Housing and tax may have been the top-ticket item in the 2026 budget papers, but look closely and you’ll find a suite of health measures that shed light on the federal government’s priorities for the remainder of this term of government.

Affordability of care and access to cutting edge treatments were hot topics ahead of the fiscal statement. Yet, the medicines industry’s recent calls for a plan to enact reforms to Australia’s PBS processes [link here] and the threat of possible specialist fee caps continue to hang in the air [link here].

Details were thin on the ground on those issues – though there are signs Health Minister Mark Butler is pushing ahead with the focus on specialist affordability.

Just over $2 million was set aside for the next financial year “to commission specialist advice to inform the development of future specialist affordability reform”, suggesting we’ll be hearing more about the plan in the coming months.

Health minister Mark Butler is eyeing specialist fee reform.

National Disability Insurance Scheme reforms will be keeping the health portfolio busy in coming months, with $36.2 billion in savings found through a bid to limit the program’s growth over the next four years.

Meanwhile, the budget papers revealed several smaller projects geared towards cementing the urgent care clinic model, reducing fraud and misuse of the Medicare Benefits Scheme and investments in aged and home care programs.

These announcements were met with a somewhat lukewarm response from clinicians. The Royal Australian College of GPs said “small health wins” were on offer, though the college wanted to see a greater focus on health, while the Australian Medical Association said the papers contained little to address the “critical issues” facing the sector.

Here’s your five-minute guide to some of the more notable health announcements:

Urgent care and general practice 

Medicare Urgent Care clinics, a flagship government policy, will be made permanent through $1.8 billion of funding over the coming years. There will also be an extra $47.6 million to increase the Radiation Oncology Health Program Grants Scheme, which is targeted towards helping concession card holders access affordable cancer treatment.

Six fully bulk-billed clinics will be funded in the Central Coast, Newcastle, Lake Macquarie, and Hunter regions to the tune of $25.3 million – though the RACGP was “less enthusiastic” about this call, questioning whether it would cause market disruption for existing practices in these areas.

Clinicians will also be supported to help identify developmental concerns earlier, with $126.1 million to fund a three‑year old health assessment geared towards picking up developmental delay or neurodevelopmental differences sooner.

Strengthening the integrity of Medicare 

A $146.8 million commitment over four years will help the department “to improve non‑compliance and fraud detection, disruption and prevention efforts in relation to the Medicare Benefits Schedule and Pharmaceutical Benefits Scheme”.

This is a response to recommendations from the 2022 Independent Review of Medicare Integrity and Compliance, which found the complexity and disjointed nature of Medicare systems were largely to blame for wastage and incorrect billing across the system.

And strengthening Medicare’s IT systems… 

Then there’s $745.1 million over four years to improve ‘Medicare systems and infrastructure’.

This includes $598.3 million for continued enhancements to My Health Record, which will help prepare the ground for the Modernising My Health Record (Sharing by Default) laws. The legislation mandates the upload of a variety of diagnostic and clinical data to My Health Record from this year [link here].

New PBS listings 

Medicines access has been a tense topic as the sector waits for HTA reforms, but the budget papers show $5.9 billion in the coming years for new and expanded PBS listings since the end of last year.

This includes the listing of adalimumab for juvenile idiopathic arthritis in January, the expansion of nivolumab and ipilimumab in March for unresectable advanced or metastatic cancer, and elranatamab for relapsed or refractory multiple myeloma, which was listed in April.

PHI rebate cut for older Australians 

The government stands to find $3 billion in savings over four years by removing age as a determinant for the private health insurance rebate from April 2027, meaning millions of Australians aged over 65 will pay higher premiums.

It’s a move staunchly opposed by groups like Private Healthcare Australia, with arguments patients will be forced to downgrade their policies and that the move hits Australians in regional areas hardest.

The budget papers indicate savings found from this measure will be redirected to residential aged care beds.

Care for older Australians 

Meanwhile, a $565.5 million package geared towards older Australian patients will include $259.9 million to improve IT systems in aged care and $11.5 million for the National Centre for Monitoring Dementia, to track progress on Australia’s National Dementia Action Plan.

There’s also $224.3 set aside for dementia care support programs over four years, including growing the ‘Hospital to Aged Care Dementia Support’ scheme from 11 sites across the country to 20 locations.

A $1.4 billion pledge was made for Home Care supports, with a focus on funding personal care for all patients in the “support at home” program.

Vaccine access 

The government’s pledge to extend RSV vaccines to Australians over 75 and Aboriginal and Torres Strait Islander people over 60 will come with a $449.3 million  price tag, while $41.2 million will also go towards improving vaccine access for children, including expanding the Vaccinations in Pharmacy program to kids aged five and under.