Australian Healthcare "Budget 2026/27 - Limited implications for health ..."

Research evidence excerpt

Australian Healthcare "Budget 2026/27 - Limited implications for health ..."

Global Research

12 May 2026ab

Australian Healthcare Equities

AustraliaBudget 2026/27 - Limited implications for health

stocks Healthcare

David Low

Analyst

david.low@ubs.com

This year’s Budget includes few measures which will affect the health service providers - +61-2-9324 2843

Sonic Healthcare and Ramsay Health Care - in our view. Aged care is the key beneficiary,

James Meares

with incentives aimed at increasing places for concessional residents and funding set

aside to boost the accommodation supplement. Refer to the 2026/2027 Budget Paper 2 james.meares@ubs.com

here. +61-29-324 3575

Grace Allen

Ramsay Health Care - Private health rebate reform a modest headwind

Associate Analyst

The removal of the age-based private health insurance rebate was confirmed, with the grace-za.allen@ubs.com

Government projecting savings of nearly A$1b per annum by FY30. We see this as a +61-2-9324 2000

modest headwind to private hospital attendance for Ramsay, with any impact likely to

build gradually.

Sonic Healthcare – Small changes to pathology and imaging funding

Savings of A$146m over two years are expected from reducing duplicative diagnostic

imaging and pathology tests via “sharing by default” under My Health Record. For Sonic

this should be partly offset by a A$31m extension of the bowel cancer screening

program. Overall, we expect a negligible impact in the context of nearly A$10b of

annual Medicare spending on diagnostic services.

Sonic Healthcare – GP bulk billing still expected to lift

The Government will fund six new bulk-billed clinics in NSW, adding around 155k

annual visits and providing a minor boost to volumes. The Government has reiterated its