Insight,

Australian Federal Budget October 2022-23: Health & aged care

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This year’s Budget has a strong focus on health and aged care. In addition to the Government’s continued response to the Royal Commission into Aged Care Quality and Safety and the ongoing COVID-19 Pandemic, additional measures and significant funding has been committed to Medicare related initiatives, First Nations health and mental health services and care for those in rural communities.

Aged care

Further responses to the "aged care crisis"

With aged care being a key priority for the Government, $2.5 billion over 4 years from 2022–23 will go towards reform of the aged care system, including the following funding measures:

  • $2.5 billion over 4 years from 2022–23 to support the requirement for all aged care facilities to have a registered nurse onsite 24 hours per day, 7 days a week from 1 July 2023 and the increased requirement of 215 care minutes per resident per day from 1 October 2024.
  • $23.2 million over 4 years from 2022–23 towards aged care infrastructure and services that provide particular support to First Nations people and those from diverse communities and regional areas.
  • $9.9 million over two years from 2022–23 to establish the Aged Care Complaints Commissioner within the Aged Care Quality and Safety Commission from December 2022.

Royal Commission response

The Government has committed $540.3 million over 4 years from 2022–23 in a continued response to the Royal Commission into Aged Care Quality and Safety. In particular, key funding includes:

  • $312.6 million over 4 years from 2022–23 towards crucial information and communication technologies maintenance and developments, designed to support aged care reporting and reform.
  • $68.5 million over 4 years from 2022–23 towards the Regional Stewardship of the Aged Care outreach model which aims to support aged care reform in regional areas.
  • $53.5 million to extend the Disability Support for Older Australians Program to 31 December 2023.
  • $38.7 million over 4 years from 2022–23 to establish the Inspector-General of Aged Care and the Office of the Inspector-General of Aged Care as a Statutory Agency
  • $23.1 million in 2022–23 to implement the Support at Home Program from July 2024. Existing grant arrangements for the Commonwealth Home Support Programme will also be extended to 30 June 2024 to reflect the new start date of 1 July 2024 for the Support at Home Program.

Medicare

The Government has committed $9.5 million over 4 years from 2022–23 to amend the Medicare Benefits Schedule (MBS) and improve access to health care. Measures include:

  • $2.3 million over 3 years from 2023–24 to introduce a new somatic gene panel test in the initial diagnosis of patients with morphological features of glioma, glioneuronal tumours or glioblastoma
  • $3.6 million over 3 years from 2023–24 to increase rebates for 6 nuclear medicine items.
  • $1.9 million over 4 years from 2022–23 to cover a whole-body magnetic resonance imaging scan to assist with the detection of cancer in some cases.
  • $0.1 million over 3 years from 2023–24 to amend patient eligibility for the treatment of painful bony metastases associated with cancer.

Covid-19 response measures

Aged care

An additional $845.4 million in 2022–23 will be provided to assist the aged care sector deal with the ongoing impacts of Covid-19.

  • $810.2 million in funding will go towards costs incurred by aged care providers during Covid-19 outbreaks (until 31 December 2022)
  • $34.9 million has been committed to continuing current testing arrangements in aged care facilities until 31 December 2022.

Hospitals & emergency response 

$808.2 million of funding in 2022–23 will go towards extending the COVID-19 response until 31 December 2022. This includes:

  • $759.9 million to extend the National Partnership on COVID-19 Response.
  • $48.3 million in 2022–23 to extend the GP-led Respiratory Clinics program.

Personal Protective Equipment (PPE) and Rapid Antigen Tests (RATs)

$410.3 million of funding in 2022–23 has been committed to the purchase and distribution of PPE and RATS to manage Covid-19 outbreaks and the spread of Covid-19 in high-risk settings.

Vaccines & treatments

The Government will provide $355.8 million in 2022–23 towards the distribution and administering of COVID-19 vaccines across Australia.

Medicare & medicines

The Government has committed $162.4 million in 2022–23 for the inclusion of COVID-19 related items in the MBS, including for polymerase chain reaction (PCR) testing, telehealth consultations to determine COVID-positive patients’ suitability for oral antivirals, additional support for GPs and medical Practitioners to manage COVID-positive patients, and continued access to Medicare rebates for telehealth appointments for patients with COVID-19.

Mental health

  • The Government has committed $24.3 million over 4 years from 2022–23 to improve access to mental health services.
  • In addition, $13.0 million over 4 years from 2022–23 will go towards mental health support for communities impacted by flooding in New South Wales.
  • The Government will also provide $1.5 million over 2 years from 2022–23 to support the implementation of the Seafood Industry Australia’s Stay Afloat Program, which provides hubs in fishing communities to provide access to mental health support for commercial fishers and seafood workers.

Care in rural & regional Australia

The Government is committed to improving the access and quality of health care in rural and regional Australia. To achieve this, it plans to implement the following measures:

  • $61.8 million will be provided over 6 years from 2022–23 to fund local health projects in rural and regional locations to improve care and reduce pressure on hospital emergency departments. This funding includes:
    • $28.7 million over 6 years from 2022–23 towards the GP Access After Hours program in the Hunter Region of New South Wales;
    • $20.6 million over 4 years from 2022–23 to establish a new cancer support pilot program at the W.P. Holman Clinic, and to assist with construction of a new hospice in the Launceston General Hospital Precinct;
    • $4.4 million over two years from 2022–23 to reopen the Minor Accident and Illness Centre at the Morayfield Health Hub in Queensland;
    • 0 million over 5 years from 2023–24 to develop a medical research centre at the Launceston General Hospital;
    • $3.0 million over 3 years from 2022–23 to improve end-of-life care at Anam Cara House palliative care facility in Geelong, Victoria; and
    • $1.1 million over 4 years from 2022–23 to reopen the Kaden Centre in the Hunter Region of NSW.
  • $47.7 million will be provided over 4 years from 2022–23 towards MBS items allowing for 50 per cent loading for bulk-billed telehealth psychiatry consultations in eligible areas across regional and rural Australia.
  • The Government has also committed $143.3 million over 4 years to support access to primary healthcare services and implement training, workforce incentives and care trials in rural and regional area. This funding includes:
    • $74.1 million over 4 years from 2022–23 to introduce tiered financial incentive payments for doctors in rural areas;
    • $24.7 million over 4 years from 2022–23 to fund an additional 3 rounds of the Innovative Models of Care Program which trials new primary care models;
    • $8.4 million over 3 years from 2023–24 to provide 15 additional hospital-based training posts per year for rural generalists and rural general practitioners in regional and remote Australia; and
    • $5.6 million in 2025–26 to provide additional rural primary care training rotations for junior doctors through the John Flynn Prevocational Doctor Program.

First Nations health

$314.8 million has been committed over 5 years from 2022–23 towards closing the gap for First Nations peoples’ health and wellbeing outcomes. Key funding includes:

  • $164.3 million over 4 years from 2022–23 to invest in modern health clinics in areas of large and growing First Nations populations.
  • $54.3 million over 5 years from 2022–23 to deliver up to 500 First Nations Certificate III and IV traineeships in Aboriginal and Torres Strait Islander Primary Health Care.
  • $45.0 million over 4 years from 2022–23 to invest in 30 new and upgraded dialysis units to improve the health of First Nations peoples with end-stage kidney disease.
  • $10.1 million in 2022–23 for CareFlight to increase its capacity for aeromedical services in the Northern Territory.
  • $2.2 million over 3 years from 2022–23 to support First Nations community participation in AFL competitions in the Northern Territory.
  • The Government is also providing $229.7 million over two years from 2022–23 to invest in general practices through the Strengthening Medicare General Practice (GP) Grants Program. These grants support general practices, including Aboriginal Community Controlled Health Services and other GP-led practices in investing in training, equipment and capital works to achieve or maintain accreditation under the National General Practice Accreditation Scheme.

Pharmaceutical Benefits Scheme

The Government will provide $1.4 billion over 4 years from 2022–23 for new and amended listings on the Pharmaceutical Benefits Scheme (PBS), the Repatriation Pharmaceutical Benefits Scheme, the Life Saving Drugs Program, the National Diabetes Services Scheme and the Stoma Appliance Scheme.

There have been new and amended PBS listings since the 2022–23 March Budget, including for the treatment of adults with COVID-19, adults with COVID-19 who are at increased risk of hospitalisation or death, Waldenström macroglobulinemia, relapsed multiple sclerosis, spinal muscular atrophy, infantile onset Pompe disease and late onset Pompe disease, advanced or metastatic gastro-oesophageal cancers and metastatic or locally advanced cutaneous squamous cell carcinoma.

The Government will also provide $787.1 million over 4 years from 2022–23 (and $233.4 million per year ongoing) to decrease the general patient co-payment for treatments on the Pharmaceutical Benefits Scheme from $42.50 to $30.00 on 1 January 2023.

Other noteable measures

Monkey Pox

The Government will provide $73.9 million in 2022–23 to purchase additional vaccines and treatments for the National Medical Stockpile in response to the monkeypox outbreak.

Surf Life Savings Clubs

$5.0 million over 3 years from 2022–23 will go towards Surf Life Saving Australia’s Beach Safety Equipment Fund, which will support the purchase of surf rescue and medical supplies.

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