Overview
- The Council for the Australian Federation said the latest proposal would deliver a Commonwealth share closer to 35% of hospital costs, short of the 42.5% by 2030 and 45% by 2035 outlined in the in‑principle 2023 agreement.
- The federal government says it has put an extra $20 billion on the table over five years, a $7 billion increase on its previous offer, and hopes to finalise agreements by the end of the year.
- Talks are entangled with NDIS changes after the August announcement of the Thriving Kids program to shift some children with mild or moderate autism off the NDIS from 2027, which states say they were not consulted on.
- Premiers warn the gap risks worsening hospital performance, with Tasmania estimating a $673 million five‑year hit equivalent to 128,000 elective surgeries and 1.2 million emergency department presentations.
- Key sticking points include the 6.5% growth cap on Commonwealth hospital payments and whether states are better off overall, with negotiations continuing under a one‑year extension that added $3.71 billion this financial year.