2023-2024 Federal Budget - Health

Health

Strengthening Medicare

The Government will provide $5.7 billion over 5 years from 2022-23 as an initial investment to provide better access and more affordable care for patients in response to the Strengthening Medicare Taskforce Report.

• $3.5 billion over 5 years from 2022-23 to address the decline in general practitioners' bulk billing of patients on low incomes, and children. This funding will triple the bulk billing incentive benefits for consultations for Commonwealth concession card holders and patients aged under 16 years of age. These increased incentives would apply to:
  • all face-to-face general practice consultations more than 6 minutes in length
  • all telehealth general practice services which are between 6 and 20 minutes in length (Level B consultations)
  • longer telehealth general practice consultations where a patient is registered with their GP through MyMedicare
• $445.1 million over 5 years from 2022-23 to increase funding for the Workforce Incentive Program-Practice Stream, to both increase the maximum incentive payment to $130,000 per practice, per annum and make more general practices eligible for the maximum payment. This funding will support practices to expand multidisciplinary teams and employ more nurses, allied health and other health professionals in practices
• $143.9 million over two years from 2023-24 to improve access to primary care after hours programs, comprising:
  • $77.9 million to extend the Primary Health Networks (PHN) After Hours Program to support general practices to fill access gaps
  • $25.4 million to establish a Homelessness Support Program to support homeless people's access to primary care services
• $98.9 million over 4 years from 2023-24 to connect frequent hospital users to a general practice to receive comprehensive, multidisciplinary care in the community which will reduce the likelihood of hospital re-admission
• $79.4 million over 4 years from 2023-24 to support PHNs to commission allied health services to improve access to multidisciplinary care for people with chronic conditions in underserviced communities
• $60.2 million in 2023-24 to extend Practice Incentive Program-Quality Improvement payments for an additional year to 30 June 2024, and to undertake an intensive review of all general practice incentive programs
• $29.1 million over two years from 2023-24 to support the Royal Flying Doctor Service to deliver essential services to people living in remote communities through additional primary care visits and increased aeromedical evacuations

Funding to support the expansion of national digital infrastructure includes:

• $429.0 million over two years from 2023-24 to modernise My Health Record (MHR) by creating a new National Repository platform that supports easier, more secure data sharing across all healthcare settings, investment to improve the sharing of pathology and diagnostic imaging information, and targeted investment to increase allied health professionals' connection to MHR
• $325.7 million over 4 years from 2023-24 (and approximately $79.9 million per year ongoing), to establish the Australian Digital Health Agency (ADHA) as an ongoing entity to deliver on the Government's commitment to strengthen Medicare. This measure will also fund a review of the ADHA's enabling legislation to ensure the agency remains fit for purpose
• $69.7 million over 4 years from 2023-24 (and $4.2 million per year ongoing) to respond to recommendations made in the Strengthening Medicare Taskforce Report, and the Independent Review into Medicare Integrity and Compliance to digitise additional health services, and better connect health data to improve access to services for customers and health professionals.

Funding to grow and upskill the medical and health workforce and improve access to essential services by investing in training, workforce incentives and trials for innovative models of care, includes:

• $50.2 million over 4 years from 2023-24 to establish the Primary Care and Midwifery Scholarships program to support registered nurses and midwives to undertake post-graduate study and improve their skills
• $46.8 million over 4 years from 2023-24 to recognise the important role nurse practitioners and participating midwives play in the delivery of health care services, through:
  • increasing Medicare Benefits Schedule (MBS) schedule fees for standard nurse practitioner attendance items
  • expanding the eligibility for MBS case conferencing items to enable nurse practitioners to participate in allied health multidisciplinary case conferences
  • removing the legislated requirement for collaborative arrangements between participating midwives, nurse practitioners and medical practitioners to prescribe Pharmaceutical Benefits Scheme medications
• $34.6 million over two years from 2023-24 to enable non-vocationally recognised doctors to receive MBS rebates under the Other Medical Practitioner Program
• $31.6 million over two years from 2023-24 to trial enhanced training arrangements to support international medical students working in rural and remote locations

Budget Speech p 7
Budget Paper No 2 p 147
Budget Overview p 23-27
Regional Ministerial Budget Statement p 44
Women's Budget Statement p 75
Cost-of-Living Relief Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Improving the Investment in Aged Care

The Government will temporarily reduce the residential aged care provision ratio from 78.0 places to 60.1 places per 1,000 people aged over 70 years. The reduction in the ratio reflects the increasing preference of older Australians to remain in their homes and will save $2.2 billion over 3 years from 2024-25. The savings from this measure will be redirected to the Government's commitments to the health and aged care portfolio.

Budget Speech p 7
Budget Paper No 2 p 137
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Reinvesting in Health and Aged Care Programs

The Government has identified $1.7 billion over 4 years from 2023-24 (and $422.9 million ongoing) from health and aged care programs which will be reinvested in new or expanded health and aged care services.

Budget Paper No 2 p 146
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Pharmaceutical Benefits Scheme (PBS) New and Amended Listings

The Government will provide $2.2 billion over 5 years from 2022-23 for new and amended listings on the Pharmaceutical Benefits Scheme (PBS), the Repatriation Pharmaceutical Benefits Scheme, the Life Saving Drugs Program, the National Epidermolysis Bullosa Dressing Scheme and the Stoma Appliance Scheme. The cost of some medicines listed will be reduced by revenue from rebates negotiated as part of purchase agreements.

Budget Speech p 4
Budget Paper No 2 p 142
Budget Overview p 15
Women's Budget Statement p 76
Regional Ministerial Budget Statement p 50
Cost-of-Living Relief Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

Reducing Patient Costs and Improving Services through Community Pharmacies

The Government will provide $1.3 billion over 5 years from 2022-23 and deliver savings of $1.3 billion over 4 years from 1 July 2023 to reduce patient costs and improve access to medicines and related services delivered by community pharmacies. Funding includes:

• $654.9 million over 4 years from 2023-24 (and $168.4 million ongoing) for community pharmacy programs under the Seventh Community Pharmacy Agreement (7CPA)
• $377.3 million over 4 years from 2023-24 (and $98.4 million ongoing) to make patient access more affordable under the Pharmaceutical Benefits Scheme (PBS) Opioid Dependence Treatment program
• $111.8 million over 4 years from 2023-24 (and $24.2 million ongoing) to provide electronic-prescription delivery infrastructure and services, including mandating the use of e-prescribing for high-risk and high-cost medicines subsidised under the PBS
• $114.1 million over 5 years from 2022-23 (and $31.0 million ongoing) to subsidise community pharmacies to administer eligible National Immunisation Program vaccines.

Budget Speech p 5
Budget Paper No 2 p 145
Budget Overview p 15 Cost-of-Living Relief Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

COVID-19 Aged Care Response

The Government will provide additional funding of $591.3 million over two years from 2022-23 to continue the Government's response to COVID-19 in aged care. Funding includes:

• $536.6 million over two years from 2022-23 to reimburse aged care providers for additional costs incurred due to COVID-19 outbreaks that occur on or before 31 December 2023
• $41.3 million over two years from 2022-23 to extend access to in-reach PCR testing in residential aged care homes to 31 December 2023
• $13.4 million in 2023-24 to reimburse aged care providers for the cost of leave entitlements for casual staff and those who have no other access to leave payments where staff cannot attend work due to being COVID-19 positive.

Budget Speech p 7
Budget Paper No 2 p 126
Budget Overview p 58
Cost-of-Living Relief Fact Sheet
Empowering Aboriginal and Torres Strait Islander people Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Improving Aged Care Support

The Government will provide $827.2 million over 5 years from 2022-23 to continue to improve the delivery of aged care services and respond to the Final Report of the Royal Commission into Aged Care Quality and Safety. Funding includes:

• $487.0 million over 4 years from 2023-24 (and $133.6 million ongoing) to extend, and make ongoing, the Disability Support for Older Australians Program
• $112.0 million over 4 years from 2023-24 to introduce a new General Practice in Aged Care incentive payment to improve general practitioner attendance and continuity of care in residential aged care homes, and to reduce avoidable hospitalisations
• $98.7 million over two years from 2023-24 for a new Market Adjustment Program and to provide business advisory services to improve the viability of the residential aged care sector
• $81.9 million over 3 years from 2023-24 to develop and implement a new Aged Care Act to support aged care sector reform and undertake discovery and design of associated ICT system changes
• $41.3 million over 4 years from 2023-24 (including $11.9 million in capital funding from 2022-23) to build a new place assignment system, allowing older Australians to select their residential aged care provider

Budget Speech p 7
Budget Paper No 2 p 134
Budget Overview p 58
Regional Ministerial Budget Statement p 49
Cost-of-Living Relief Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Mental Health

The Government will provide $556.2 million over 5 years from 2022-23 (and $36.0 million ongoing) to strengthen Australia's mental health and suicide prevention system. Funding includes:

• $260.2 million over two years from 2023-24 to extend Commonwealth psychosocial supports for people with severe mental illness who are not in the National Disability Insurance Scheme
• $136.0 million over 4 years from 2023-24 (and $36.0 million ongoing) to support the mental health of survivors of torture and trauma before moving to Australia on humanitarian grounds, through the Program of Assistance for Survivors of Torture and Trauma, and other culturally and linguistically diverse communities
• $91.3 million over 5 years from 2022-23 for additional psychology placements, including 500 psychology post-graduate placements, 500 one-year internships, and 2,000 supervisor training sessions (1,000 of which will be refresher places), and a redesign of psychology higher education pathways

Budget Paper No 2 p 139
Budget Overview p 60
Regional Ministerial Budget Statement p 51
Women's Budget Statement p 73
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Funding Pay Increases for Aged Care Workers

The Government will provide $515.0 million over 5 years from 2022-23 (and $956.9 million over 10 years from 2022-23) to fund the outcome of the Fair Work Commission's decision on the Aged Care Work Value Case. The decision was to increase award wages by 15 per cent from 30 June 2023 for many aged care workers including registered nurses, enrolled nurses, assistants in nursing, personal care workers, home care workers, recreational activity officers, and some head chefs and cooks. Funding includes:

• $311.2 million for a new grant program for Commonwealth Home Support Programme providers to cover the cost of the increase in award wages
• $98.7 million for a new grant program to fund historical leave provisions for Commonwealth-funded aged care providers
• $58.9 million for a targeted indexation boost to funding for the Indigenous Employment Initiative, Multi-Purpose Service Program, National Aboriginal and Torres Strait Islander Flexible Aged Care Program, and Trusted Indigenous Facilitators program
• $6.7 million for a transition grant to provide temporary viability support for residential aged care providers
• $2.0 million for a transition grant to cover any potential shortfall for care recipients under the Home Care Packages Program
• $37.4 million in implementation costs for the Department of Health and Aged Care and Services Australia.

This measure will be partially offset by redirecting funding from the 2023-24 Budget measure titled Improving the Investment in Aged Care. The Budget also includes $10.9 billion over 5 years from 2022-23 (and $29.2 billion over 10 years from 2022-23) to meet the cost of the Aged Care Work Value case with funding to other aged care programs including residential aged care and the Home Care Packages Program, which will be delivered through increases that will flow through program indexation.

Budget Speech p 7
Budget Paper No 2 p 131
Budget Overview p 20
Cost of Living Fact Sheet
Media Release

Vaping Regulation Reform and Smoking Cessation Package

The Government will provide $511.1 million over 4 years from 2023-24 (and $101.1 million ongoing) for a new national lung cancer screening program, nicotine vaping product regulation and reform, and cessation support activities for tobacco and vaping use. Funding includes:

• $263.8 million over 4 years from 2023-24 (and up to $101.1 million per year ongoing) to establish and maintain a national lung cancer screening program, including program design, implementation and monitoring, National Cancer Screening Register expansion, communications, workforce training and updated clinical guidance
• $141.2 million over 4 years from 2023-24 to expand the Tackling Indigenous Smoking program to prevent the uptake, and reduce the prevalence, of vaping by First Nations Australians
• $63.4 million over 4 years from 2023-24 for national public health campaigns to prevent uptake and reduce smoking and vaping, including additional funding provisioned in the Contingency Reserve for a targeted youth campaign

Budget Paper No 2 p 154
Budget Overview p 27
Empowering Aboriginal and Torres Strait Islander people Fact Sheet
Regional Ministerial Budget Statement p 48
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

National Immunisation Program

The Government will provide funding of $449.4 million over 5 years from 2022-23 (and $118.0 million ongoing) and deliver efficiencies of $74.1 million over 4 years from 2023-24 (and $18.1 million ongoing) for new and amended listings on the National Immunisation Program (NIP).

Funding of $446.5 million over 5 years from 2022-23 (and $117.7 million ongoing) will be provided for Shingrix to replace Zostavax on the NIP for the prevention of herpes zoster virus (shingles) in a wider range of eligible patients.

From 1 July 2023, Gardasil9, for the prevention of Human Papillomavirus, will be available to eligible patients up to the age of 25. The recommended dose schedule for some patients will reduce from 2 to one, resulting in efficiencies of $71.2 million over 5 years (and $17.8 million ongoing).

Budget Speech p 8Budget Paper No 2 p 141
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

Improving Health Outcomes for Aboriginal and Torres Strait Islander people

The Government will provide $363.1 million over 4 years from 2023-24 to support its commitment to close the gap in Aboriginal and Torres Strait Islander peoples' health and wellbeing outcomes, and improve outcomes in aged care. Funding includes:

• $238.5 million over 4 years from 2023-24 to improve First Nations cancer outcomes through building capability and growing the healthcare workforce to improve screening and prevention activities, coordination, access support and research and data collection
• $77.3 million over 4 years from 2023-24 to improve outcomes for Aboriginal and Torres Strait Islander people in aged care, including:
  • $52.1 million over two years from 2023-24 to increase the funding available to aged care providers in very remote areas under the National Aboriginal and Torres Strait Islander Flexible Aged Care Program by calculating funding levels for residential care services using the Australian National Aged Care Classification price

Budget Speech p 11
Budget Paper No 2 p 135
Budget Overview p 53
Regional Ministerial Budget Statement p 45
Empowering Aboriginal and Torres Strait Islander people Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Implementing Aged Care Reform - home care

The Government will provide additional funding of $338.7 million over 4 years from 2023-24 to improve the in-home aged care system. Funding includes:

• $166.8 million in 2023-24 to release an additional 9,500 Home Care Packages
• $73.1 million in 2023-24 for the design, build, implementation and sustainment of the ICT changes necessary to enable the new Support at Home Program
• $71.5 million over 4 years from 2023-24 for the Independent Health and Aged Care Pricing Authority to undertake pricing and costing research activities to develop efficient unit prices annually for the Support at Home Program
• $15.7 million over two years from 2023-24 to establish a single aged care assessment system, including the establishment of a First Nations assessment workforce
• $10.9 million in 2024-25 to run a trial to test products and services for a new assistive technologies loan program, commencing in July 2024 within 2 states and territories

Budget Speech p 7
Budget Paper No 2 p 133
Budget Overview p 58
Cost-of-Living Relief Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Aged Care Regulatory Reform

The Government will provide additional funding of $309.9 million over 5 years from 2022-23 to implement the recommendations from the Royal Commission into Aged Care Quality and Safety and other initiatives to strengthen the regulation of the aged care sector and improve the health and safety of older Australians receiving aged care. Funding includes:

• $139.9 million over 4 years from 2023-24 to improve the accountability and transparency of approved aged care providers through enhancements to the Star Rating system
• $72.3 million in 2023-24 to support the development and implementation of a new, stronger Aged Care Regulatory Framework to support the new Age Care Act which is due to commence from 1 July 2024
• $59.5 million over 5 years from 2022-23 to fund the ICT infrastructure to establish a national worker screening and registration scheme from 1 July 2024
• $25.3 million in 2023-24 to ensure the Aged Care Quality and Safety Commission is appropriately resourced to deliver its audit and compliance program in 2023-24

Budget Speech p 7
Budget Paper No 2 p 125
Budget Overview p 58
Cost-of-Living Relief Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Long Term Dental Funding Reform Developmental Work and Interim Funding

The Government will provide $219.4 million over 4 years from 2023-24 to progress work on longer-term adult public dental reform, extend the existing Public Dental Services for Adults funding agreement to 30 June 2025, and fund the 2023.2026 National Dental Care Survey. The Public Dental Services for Adults funding agreement supports dental health services for adults who rely on the public dental system, through the states and territories.

Budget Paper No 2 p 138
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

Modern and Clinically Appropriate Medicare Benefits Schedule

The Government will provide $137.2 million over 5 years from 2022-23 to ensure better targeted and more effective health care, and provide certainty that the Medicare Benefits Schedule (MBS) remains clinically appropriate, including:

• $125.6 million over 5 years from 2022-23 to improve access to primary health care services and improve clinical practice through amendments to the MBS

The Government will also achieve efficiencies of $461.3 million over 5 years from 2022-23, including:

• $301.9 million over 3 years from 2024-25 by streamlining and modernising Chronic Disease Management planning items and improving associated regulations from 1 November 2024, consistent with recommendations from the MBS Review Taskforce
• $151.7 million over 5 years from 2022-23 by reforming the MBS time-tiered general attendance items for general practice, including:
  • $250.8 million of efficiencies to introduce a minimum consultation time for Level B items for general practitioners (GPs) to promote consistency in GP billing practices,
  • $99.1 million to establish a new MBS item for a longer consultation of 60 minutes or more to support improved access and service affordability for patients with chronic conditions and complex needs

Budget Speech p
Budget Paper No 2 p 123
Budget Overview p 23-27
Cost-of-Living Relief Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

COVID-19 Response

The Government will provide additional funding over 5 years from 2022-23 to expand the COVID-19 vaccine strategy and provide Australians with COVID-19 treatments. Funding includes:

• $757.4 million over two years from 2022-23 to ensure access to a range of vaccine administration channels, including community pharmacies, Primary Health Networks and the Vaccine Administration Partnership Program
• $285.5 million over two years from 2022-23 to protect priority groups from COVID-19, by providing states and territories 50 per cent of the cost for Polymerase Chain Reaction (PCR) testing and agreed price per COVID-19 vaccination dose delivered for Australians most at risk of severe COVID-19 and death
• $250.5 million over two years from 2022-23 to extend Medicare Benefits Schedule (MBS) items for PCR pathology testing for COVID-19 and other respiratory pathogens to 31 December 2023
• $160.2 million over two years from 2022-23 for additional COVID-19 vaccine procurement and logistic arrangements, and to extend the Essential Vaccines Schedule
• $61.6 million over two years from 2022-23 to continue resourcing for the National COVID-19 Vaccine Program
• $57.3 million over two years from 2022-23 to extend support for First Nations Australians to access COVID-19 testing and vaccinations to 30 June 2024
• $43.0 million over two years from 2022-23 to invest in ICT infrastructure to prepare for future pandemic events and extend existing COVID-19 programs

Budget Paper No 2 p 127
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

Establish the Australian Centre for Disease Control

The Government will provide $91.1 million over two years from 2023-24 (including $0.2 million in capital) to commence the establishment of the Australian Centre for Disease Control.

Budget Paper No 2 p 131
Budget Overview p 27
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

Therapeutic Goods Administration - public good activities

The Government will provide $61.0 million over 4 years from 2023-24 for the Therapeutic Goods Administration's delivery of public good activities. This measure will be offset by redirecting funding from the 2023-24 Budget measure titled Reinvesting in Health and Aged Care Programs.

Budget Paper No 2 p 153
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

Reducing Harm Caused by Alcohol and Other Drugs in Australia

The Government will provide $33.6 million over two years from 2023-24 to improve health outcomes through extending existing alcohol and drug programs in the community. Funding includes:

• $17.3 million over two years from 2023-24 for the Drug and Alcohol Treatment Services Maintenance program, which provides financial support to the social and community services sector

Budget Paper No 2 p 144
Budget Overview p 27
Women's Budget Statement p 70
Empowering Aboriginal and Torres Strait Islander people Fact Sheet
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements
Media Release

Preventive Health Reform

The Government will provide $53.4 million over 5 years from 2022-23 (and $0.4 million ongoing) for preventive and other health initiatives. Funding includes:

• $26.4 million over 4 years from 2023-24 to extend support for research and data collection activities that support women and girls' health outcomes
• $10.9 million over two years from 2023-24 to continue support for Men's Sheds and existing national men's health research and data collection initiatives, in line with the National Men's Health Strategy 2020-2030

Budget Paper No 2 p 143
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

National Clinical Quality Registry Program

The Government will provide $40.0 million over 4 years from 2023-24 to establish the National Clinical Quality Registry Program for tracking the safety and performance of treatments and devices, thereby improving performance reporting for clinicians and hospitals. This measure will be offset by redirecting funding from the 2023-24 Budget measure titled Reinvesting in Health and Aged Care Programs.

Budget Paper No 2 p 140
Health and Aged Care Budget Related Paper
Health and Aged Care Additional Estimates Statements

Personal Income Tax - increasing the Medicare levy low-income thresholds

The Government will increase the Medicare levy low-income thresholds for singles, families and seniors and pensioners from 1 July 2022. The increase in thresholds provides cost-of-living relief by taking account of recent CPI outcomes so that low-income individuals continue to be exempt from paying the Medicare levy. The threshold for singles will be increased from $23,365 to $24,276. The family threshold will be increased from $39,402 to $40,939. For single seniors and pensioners, the threshold will be increased from $36,925 to $38,365. The family threshold for seniors and pensioners will be increased from $51,401 to $53,406. For each dependent child or student, the family income thresholds will increase by a further $3,760 instead of the previous amount of $3,619.

Budget Speech p 7
Budget Paper No 2 p 22
Budget Overview p 14

Personal Income Tax - exempting lump sum payments in arrears from the Medicare levy

The Government will exempt eligible lump sum payments in arrears from the Medicare levy from 1 July 2024. This measure will ensure low-income taxpayers do not pay higher amounts of the Medicare levy as a result of receiving an eligible lump sum payment, for example as compensation for underpaid wages.

Budget Speech p 7
Budget Paper No 2 p 22
Budget Overview p 14