Commonwealth issues health ultimatum to states

By Elle Hardy • December 12, 2025

The Albanese government has threatened to go it alone on health initiatives if states do not accept its $23bn hospital funding offer.

What we know:

  • Federal and state health ministers meet in Brisbane today to discuss an increase in the share of federal hospital funding to 42.5% by 2030, and 45% by 2035 (The Guardian). 

  • The Albanese government has offered an additional $23bn for public hospitals over the next five years, while states are holding out for $30bn (AFR).

  • Should the states fail to accept the offer, the federal government said it will spend the money on its own health agenda, including aged care and expanding Medicare urgent care clinics.

  • State and territory governments ramped up pressure on Health Minister Mark Butler, revealing 3,050 aged care patients are stranded in public hospital beds, an increase of 25% in three months (ABC).

  • The states’ report found that last financial year, the federal government delivered only 800 of the 10,600 aged care beds required annually, costing taxpayers $1.2bn.

  • Read more: Aged-care reforms have been set back by months due to cost blowouts and IT system failures (The Saturday Paper).

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