Overview

• State and territory leaders said the latest proposal would leave the Commonwealth’s hospital share near 35%, short of the in‑principle targets of 42.5% by 2030 and 45% by 2035.
• Premiers warned the funding gap would worsen elective surgery backlogs, emergency department waits and ambulance ramping.
• A federal spokesperson said negotiations remain open and the newest offer adds $20 billion over five years, which is $7 billion more than the prior proposal.
• States continue to push for removal of the 6.5% annual growth cap on Commonwealth hospital payments, arguing it will not keep pace with costs.
• The hospital deal is tied to NDIS changes, with the Commonwealth designing foundational supports and planning a ‘Thriving Kids’ program from 2027 for some children with mild autism.