States demand extra $5bn for health

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State and territory leaders will urge the federal government to increase hospital funding at the first meeting of the national cabinet since the 21 May election. Health care is set to be the key issue on the agenda on Friday, with the states calling for an additional $5 billion in federal funding for public hospitals, as well as the extension of a separate arrangement for COVID-19 healthcare funding that is slated to expire in September:

The federal government has paid for half of each state’s Covid health funding – including for vaccinations, diagnosis and treatment of patients and efforts to minimise the virus’s spread – since January 2020.

The arrangement is due to end on September 30.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.