National Cabinet has announced a major funding agreement for Australia’s public hospital system, alongside additional reforms aimed at stabilising long-term growth in the National Disability Insurance Scheme (NDIS).
Under the new National Health Reform Agreement Addendum, Commonwealth funding for public hospitals will total $219.6 billion between 2026–27 and 2030–31, including a $25 billion uplift over five years. The funding will continue to flow under the activity-based model, with allocations tied to population, service demand and case complexity. Governments say the investment is designed to ease pressure on emergency departments and respond to population growth, workforce shortages and rising care complexity.
Alongside hospital funding, National Cabinet agreed to measures intended to moderate NDIS expenditure growth to 5–6 per cent annually. State and territory contribution increases will be capped from mid-2028, and a new $2 billion “Thriving Kids” program will introduce foundational supports for children with low to moderate needs from October 2026.
For NDIS providers, the reforms signal continued focus on cost control, early intervention pathways and clearer funding boundaries. As implementation timelines progress, providers will need to monitor eligibility changes, plan transitions carefully, and maintain strong documentation and compliance practices.