More funding for hospitals and schools

Supporting the States and Territories to provide services for all Australians

Supporting the States and Territories

In 2016-17, the Government will provide record levels of financial assistance to State Governments to deliver the services Australians need.

The Commonwealth will provide the States with more than $61.3 billion in general revenue assistance (primarily GST) for States to spend as they wish, an increase of 5 per cent since 2015-16. This is in addition to the $55.3 billion that the Commonwealth will provide the States to fund particular projects and for the delivery of specific outcomes, an increase of 11 per cent since 2015-16.

The Commonwealth funds around 47 per cent of State spending. States also have access to their own revenue sources to fund State responsibilities.

The Government will provide the States with an extra $4.1 billion for hospitals and schools, to support services and reform. This brings the Commonwealth’s assistance for hospitals and schools to more than $34 billion per annum over the forward estimates.

Hospitals

At the April 2016 COAG meeting, the Commonwealth and the States signed a three year Heads of Agreement for public hospitals.

The Government will provide an estimated additional $2.9 billion between 2017-18 and 2019-20 to support public hospitals, with links to reforms to reduce avoidable hospital admissions, improve patient safety and boost the quality of services.

Schools

The Government will also provide an additional $1.2 billion between 2018 and 2020 for schools, contingent upon reform efforts by the States and the non-government schools sector to improve education outcomes.

These funding arrangements for hospitals and schools provide an opportunity to develop longer-term funding arrangements and further reforms that focus on quality and sustainability into the future.

Living within our means

Commonwealth payments to the States are continuing to grow at a time when State budgets are in a strong position.

However, all levels of government must live within their means and ensure services are based on what taxpayers can afford and the economy can support.