A simpler, more equitable public hospital and health services funding model

Objective 3 of the National Health Reform Agreement (NHRA) focuses on simpler and fairer ways to share health funding, improving health outcomes for First Nations Australians, and reviewing funding for small states and rural and remote communities.

The 2026–2031 NHRA Addendum introduces a new way of funding health care to make sure people in all Australian communities can access the services they need. This will be achieved by:

A simpler and fairer way to share health funding

Governments will use a new funding model that is easier to understand and helps improve how care is delivered.

  • States and territories will receive up to $219.6 billion over the next five years for Public Hospital and Health services and increase of up to $24.4 billion in extra base funding.
  • The Australian Government will also provide over $600 million more for public hospitals and health services.
  • This new model will make funding clearer and will guarantee each state and territory a minimum amount of funding.

Improving health outcomes for First Nations Australians

The new funding approach will focus on improving the health of Aboriginal and Torres Strait Islander peoples.

This supports the goals of the Closing the Gap agreement and gives governments a chance to continue improving access to health services.

Reviewing funding for small states and rural and remote communities

Small states and territories and rural and remote communities often find it difficult to access health care services and face other additional challenges.

The funding model will be reviewed to make Australians in smaller states and territories, and rural and remote regions receive the support they need.

Date last updated:

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