A sustainable health system

Taking strong action on tobacco

On 30 April 2010, tobacco excise was increased by 25 per cent. This will provide clear incentives for current smokers to quit.

Higher tobacco prices will also help young people avoid smoking in the first place, as they are more responsive to price rises.

Increasing excise will provide $5 billion in revenue over five years that will be directly invested in better health and better hospitals for all Australians.

This measure, combined with plain packaging of tobacco products, will see the world's most stringent anti‑smoking regime.

Better value medicines

The Government has negotiated price reductions on medicines and price disclosure arrangements that will mean taxpayers benefit from savings of $1.9 billion over five years.

Improved services and better value for money will also be delivered through the Fifth Community Pharmacy Agreement (5th CPA).

This Agreement begins on 1 July 2010, and provides for further net savings of $0.6 billion over five years.

Fully funded health reform

Through strong action on tobacco, and prudent savings to ensure value for money, the Government has delivered a more sustainable health system and has fully funded health reform.

The Government is delivering on its fiscal strategy, whilst funding improvements in health and hospitals in a sustainable way and achieving value for money from every dollar invested in health.