2024-2025 Federal Budget - Health

Pharmaceutical Benefits Scheme (PBS) - New and amended listings

The Government will provide $3.4 billion over five years from 2023-24 for new and amended listings on the Pharmaceutical Benefits Scheme (PBS) and the Repatriation Pharmaceutical Benefits Scheme. Examples of new and amended PBS listings since the 2023-24 MYEFO include:

• nirmatrelvir and ritonavir (Paxlovid) and molnupiravir (Lagevrio), for the treatment of adults with COVID-19
• acalabrutinib (Calquence) from 1 January 2024, for the treatment of patients with previously untreated chronic lymphocytic leukaemia or small lymphocytic lymphoma
• lumacaftor with ivacaftor (Orkambi) from 1 January 2024, for the treatment of cystic fibrosis in one-year-old infants, homozygous for the F508del mutation
• natalizumab (Tysabri) from 1 February 2024, for the treatment of relapsing-remitting multiple sclerosis
• tebentafusp (Kimmtrak) from 1 February 2024, for the treatment of advanced melanoma of the middle layer of the eye (uvea)
• dapagliflozin (Forxiga) from 1 March 2024, for the treatment of chronic heart failure in patients with a left ventricular ejection fraction (LVEF) greater than 40 per cent
• empagliflozin (Jardiance) from 1 April 2024, for the treatment of chronic kidney disease
• niraparib (Zejula) from 1 April 2024, for the treatment of patients with newly diagnosed ovarian cancer that is Homologous Recombination Deficiency positive
• abemaciclib (Verzenio) from 1 May 2024, for the treatment of Hormone Receptor Positive, Human Epidermal Growth Factor Receptor 2 Negative Early Breast Cancer
• mavacamten (Camzyos) from 1 May 2024, for the treatment of adults with symptomatic obstructive hypertrophic cardiomyopathy
• tafamidis (Vyndamax) from 1 May 2024, for the treatment of transthyretin amyloid cardiomyopathy.

Budget Speech p 5
Budget Paper No 2 p 119
Budget Overview p 16
Budget Overview p 43, 44

Improving Aged Care Support

The Government will provide $2.2 billion over five years from 2023-24 to deliver key aged care reforms and to continue to implement recommendations from the Royal Commission into Aged Care Quality and Safety. Funding includes:

• $1.2 billion over five years from 2023-24 for sustainment of, and essential enhancements to, critical aged care digital systems so they remain legislatively compliant and contemporary and can support the introduction of the new Aged Care Act from 1 July 2025
• $531.4 million in 2024-25 to release 24,100 additional home care packages in 2024-25
• $174.5 million over two years from 2024-25 to fund the ICT infrastructure needed to implement the new Support at Home Program and Single Assessment System from 1 July 2025
• $110.9 million over four years from 2024-25 to increase the regulatory capability of the Aged Care Quality and Safety Commission as part of the Government's response to the Final Report of the Capability Review of the Aged Care Quality and Safety Commission, and to implement a new aged care regulatory framework from 1 July 2025
• $65.6 million over four years from 2024-25 to attract and retain aged care workers, collect more reliable data, and improve the outcomes for people receiving aged care services through existing aged care workforce programs
• $37.0 million over two years from 2024-25 to reduce wait times for the My Aged Care Contact Centre due to increased demand and service complexity
• $30.4 million over three years from 2024-25 to states and territories to continue to deliver the Specialist Dementia Care Program.

Budget Speech p 12, 13
Budget Paper No 2 p 112
Budget Overview p 43, 46, 47
Media Release

Strengthening Medicare

The Government will provide $1.2 billion over five years from 2023-24($14.8 million per year ongoing) to strengthen Medicare by supporting earlier discharge from hospital for older Australians, improving access to essential services, modernising Australia's digital health infrastructure and ensuring the integrity and compliance of Medicare.
Funding to support older Australians through earlier discharge from hospital includes:

• $610.4 million over four years from 2024-25 for states and territories to invest in initiatives that address long-stay older patient challenges, unique to each jurisdiction
• $190.0 million over three years from 2025-26 for the extension and redesign of the Commonwealth's Transition Care Programme to provide short-term care of up to 12 weeks for older people after a hospital stay
• $56.8 million over five years from 2023-24 for the expansion of the Commonwealth's successful Acute to Residential Care Transition Service dementia program to transition long-stay patients with behavioural psychological symptoms of dementia out of hospital into a residential aged care home
• $24.9 million over two years from 2024-25 for the continuation of the Comprehensive Palliative Care in Aged Care program to support states to deliver specialist palliative care services in residential aged care.

Budget Speech p 12
Budget Paper No 2 p 128
Budget Overview p 43, 44
Easing cost-of-living pressures p 1
Media Release

Strengthening Medicare - An effective and clinically appropriate Medicare Benefits Schedule (MBS)

The Government will provide $895.6 million over four years from 2024-25 to ensure the Medicare Benefits Schedule (MBS) remains clinically appropriate and reflects modern medical practices. Funding includes:

• $335.7 million over four years from 2024-25 to introduce two new permanent items on the MBS for Polymerase Chain Reaction (PCR) pathology testing for COVID-19 and other respiratory pathogens
• $200.2 million over four years from 2024-25 to improve primary health care and clinical practice through amendments to items on the MBS, including:
• $56.5 million over four years from 2024-25 to promote high-quality and tailored maternity care by implementing recommendations from the MBS Review Taskforce, for participating midwives

- $49.1 million over four years from 2024-25 for gynecology consultations of 45 minutes or longer with patients who have complex conditions such as endometriosis and pelvic pain

- $33.7 million over four years from 2024-25 to introduce a new MBS item to provide positron emission tomography/computed tomography (PET/CT) imaging for the assessment of treatment response and recurrence for patients with an eligible rare or uncommon cancer type.

• $174.1 million over three years from 2025-26 to introduce indexation for labour-intensive pathology services, including pregnancy and infertility testing, immunology, and tissue pathology
• $92.8 million over four years from 2024-25 to improve the viability of nuclear medicine imaging through a targeted schedule fee increase and reintroducing annual indexation, in line with other diagnostic imaging arrangements
• $69.8 million over four years from 2024-25 to remove the barriers to accessing Medicare rebates for MRI machines in metropolitan areas to reduce waiting times and costs for patients
• $23.1 million over two years from 2024-25 to extend the MBS Continuous Review program to ensure the MBS remains clinically appropriate

The Government will also achieve efficiencies of $617.4 million over four years from 2024-25, including:

• $356.3 million over three years from 2025-26 through amending MBS pathology items, in line with recommendations by the MBS Review Taskforce - Diagnostic Medicine Clinical Committee to reduce unnecessary testing to achieve better patient outcomes
• $188.8 million over four years from 2024-25 by amending the schedule fee for certain CT items to reflect recent technological advances in CT scanning that have reduced scan times for many examinations, enabling faster throughput
• $72.3 million over four years from 2024-25 by aligning the MBS to contemporary practice.

Budget Paper No 2 p 129
Media Release

Supporting Ongoing Access to Vaccines

The Government will provide $631.1 million over four years from 2024-25 (and $112.1 million per year ongoing) to support ongoing access to life-saving vaccines. Funding includes:

• $490.0 million over four years from 2024-25 (and $107.4 million per year ongoing) to continue the National COVID-19 Vaccine Program
• $82.5 million over three years from 2025-26 to ensure ongoing joint responsibility with states and territories for vaccination programs
• $57.7 million over four years from 2024-25 (and $4.8 million per year ongoing) to expand the eligibility of Shingrix for the prevention of shingles and postherpetic neuralgia in individuals at moderate to high risk of severe infection.

Budget Paper No 2 p 130
Budget Overview 43, 44

Preventive Health

The Government will provide $514.8 million over four years from 2024-25 to support preventive and other health initiatives. Funding includes:

• $303.9 million over two years from 2024-25 to ensure the National Medical Stockpile can continue to respond to health emergencies and improve pandemic preparedness
• $55.3 million over three years from 2024-25 to maintain the National Critical Care and Trauma Response Centre which is Australia's centre of excellence for health disaster response
• $41.6 million over two years from 2024-25 to continue support for the Good Sports Program, an alcohol management program for community sporting clubs, alcohol and other drugs treatment services in areas of identified need, and fetal alcohol spectrum disorder diagnostic and support services in remote and rural regions
• $25.0 million over four years from 2024-25 to continue work to increase the number and consistency of conditions screened through the newborn bloodspot screening programs
• $22.3 million over four years from 2024-25 to continue funding for the Antimicrobial Use and Resistance in Australia project which monitors antimicrobial use and resistance
• $22.1 million over two years from 2024-25 to continue support for preventive health and chronic disease research including patient and clinician services for Australians with chronic conditions, in support of the National Preventive Health Strategy 2021-2030.

Budget Paper No 2 p 121
Budget Overview p 44

Mental Health

The Government will provide $888.1 million over 8 years from 2024-25 (and $139.8 million per year ongoing) to respond to the Better Access evaluation and to strengthen Australia's mental health and suicide prevention system. Funding includes:

• $588.5 million over eight years from 2024-25 (and $113.4 million per year ongoing) to establish a national low-intensity digital mental health service that is free of charge and free of need for referral
• $71.7 million over four years from 2024-25 (and $24.4 million per year ongoing) to provide wrap-around care for people with severe and/or complex needs in primary care settings, through design and delivery of mental health multidisciplinary services
• $35.9 million over four years from 2024-25 to extend terminating mental health measures, to enhance the delivery of mental health and suicide prevention services and to provide greater funding certainty for service providers
• $29.9 million over four years from 2024-25 to uplift Head to Health services to expand access to free community-based mental health services for adults with moderate to severe mental health needs
• $29.7 million over three years from 2024-25 to improve child and youth mental health services through uplifting workforce capability and co-designing new models of care.

Budget Speech p 12
Budget Paper No 2 p 116
Budget Overview p 45
Delivering a better deal for small businesses p 2
Media Release

Medical Research

The Government has committed an additional $1.4 billion over 13 years from 2024-25 through the Medical Research Future Fund (MRFF) to continue to invest in life-saving medical research in Australia, for a total commitment through the MRFF of $6.4 billion over 13 years in research funding across the following themes:

• an additional $377.5 million (for a total contribution of $2.0 billion over 10 years from 2024-25) to translate research outcomes into medical practice
• an additional $411.6 million (for a total contribution of $1.6 billion over 13 years from 2024-25) to continue existing research missions and introduce two new 10-year research missions from 2027-28 for low-survival cancers and reducing health inequities.
  
  Funding includes:
  • $306.0 million to continue existing research missions and fund the two new missions to 2033-34
  • $105.6 million over three years from 2034-35 to continue support for the two new missions
• an additional $329.6 million (for a total contribution of $1.4 billion over 10 years from 2024-25) for patient-centred research including emerging priorities in areas such as women's health, and supporting innovative treatments, clinical trials, and more advanced healthcare
• an additional $269.6 million (for a total contribution of $1.3 billion over 10 years from 2024-25) for medical researchers to make breakthrough discoveries, develop their skills and progress their careers in Australia.

Budget Paper No 2 p 115
Budget Overview p 45

Securing Cheaper Medicines

The Government will provide $480.2 million over five years from 2023-24 to reduce patient costs and improve access to medicines. Funding includes:

• $318.0 million over five years from 2023-24 (and an additional $166.4 million in 2028-29) as part of the Eighth Community Pharmacy
  
  Agreement for:
  • PBS general co-payments to not be indexed between 1 January 2025 and 31 December 2025 (inclusive), with indexation resuming on 1 January 2026
  • PBS concessional co-payments to not be indexed between 1 January 2025 and 31 December 2029 (inclusive), with indexation resuming on 1 January 2030

The $1 optional discount available on patient co-payments for subsidised prescriptions will be reduced each year by the relevant notional indexation amount until the $1 discount has been reduced from $1 to zero.

• $151.1 million over five years from 2023-24 (and an additional $45.6 million in 2028-29), as part of the Eighth Community Pharmacy Agreement to increase the Dose Administration Aids cap to 90 per week.

Budget Speech p 5
Budget Paper No 2 p 124
Budget Overview p 16
Budget Overview p 45
Easing cost-of-living pressures p 2
Media Release

National Disability Insurance Scheme - Getting the NDIS back on track

The Government is committed to improving outcomes for National Disability Insurance Scheme (NDIS) participants and ensuring every dollar of NDIS funding goes to those who need it most. The Government will provide $468.7 million over five years from 2023-24 (and $37.9 million per year ongoing) to support people with disability and get the NDIS back on track. Funding includes:

• $160.7 million over four years from 2024-25 (and $24.6 million per year ongoing) to upgrade the NDIS Quality and Safeguards Commission's information technology systems, to better protect the safety of NDIS participants, reduce regulatory burden on NDIS providers, and improve cyber security
• $129.8 million over two years from 2023-24 for design and consultation work to respond to the findings of the Independent NDIS Review
• $83.9 million over two years from 2023-24 to boost fraud-detecting information technology systems at the National Disability Insurance Agency (NDIA), to further safeguard the integrity of the NDIS
• $45.5 million over four years from 2024-25 (and $13.3 million per year ongoing) to establish a NDIS Evidence Advisory Committee, to provide independent and transparent advice to Government on the efficacy and cost-benefits of types of supports funded by the NDIS
• $23.5 million over two years from 2024-25 for Services Australia to continue fraud investigation and response activities as part of the Fraud Fusion Taskforce
• $20.0 million over two years from 2024-25 for initial design and consultation work on reforms to help participants and people with disability navigate services

The Government will also establish a NDIS Implementation Advisory Committee and a NDIS Implementation Working Group, to oversee implementation of reforms recommended by the Independent NDIS Review and agreed by Government.

As an initial response to the Independent NDIS Review, on 6 December 2023 National Cabinet agreed to work together to implement legislative and other changes to the NDIS to improve the experience of participants and restore the original intent of the Scheme to support people with permanent and significant disability, within a broader ecosystem of supports.

On 27 March 2024 the Government introduced the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track) Bill 2024 No. 1 (the Bill) to Parliament. Changes in the Bill are aimed at securing the future of the NDIS and progressing key Independent NDIS Review recommendations. The Bill will help the NDIS get back on track by determining NDIS participant plan budgets more consistently based on participant need, supporting participants to spend in accordance with their plans, clarifying the information that participants need to provide to support plan reassessments, and clarifying what types of supports can be funded. The Bill also provides more flexibility on how the NDIS Commissioner can take action to protect NDIS participants from abuse, harm and neglect.

Based on data up to December 2023, the NDIS Actuary projected that without further action, NDIS payments would increase by $14.4 billion over four years from 2024-25. The NDIS reforms being undertaken by the Government are expected to moderate this additional growth to that projected at the 2023-24 MYEFO, and ensure the NDIS remains on track to achieve the NDIS Sustainability Framework agreed by National Cabinet from 1 July 2026.

The Government has already provided partial funding for this measure. Additional costs will be partially met from within the existing resourcing of the Department of Social Services, the NDIA, and the Independent Health and Aged Care Pricing Authority.

Budget Speech p 12, 13
Budget Paper No 2 p 172
Budget Overview p 43, 48
Media Release

Australian Institute of Sport Site Redevelopment

The Government will provide a total of $259.7 million over three years from 2024-25 to revitalise the Australian Institute of Sport located in Bruce, Canberra, including:

• $249.7 million over three years from 2024-25 for the Australian Sports Commission to revitalise the Australian Institute of Sport
• $10.0 million over two years from 2024-25 for the Department of Infrastructure, Transport, Regional Development, Communications and the Arts to work with the Australian Capital Territory Government to develop a Bruce Precinct Masterplan and identify optimal land uses within the precinct.

Budget Paper No 2 p 109

Strengthening Medicare - Medicare Urgent Care Clinics - additional funding

The Government will provide $227.0 million over three years from 2023-24 to boost the capacity of Medicare Urgent Care Clinics. This will include a further 29 Medicare Urgent Care Clinics across Australia, which will take the total number of Medicare Urgent Care Clinics to 87. The Government is also providing additional support to clinics in regional and rural Australia.

Medicare Urgent Care Clinics reduce pressure on hospital emergency departments by supporting Australians to access care for urgent, but not life-threatening conditions.

All Medicare Urgent Care Clinics are open during extended business hours with no appointments or referrals required, and with no out-of-pocket costs.

Budget Speech p 12
Budget Paper No 2 p 128
Regional Ministerial Budget Statement p 8
Media Release

Digital ID

The Government will provide $288.1 million over four years from 2024-25 to support the initial delivery of the Digital ID system and support more Australians to realise Digital ID's economic and privacy benefits. Funding includes:

• $155.6 million over two years from 2024-25 to the Australian Taxation Office (ATO) to continue operating and improving the Government's Digital ID, myGovID, and the system which supports authorised access to a range of government business services
• $46.0 million over two years from 2024-25 to Services Australia to continue operating and improving the identity exchange which enables transactions across the Australian Government Digital ID System and performs the function of Digital ID System Administrator
• $35.2 million over two years from 2024-25 to the Department of Finance to continue policy leadership and governance of the Digital ID program
• $23.4 million over two years from 2024-25 for the ATO, Department of Finance and Services Australia to pilot the use of government digital wallets and verifiable credentials.

Budget Paper No. 2 p 97
Budget Paper No. 4 p 11
Media Release

National Strategies for Bloodborne Viruses and Sexually Transmissible Infections - Continuation and expansion

The Government will provide $126.5 million over two years from 2024-25 to extend and expand activities to support the prevention, testing and treatment of bloodborne viruses and sexually transmissible infections, including support for First Nations communicable disease services. Funding includes:

• $32.3 million over two years from 2024-25 to continue support and promote vaccination uptake in First Nations communities
• $28.6 million over two years from 2024-25 to continue support and expand syphilis and sexually transmissible infections testing in First Nations communities
• $17.5 million over two years from 2024-25 to support continued delivery of the national bloodborne viruses and sexually transmissible infections strategies, including to implement culturally-safe sexual health services for First Nations peoples
• $16.5 million over two years from 2024-25 to continue and expand communicable disease molecular point of care testing for First Nations, rural and remote communities.

Budget Speech p 15
Budget Paper No 118
Budget Overview p 54

Health Workforce

The Government will provide $116.2 million over five years from 2023-24 to strengthen and support the health workforce. Funding includes:

• $90.0 million over three years from 2023-24 to fund the implementation of the health-related recommendations of the Independent review of Australia's regulatory settings relating to overseas health practitioners (the Kruk Review) to grow and support the health workforce. This funding is a component of the $1.2 billion package of Strengthening Medicare measures agreed upon at National Cabinet in December 2023 and has been developed in consultation with the states and territories.
• $17.4 million in 2024-25 to extend the General Practice Incentive Fund until 30 June 2025 to improve access to primary care in thin markets.

Budget Speech p 12
Budget Paper No 2 p 111
Budget Overview p 43, 46, 47
Media Release

Improving Cancer Outcomes

The Government will provide $71.0 million over four years from 2024-25 to continue support services, programs and research to improve cancer outcomes for Australians, in line with the Australian Cancer Plan. Funding includes:

• $38.8 million over four years from 2024-25 to the states and territories to continue the
  Federation Funding Agreement for the Participant Follow-up Function of the National
  Bowel Cancer Screening Program
• $15.0 million over two years from 2024-25 to continue the national skin cancer prevention campaign.

Budget Paper No 2 p 113

Response to HIV Taskforce Recommendations - Eliminating HIV in Australia

The Government will provide $43.9 million over three years from 2024-25 to expand activities that address priorities identified in the Human Immunodeficiency Virus (HIV) Taskforce Report recommendations. Funding includes:

• $26.0 million over two years from 2025-26 for subsidised pre-exposure prophylaxis (PrEP) HIV prevention medication for people living in Australia without access to Medicare.

Budget Paper No 2 p 123

Women's Health

The Government will provide $56.1 million over four years from 2024-25 (and $0.4 million per year ongoing) to improve access to sexual and reproductive healthcare for women in Australia across the life-course, including support for women's health services on miscarriages, pre-term or early-term births, stillbirths, early pregnancy and menopause. Funding includes:

• $12.5 million over four years from 2024-25 to provide free menstrual hygiene products to rural and remote First Nations communities to alleviate some cost of living pressures for vulnerable populations
• $8.0 million over three years from 2024-25 to support the development of datasets on miscarriages and sexual and reproductive health, and evaluation activities for early pregnancy assessment services.

Budget speech p 5
Budget Paper No 2 p 132
Budget Overview p 52
Women's Budget Statement p 63-75
Media Release

Management of Torres Strait and Papua New Guinea Cross-Border Health Issues

The Government will provide $31.4 million over four years from 2024-25 to continue programs to prevent, protect and control communicable diseases in the Torres Strait Islands and Far North Queensland. Funding includes:

• $23.1 million over four years from 2024-25 to continue funding health facilities in the Torres Strait and the broader Queensland health system to provide health services to Papua New Guinea nationals who travel through the Torres Strait Protected Zone
• $4.5 million over four years from 2024-25 to continue funding for primary healthcare staff and healthcare workers to reduce the risks and prevalence of communicable diseases, blood-borne viruses and sexually transmissible infections in the Torres Strait region
• $3.8 million over four years from 2024-25 to continue funding for exotic mosquito control and prevention activities in the Torres Strait Protected Zone and awareness of associated mosquito-borne diseases.

Budget Paper No 2 p 114