For Australians relying on the public health system, long wait times in emergency rooms and ambulance ramping have become all too familiar. Now, the Albanese Labor Government is stepping in with a $1.7 billion funding boost for public hospitals in 2024-25—one of the biggest injections into the system in years.
For Prime Minister Anthony Albanese, the funding boost is a chance to reinforce Labor’s legacy in universal healthcare.
“Labor created Medicare, and we will protect it. Our public health system is too precious to entrust to Peter Dutton and the Liberals, who ripped $50 billion out of public hospital funding when he was Health Minister,” the Prime Minister said.
This move brings the Commonwealth’s total contribution to state-run hospitals to a record $33.91 billion in 2025-26, marking a 12 per cent increase. The funding is aimed at tackling overcrowded emergency departments, slashing wait lists, and easing pressure on frontline healthcare workers.
Every state and territory is set to benefit from the one-off funding boost, with NSW, Victoria, and Queensland receiving the lion’s share.
| State/Territory | 2024-25 Funding | Extra Boost | 2025-26 Funding | Growth (%) |
|---|---|---|---|---|
| NSW | $8.89B | $407M | $9.88B | 11% |
| Victoria | $7.30B | $402M | $8.18B | 12% |
| Queensland | $7.07B | $414M | $7.94B | 12% |
| Western Australia | $3.25B | $158M | $3.62B | 11% |
| South Australia | $2.05B | $169M | $2.35B | 15% |
| Tasmania | $0.66B | $50M | $0.75B | 14% |
| ACT | $0.54B | $50M | $0.63B | 16% |
| Northern Territory | $0.43B | $51M | $0.56B | 30% |
| National Total | $30.19B | $1.70B | $33.91B | 12% |
At a National Cabinet meeting in December 2023, all state and territory leaders agreed to work with the Commonwealth on structural health reform. The funding agreement also commits all jurisdictions to collaborating on changes to the NDIS, ensuring vulnerable Australians continue to receive critical support.
Meanwhile, Health Minister Mark Butler took aim at past governments that played “the blame game” instead of fixing the system.
“Australians don’t want political trench warfare on hospital funding—they just want to know they won’t be stuck waiting hours in an overcrowded emergency department.”
But the Opposition is unlikely to let this narrative go unchallenged. With an election looming, healthcare is shaping up to be a key battleground—one that will test voters’ trust in both parties when it comes to the future of Medicare and public hospitals.
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