Australian Healthcare

Research evidence excerpt

Australian Healthcare

Flashnote

12 May 2026

Healthcare

Australian Healthcare Australia

Federal Budget 2026-27: Key areas

Christine Dr. Bryan

Trinh Tan

What's new

Modernising Private Health:

• The Budget has legislated the removal of higher Private Health Insurance

(PHI) rebate for those aged >65 years from 1-April-2027 to simplify

and more equally distribute the PHI rebate, as well as help to improve

intergenerational equity. The Government expects to achieve ~$3.0b of

savings over 4 years, which will be invested into the aged care sector to

deliver more residential aged care beds and improve affordability/access to

home care supports.

Aged Care:

• The Government is investing $1.7b to incentivise construction of up to 5k

aged care beds a year and protect equity of access. This includes A$606.5m

over 4 years (and an additional A$3.0b between 2030/31-2035/36) to

respond to the Residential Aged Care Accommodation Pricing Review,

such as: 1) $30 per supported resident per day upon commencement of

newly constructed homes, payable for up to 25 years; 2) $15 per supported

resident per day upon commencement of significantly expanded homes,

payable for up to 15 years; 3) $224.3m (and an additional A$317.5m

between 2030/31-2035/36) for dementia care supports (e.g., up to 20

additional Specialist Dementia Care units, increase in Hospital to Aged Care

Dementia Support program from 11 to 20 locations nationally); 4) $33.8m

to allow greater flexibility in room pricing.

• The Government has also provisioned $1.1b for future increases to the

Accommodation Supplement and an additional payment for homes with

>60% supported resident ratios (subject to finalising implementation

details).

• In addition, A$1.4b will be invested to Support at Home package to: 1)