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Federal Budget 2012-13: Health initiatives & expenditure

Aged care support, NDIS, dental, Health and Hospital Fund (HHF) projects, PCEHR and PHIAC


Federal Budget 2012-13: Health initiativesAs in recent years, Health funding forms a large component of the Federal Budget 2012-13. This year, around $800 million of new money has been allocated to dental and aged care and some 2.6 billion aged care dollars have been redirected to meet the aged care reform agenda.

The following is a summary of the major initiatives on which health spending will be focused:

Aged care reform: $3.7 billion over 5 years

Focused on supporting people to stay in their own homes and enhancing aged care facilities for those who require residential care, this funding will provide:

  • $1.2 billion to address workforce pressures in aged care
  • $955.4 million to assist older Australians in need of care to stay at home
  • $660.3 million to support residential care facilities and to give residents greater choice of extra services and amenities
  • $256.4 million to support continued reform in the aged care
  • $192.0 million to improve the skills and knowledge of aged care providers
  • $102.2 million to administer home and community care services.

National Disability Insurance Scheme (NDIS): $1.0 billion over 4 years for stage one

The first stage of the NDIS will occur in up to four launch locations. Funding will include:

  • $240.3 million to build and operate the IT system required to collect and analyse data to monitor client outcomes and measure the performance of the new arrangements
  • $154.8 million to employ Local Area Coordinators to provide a more individually focused approach to delivering assistance to people with a disability
  • $122.6 million to prepare the disability sector for the new way of delivering disability services with a focus on launch locations.

Dental health: $515.3 million over 4 years

This funding, which includes oral health promotion activities aims to cut waiting lists, build the dental health workforce and provide improve facilities in rural and remote areas, includes:

  • $345.9 million to alleviate pressure on public dental waiting lists
  • $158.6 million to increase the capacity of the dental workforce
  • $10.5 million to deliver national oral health promotion activities in consultation with key dental health organisations.

Health and Hospitals Fund (HHF): $475.0 million over 6 years (76 projects)

The 76 projects funded includes projects such as hospital and community health centre development, multi-purpose services, dental facilities and training and accommodation for health professionals in rural, regional and remote locations across the country. Specific project funding includes:

  • $60.3 million for the Lismore Base Hospital redevelopment
  • $35 million for a regional Queensland e-health project
  • $15.3 million for the Mildura Community Health Services redevelopment.

Other cities to receive funding under the program for hospital upgrades include Broken Hill, Bundaberg, Griffith, Hillston, Kempsey, Peak Hill and Warracknabeal.

Personally Controlled Electronic Health Record (PCEHR): $233.7 million over 3 years

This measure will build on the Government's previous eHealth investments and will provide:

  • $161.6 million to operate the PCEHR system, including registration and customer support, adoption support and benefits monitoring and evaluation
  • $67.4 million as the Commonwealth’s share of joint funding with the states and territories for the National E-Health Transition Authority work program
  • $4.6 million to maintain safeguards for privacy-related aspects of the PCEHR system

Federal Budget eHealth Infographic

See all the changes in eHealth funding flows.  Federal Budget eHealth infographics



Private Health Insurance Administration Council (PHIAC): $2.3 million over four years

This will aid the establishment of the Private Health Insurance Premiums and Competition Unit (PACU), which will improve the advice provided to the Government on private health insurance industry pricing, industry cost drivers and insurance premiums. It will also enhance the capacity of PHIAC to encourage competition within the private health insurance industry for the benefit of consumers.

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