The Victorian Healthcare Association (VHA) welcomes the 2026-27 Federal Budget, with targeted investments across acute, primary and aged care that aim to strengthen care through reform. This Budget delivers increased aged care and hospital funding to meet the challenges ahead, while continuing to enhance access to bulk billed care. 

‘We welcome the Federal Government’s intent to advance public healthcare during a complex period of global uncertainty. We are pleased to see investment and ongoing commitment to reform, particularly in areas of increasing demand experienced by some of our most vulnerable Victorians – aged care and urgent care. This will enhance care and assist in taking pressure off our hospitals,’ said VHA CEO Dr Leigh Clarke.  

In particular the VHA notes the following:

• An additional $25 billion for public hospitals, including $24.4 billion through the 2026-2031 National Health Reform Agreement, announced earlier in the year.
• $1.8 billion to support ongoing continuation of Medicare Urgent Care Clinics, which have supported health services to stem the flow of patients into emergency departments.  
• $1 billion for the Support at Home program to support older Australians to stay in their homes longer. This includes $336.8 million per year, ongoing, to ensure ‘personal care’ is funded for all program recipients.
• $3 billion in capital subsidies for residential aged care providers, including $30 per supported resident per day on newly constructed homes. It will be vital that aged care infrastructure in Victoria is delivered strategically, across both state and federal investments, to meet rising community need.

Dr Clarke acknowledged the Budget solidifies a commitment to increase contributions to public hospitals through the National Health Reform Agreement. This will go a long way to alleviating pressures across the health system, and the VHA looks forward to more detail around implementation.

‘The increase to public hospital funding, and many of the announcements handed down yesterday, align with the asks we developed in consultation with members across our 2026-27 Federal Budget submission and Victorian Health Investment Strategy.’

Dr Clarke said that aged care investments are a welcome step towards supporting the needs of providers through ongoing implementation of the new Support at Home Program. 
‘We welcome investment aimed at addressing the rising waiting list for community-based aged care services. We also note that the government has fully funded personal care services under Support at Home, which will assist in reducing the financial burden on older Australians for essential care.’

Critically, the Budget pursues significant reform to the National Disability Insurance Scheme (NDIS), aiming to reduce the growth of the NDIS by $37.8 billion over the next four years. In a tight fiscal environment, the VHA recognises that the Government is seeking to create a more sustainable system. While this continues, it will be essential that any changes continue to meet the needs of vulnerable Victorians. 

'The NDIS plays a critical role in supporting some of our most vulnerable. Maintaining service continuity across this period of reform will be vital. We look forward to additional detail on how disability services will be provided for Victorians under the Thriving Kids program, and highlight that Victoria’s Community Health Services are well-placed to support the program delivery,’ Dr Clarke said.

Dr Clarke noted the Federal Budget’s wider agenda around lifting productivity as a welcome development. However, the Budget papers provide limited detail on the impact to the care economy.

‘We welcome the government’s intent to support practitioners to work to their full scope and improve labour mobility. We note that compliance is essential to running safe, efficient and accountable healthcare services. However, the VHA would like to see a full review of the balance of compliance across competing systems, including acute health, NDIS, mental health and aged care compliance. Harmonising compliance across sectors would have a meaningful impact on productivity – it would remove duplication and support the Government’s productivity agenda outlined in the Budget.’

While investments to Strengthen Medicare are welcome, there are some notable missed opportunities related to the primary care workforce. Specifically, a lack of funding to expand and integrate the skills of primary and preventative care workforce, including nurses, community paramedics and allied health professionals. Additionally, while the Budget outlines measures to adjust the Medicare Benefits Schedule (MBS), an expansion of flexible funding would further support productivity. Under flexible funding models, health practitioners can collaborate more efficiently across multidisciplinary teams to provide enhanced care for vulnerable and complex patients, where system pressures are greatest.  

Dr Clarke said the VHA looks forward to working closely with the Victorian and Federal Governments over the coming year to realise investments, and support the sector in the year ahead.