This aims to help state and territory governments cut surgical waiting lists, reduce emergency department wait times, and address ambulance ramping issues across the country. The funding will be distributed proportionally to all states and territories, with growth ranging from 11% to 30%.

This immediate funding injection represents a step toward the government's longer-term commitment to increase the federal share of public hospital funding to 45% by 2035, which will deliver an additional $13.2 billion over the five years to 2030. The Australasian College for Emergency Medicine has welcomed the funding as a measure to address access block, which occurs when patients needing hospital admission wait more than eight hours in emergency departments due to lack of ward beds.

While this represents a one-year agreement, the government has indicated its intention to work toward a new five-year National Health Reform Agreement, with longer-term funding arrangements remaining contingent on states and territories progressing reforms to the NDIS and foundational supports system.

• 12% increase in Commonwealth hospital funding to $33.91 billion in 2025-26

• Substantial boosts for all jurisdictions: NSW ($407m), Victoria ($402m), Queensland ($414m), WA ($158m), SA ($169m), Tasmania ($50m), ACT ($50m), and NT ($51m)

• Targeting reduced waiting times, improved emergency care, and addressing ambulance ramping

• Part of a pathway toward Commonwealth funding reaching 45% of hospital costs by 2035

[1] https://www.abc.net.au/news/2025-02-05/labor-to-fully-fund-hospitals-and-cut-wait-times/104899546

[2] https://www.health.gov.au/sites/default/files/2023-05/stakeholder-pack-budget-2023-24.pdf

[3] https://www.pm.gov.au/media/albanese-labor-government-building-australias-future-more-money-public-hospital-reform