Albanese pushes states to approve a $20 billion health funding package, warning that the federal government will explore alternative routes if consensus isn’t reached to end the standoff over public hospital funding. A Friday meeting between state health ministers and federal Health Minister Mark Butler will address the impasse, as advocates warn that shortages in aged care are worsening pressure on overcrowded hospitals.
Craig Gear, CEO of the Older Persons Advocacy Network, described a lengthy 53-day wait for aged care assessments, which some doctors are using to justify hospital admissions to speed up referrals to residential or in-home care. He noted that hospital stays are typically faster, and urged that community assessment wait times be shortened to three to four weeks so people don’t need hospital care.
The group is also concerned about delays in discharging patients from hospital, linking this to a shortage of residential care or in-home support options.
Prime Minister Anthony Albanese and Health Minister Butler are aiming to seal a deal before year’s end, ending a dispute that began in December 2023 when states agreed to address National Disability Insurance Scheme cost overruns in exchange for more hospital funding. The agreement would have increased the federal share of hospital funding to 42.5% by 2030 and 45% by 2035, contingent on state commitments to fund new programs for children with mild developmental disorders by 2025.
That July deadline was not met, and the government announced a national program for children with autism and disabilities named Thriving Kids, launching nationally from July 2026. To honor the 42.5% target, the original $13 billion package was raised to $17 billion, prompting Albanese to propose additional funding that would push the total above $20 billion and address aged-care bottlenecks in hospitals.
Greens spokesperson Penny Allman-Payne highlighted urgent concerns, citing October data showing 266,352 people on aged-care waitlists, with around 2,500 currently in public hospitals awaiting access. She criticized the aged care reforms as flawed and noted evidence that doctors are directing patients to hospitals due to lengthy assessments. She argued that Australia’s older citizens deserve better care.
Queensland Health Minister Tim Nicholls dismissed the revised offer as insufficient, joking that Queenslanders expected a Christmas gift but received a “Grinch” instead. Albanese rejected the criticism, urging serious good-faith negotiation and warning that the federal government does have other options if states stall.
Butler indicated a deal before Christmas remains possible, including the possibility of a national cabinet meeting next week to secure final sign-off from Albanese and state leaders.
