Federal Budget health and aged care initiatives announced

Darrell Price
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The health and aged care industry faces continued uncertainty, but following the Federal Budget announcements on 14 May, improvements are expected.

Aged Care

While there was no specific funding attributed to the recommendations by the Aged Care Taskforce (ACTF), including co-contributions by consumers, there is a sizeable allocation of unspecified funding for the sector. 

This is welcomed news as the funding will enable the sector to continue to negotiate on legislative reform funding and other initiatives ahead of the release of the new Aged Care Bill. 

It provides an opportunity for industry stakeholders, including Aged & Community Care Providers Association (ACCPA) to advocate for better outcomes within the announced policy framework of the Governments.

You can read our insights into the ACTF report here as well as perspectives on the aged care sector following our recent roundtable series with the Commonwealth Bank of Australia and CEOs nationwide here.

Specific Aged Care sector initiatives 

Additional funding in the Aged Care sector includes:
  • $531.4m to provide an extra 24,100 Home Care Packages
  • $111m to enhance the capability of the Aged Care Quality and Safety Commission
  • $1.4b to upgrade technology systems and digital infrastructure
  • $882.2m to ensure older Australians receive the medical support they need
  • $318m over five years to strengthen pharmacy and keep the cost of medicine down
  • $101.4m investment in services and support for people living with complex care needs, including better dementia care


Our hospital systems are stretched under the strain of increased demand for services. There have been efforts to streamline hospital systems and other healthcare services. However, these improvements are inconsistent and not yet part of a regular, system-wide process. The Budget provided some additional funding to improve systems reform, but more would be welcomed.

Health and hospital sector initiatives 

Additional funding in the health and hospital sector, made up of Medicare and mental health services, includes:
  • $227m to grow the number of Medicare Urgent Care Clinics to 87
  • $882.2m to take pressure off hospitals
  • $361m over four years to expand the range of free mental health services
  • $69.8m to increase the number of Medicare eligible MRI machines
  • $266.9m so Medicare rebates rise each year for nuclear medicine imaging and many common medical tests
  • $91.1m to boost the supply of healthcare in areas of shortage
  • $469.1m to reduce patient costs and improve access to medicines
  • $3.4b to list new medicines on the Pharmaceutical Benefits Scheme

Increasing medical research

  • $1.4b over 13 years in ground-breaking new health and medical research


While the investment in improving access to workforce is welcome, it does not seem enough to address the supply of nursing staff and medical practitioners – particularly in rural and remote Australia. 

With funds available, it is incumbent on the Government – in conjunction with providers – to develop clear and achievable strategies to deliver more medical resources for all parts of the health system. 

We’re here to help

As a national team, we can mobilise easily to assist both local and national clients on various fronts. Leveraging the collective expertise of our colleagues in strategy, financial modelling, technology, workforce optimisation, insolvency, organisational culture, and beyond, we stand ready to support your ambitions and challenges in the Health and Aged Care industry.  

Learn more about how our Health & Aged Care services can help you
Learn more about how our Health & Aged Care services can help you
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