The Federal Budget for 2025-26 is a mixed bag for rural, regional and remote Australia in terms of funding for healthcare. While certain aspects of the budget benefit rural populations, there is a lack of a targeted strategy to address the unique health challenges these communities face.
The National Rural Health Alliance (NRHA) acknowledges the contribution of rural populations to Australia's economy in many areas including exports, tourism and agriculture. We remain hopeful that rural Australia will not be overlooked and urge all parties to consider the needs of these communities and their major contribution to Australia's economic wellbeing in the upcoming Federal election.
"We are encouraged to see some of the Federal Government's pre-election healthcare promises reflected in the 2025-26 Budget," said NRHA Chief Executive Susi Tegen. "We welcome the $8.5 billion investment to strengthen Medicare, which includes funding for an additional 18 million bulk-billed GP visits per year, 400 nursing 400 scholarships, and expanded GP training opportunities. However, the benefits are mostly for city-based and corporate practices that have higher throughput. Not all rural practices are able to bulk bill every patient due to the depth, breadth and complexity of services provided and the higher cost-of-service delivery.
"We call on the government to commit to ongoing Medicare reform, flexibility in funding and policy for thin and failing markets. This will ensure all rural healthcare providers including general practice, pharmacy and allied health services are able to sustain their multidisciplinary practices to meet population health need."
Ms Tegen also highlighted the $689 million pledge to reduce the maximum cost of many medicines listed on the PBS from $31.60 to $25. "This is good news for rural, regional and remote populations who are already facing financial pressures," she said.
There are also some positive measures to help Close the Gap in Indigenous health by increasing the availability of culturally safe and qualified mental health supports and building the First Nation's health and medical workforce. We welcome the availability of more university medical places focused on primary health care, and the previously announced 100 Commonwealth Supported Places from 2026 increasing to 150 per year by 2028.
With a large increase in health spending overall in this Budget, we remain concerned that rural and remote Australia will not receive an equitable share, despite making up 30% of the Australian population.
The NRHA remains disappointed by the lack of dedicated rural funding and of a comprehensive National Rural Health Strategy. Such a strategy would coordinate Commonwealth, State, and Territory investment in health, disability and aged care service delivery for rural Australia. Additionally, NRHA continues to call for the establishment of a National Rural Health Fund to support block and infrastructure funding which includes but is not limited to health facilities, housing and childcare, tailored to rural clinician and health student needs.
Rural, regional and remote Australia already has worse health outcomes and die up to 13.6 years earlier than those in urban areas. Almost 18,500 Australians still lack access to essential primary healthcare services within an hour's drive from their homes. Despite these stark disparities, the annual healthcare underspend in rural Australia remains $6.55 billion.
"With the Federal election on the horizon, it is not too late to prioritise rural health. "We owe it to the 7.3 million people who live and work in those communities," said Ms Tegen. "We call on all political parties to commit to delivering specific health packages for our rural communities as part of their election campaigns. Rural Australians are integral to the nation's socio-economic health and wellbeing. Without them, the rest of the nation's economic health hangs in the balance.
About us:
The National Rural Health Alliance (the Alliance) comprises 53 national organisations committed to improving the health and wellbeing of the over 7 million people in rural and remote Australia. Our diverse membership includes representation from health professional organisations, health service providers, health educators, the Aboriginal and Torres Strait Islander health sector and students.
