Australian Federal Budget 2026-27: implications for Australian healthcare stocks

Research evidence excerpt

Australian Federal Budget 2026-27: implications for Australian healthcare stocks

en provided.

• The Government is provisioning $1.1b for future spending to increase and restructure the

Accommodation Supplement and introduce an additional payment for homes with more than 60%

of supported residents. However, no details were provided on the amount of the increase to the

Accommodation Supplement.

• The Government is planning to spend $33.8m over four years from 2026-27 to allow greater flexibility

in how aged care room prices are set.

• The Government is providing $389.8m to accelerate the release of Support at Home packages and

make the program fairer and more affordable. This includes improvements to assessments, hardship

applications and the end-of-life pathway.

• The Government is committing $1.0b to fully subsidise and remove co-contributions for personal care

services such as showering through the Support at Home program. This funding had already been

pre-announced by the Health Minister.

Key points for diagnostic companies (SHL, HLS, ACL, IDX):

• The budget provides an additional $25.3m in targeted funding to lift bulk billing rates in the Central

Coast, Newcastle, Lake Macquarie and Hunter regions.

• The Government is planning to save $146.3m over two years from 2026-27 through reduced Medicare

Benefits Schedule expenditure as a result of avoided duplicative diagnostic imaging and pathology

tests. We estimate this would equate to an annual reduction of 0.74% for combined imaging and

pathology benefits paid.

Priced as of prior trading day's market close, EST (unless otherwise noted). All values in AUD unless otherwise noted

Disseminated: May 12, 2026 08:45EDT; Produced: May 12, 2026 08:45EDT

For Required Non-U.S. Analyst and Conflicts Disclosures, see page 3