Thursday, 27 November 2025

State Premiers' 'unprecedented' act to PM over hospital funding

The Premiers are urging the PM to commit to Federal Government hospital funding of 42.5% by 2030 and 45% by 2035, fulfilling a 2023 promise.

Caroline Egan profile image
by Caroline Egan
State Premiers' 'unprecedented' act to PM over hospital funding
Queensland Premier David Crisafulli is interviewed about older people "stranded" in hospital waiting for residential aged care.

State and Territory Premiers united this week to issue a joint letter to Prime Minister Anthony Albanese.

They are urging the Commonwealth to honour its promise to increase hospital funding and bolster support for aged care and disability.

The Premiers urged the PM to fulfil the Government's promise of delivering 42.5% of hospital funding by 2030 and 45% by 2035. A proposed funding cap of 8% on Commonwealth hospital investment has led to disagreements in negotiations between State and Federal leaders.

With nearly 2,800 people in hospital waiting for aged care last month stranded in hospital, the Premiers have also demanded the Federal Government “design and properly fund” NDIS reforms and increase funding for aged care and NDIS services.

“Thousands of stranded Australians remain in hospitals waiting for an aged care bed or NDIS placement – both of which are the sole obligations of the Commonwealth.
“These Australians are medically ready for discharge, but the Commonwealth has nowhere for them to go – forcing those vulnerable people to stay in hospital and denying others a hospital bed they desperately need.”

In September, the Prime Minister wrote to the states and territories saying they must constrain public hospital spending if they wish the hospital funding deal to be honoured.

In 2023, the Commonwealth committed to lifting its share of State hospital funding to 42.5% per cent by 2030 and to 45% by 2035. The Federal Government has increased its offer from $13 billion in 2023 to $20bn today. While the dispute continues, States are relying on an interim one-year funding arrangement as they negotiate a new five-year deal. States say an extra $8 billion-$10 billion is needed.

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