By Zac de Silva
Copyright thewest
Battlelines are being drawn in a fight between states and the federal government over who should pay for health and disability services.
In a blistering statement, state and territory health ministers claim Commonwealth funding is falling tens of billions of dollars short of what is needed.
They’ve warned the supposed lack of spending could result in Australians missing out on crucial hospital services.
The stoush stems back to a deal struck in late 2023, which requires the Commonwealth to boost its support for public hospitals by billions of dollars.
Federal Health Minister Mark Butler promised to cover 42.5 per cent of the running costs by 2030 and 45 per cent by 2035, with the states to pick up the rest.
He’s now negotiating the next funding agreement with the states, which is tied to other reforms aimed at better supporting Australians with a disability and reducing pressure on the NDIS.
But after meeting on Monday, state and territory health ministers say they’re concerned the Commonwealth doesn’t intend to honour its funding promises.
“Under the arrangement now proposed by the Commonwealth, the actual share of Commonwealth funding will be closer to 35 per cent, falling tens of billions of dollars short of what is needed,” they said in a joint statement.
The federal government rejected the claims, saying it’s “committed to making a fair contribution under the hospital funding agreement”.
“The Commonwealth’s most recent offer to states included an additional $20 billion over five years,” a government spokesperson said.
They said this was a $7 billion increase on the previous offer.
Mr Butler is hoping the new funding agreement will be finalised by the end of the year.