) will provide up to $1.8 billion from the Australian Government and the states and territories. This money will be used to test new and better ways of delivering health services to take pressure off public hospitals and provide more effective care to patients.

A new plan to improve health for Aboriginal and Torres Strait Islander peoples

There is a new section in the new addendum created together with the Aboriginal and Torres Strait Islander health sector.

Its aim is to improve health outcomes for First Nations Australians.

It will have up to $450 million to support changes designed with the First Nations sector and a further $50 million to support national priorities.

This will help all governments work towards important goals in the:

New ways of funding health care that focus on value

Governments also want to test different ways of paying for health services in this new addendum that are better value for patients and the health system.

This includes:

  • considering incentives for delivering best-practice care
  • pricing care more fairly, by considering value to patients.

These ideas are meant to encourage smarter, more effective health care that helps patients and uses the health system’s money wisely.

Date last updated:

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