Albanese secures $25bn hospital funding deal with states and caps NDIS growth

Prime Minister Anthony Albanese and state premiers agreed a $25 billion package to boost public hospital funding over five years and to limit growth in the National Disability Insurance Scheme to 6% or less.

Prime Minister Anthony Albanese and state premiers met in Sydney and signed a $25 billion deal to fund health and hospital services across Australia. The national cabinet agreed the package will bring total public hospital spending to $219 billion over the next five years. Ministers also agreed to measures aimed at limiting growth in the National Disability Insurance Scheme to about 6% or less. The meeting included a decision to delay the Thriving Kids program to October after states said they were not ready to begin responsibility on 1 July. Agreement details: - The package is described as a $25 billion top-up to hospital funding and raises total public hospital spending to $219 billion over five years. - The government and premiers agreed to aim for NDIS growth of about 6% or less as part of budget pressure measures. - The Thriving Kids program, intended to provide foundational services for children under eight, was offered a three-month delay to an October start date, with services to be delivered through schools, clinics and community facilities. - Negotiations included funding adjustments to benefit smaller states and an extra $2 billion to help speed up hospital discharges to aged care, noting more than 3,000 people were reported waiting to transfer from hospital to aged care. - The federal share of hospital funding is planned to rise to 42.5% by 2030 and to reach 45% by 2035, according to the discussions reported. - Data cited from May 2025 noted that children under 15 made up about 43% of NDIS participants but accounted for about 13% of payments, while participants with autism or developmental delays comprised half of participants and about 23% of payments. Summary: The agreement allocates additional federal funding to state health systems and sets targets intended to restrain growth in NDIS spending, affecting both hospital budgets and disability support planning. Implementation steps include the delayed October start for the Thriving Kids program and broader NDIS access rule changes scheduled for mid-2027, with further budget and delivery arrangements to proceed through national cabinet processes.