The Victorian Healthcare Association (VHA) has welcomed targeted funding in this year’s Federal Budget to address the long-term challenges facing the Australian healthcare system, including cost-of-living pressures and the pressing need to improve health equity.
This year’s Federal Budget 2025-26 has a strong focus on primary care; improving aged care delivery and expanding the provision of culturally safe care, but there is a missed opportunity to invest in the mental health workforce. A major focus is $7.9 billion in funding to strengthen Medicare, which was announced prior to the Budget. The Federal Budget contains more than $230 million to support continued implementation of the Aged Care Act, which will come into effect 1 July 2025. It is pleasing to see an investment of more than $70 million over four years to improve access to culturally safe care in mental health and aged care settings, consistent with the VHA’s submission to fund the provision of culturally safe care.
VHA CEO Leigh Clarke welcomed the strong focus on implementing the work of the Federal Government’s Strengthening Medicare Taskforce – which demonstrates serious efforts to improve health equity for all Australians.
‘The announcement of $7.9 billion to expand bulk billing arrangements will go some way to supporting Victoria’s Community Health Services to bridge the gap between the funding received and the true cost of delivering care. This will support the delivery of affordable care to local communities, support the sustainability of vital services and address workforce supply.’
‘$657.9 million has been announced to deliver additional Medicare Urgent Care Clinics which continue to see increased demand and are well run by hospitals and health services across the state.’
The Federal Government has committed to $291.6 million over five years (from 2024–25) to support implementation of the new Aged Care Act on 1 July. This includes $116 million to strengthen the Aged Care Quality and Safety Commission; $53.2 million to fully implement the Single Assessment System and $24.4 million for additional Commonwealth Home Support Program assessments.
‘We are pleased to see funding to support implementation of the new Aged Care Act, yet this will not support individual providers in implementing changes to their services, including the transition to delivery of the Support at Home program. The sector is concerned that the 1 July implementation is fast approaching and there is still no clarity on the Aged Care Rules that will sit under the new Act, nor clarity on the impact for services.’
Ms Clarke said funding to support culturally safe care across aged care ($47.6 million) and mental health ($24.7 million) will build the capacity of health services to provide safer care for Aboriginal and Torres Strait Islander people and reduce systemic inequities. This is strongly aligned with the VHA’s Federal Budget submission – which called for $50 million over 4 years to support the delivery of culturally safe care in mainstream health services.
Ms Clarke noted a significant missed opportunity is funding to build the pipeline of mental health professionals. This is vital to address the increasing demand and complexity in mental health services in rural and regional Victoria.
‘There is no funding to progress the implementation of the National Mental Health Workforce Strategy 2022-2032. It is critical we see investment that develops a stable and skilled workforce to deliver the mental health and wellbeing services Australians need now and into the future.’
Ms Clarke flagged that in 2024, the Government commissioned and received independent reviews on the scope of practice for multidisciplinary health professionals (e.g. nurses and community paramedics) and workforce provision in rural and regional Victoria. The Government is yet to respond to the recommendations of these reviews, which would enable person-centred care which addresses population health inequities, planning and coordination.
‘With the Federal election pending, we hope to see bipartisan commitment to the funding announced in this Budget, and any additional election commitments to address gaps in funding and progress against the recommendations of the Strengthening Medicare Taskforce.’
Ms Clarke said the VHA was pleased to see the Federal Government has responded to many of the priority area identified by the publicly funded healthcare sector.
‘We look forward to working with the Victorian Government to understand how these initiatives align with the upcoming Victorian State Budget, expected to be handed down in May.’
Health and primary care
$7.9 billion over four years (from 2025-26) to expand bulk billing incentives to all Australians eligible for Medicare.
$1.8 billion over five years (from 2024-25) for new and amended Pharmaceutical Benefits Scheme (PBS).
$662.6 million over five years (from 2024-25) to expand the general practice workforce.
$657.9 million over three years (from 2025-26) for 50 new Medicare Urgent Care Clinics.
Aged care
$2.5 billion over five years (from 2024–25) to meet the cost of the Fair Work Commission’s decision for aged care nurses.
$291.6 million over five years (from 2024–25) the delivery of aged care reforms and implementation of Royal Commission into Aged Care Quality and Safety recommendations.
Mental Health
$46 million over four years (from 2024-25) to continue digital mental health services.
Culturally Safe Care
$47.6 million over four years (from 2025-26) to support First Nations organisations to deliver culturally appropriate aged care assessments for First Nations people.
$24.7 million over four years from 2025-26 to improve access to culturally safe and qualified mental health support in First Nations communities.
For further information contact:
Toli Papadopoulos, Senior Public Affairs Advisor
toli.papadopoulos@vha.org.au
0408 851 302
Visit our website: www.vha.org.au