The National Rural Health Alliance (NRHA) welcomes the long-awaited agreement between the Commonwealth and States, and Territories, for the next five-year National Health ReformAgreement Addendum.
The Agreement determines how public hospitals and key health services are funded across Australia. The announcement includes an additional $25 billion nationally from the Commonwealth for public hospitals, including one‑off support for the Northern Territory, and signals stronger use of prevention, digital health and workforce support.
The National Cabinet has also agreed to an additional $2 billion to deliver Thriving Kids to be matched by States, a significant win for disability care.
NRHA Chief Executive Ms Susi Tegen outlined how the agreement matters because it directly affects whether people in rural areas can access care close to home.
“Rural Australians are sicker, die younger and rely more on hospitals, yet they consistently receive less health funding than people in cities,” Ms Tegen confirmed.
“Rural people will judge this agreement on whether it actually changes access on the ground.”
NRHA analysis shows rural Australians miss out on $8.35 billion in health funding every year, with underspend across hospitals, disability services, aged care and community health.
Ms Tegen highlighted how rural people with disability and older Australians are particularly affected. “The system is designed for cities. In rural areas, that means fewer services, higher costs and hospitals becoming the default option when other care simply isn’t available.”
The NRHA welcomes the finalisation of the agreement, but said transparency and accountability are critical. “Until we see exactly how states and territories are required to fix rural underspend, the gap will remain,” Ms Tegen added. Rural Australians are being left behind. This agreement must be the start of fair funding, not another delay.”
