Skip to content

Programme 1.5: Assistance to the states for healthcare services

Programme objective

The Government provides financial support to the states and territories to be spent in the delivery of healthcare services.

This programme also has links to the Health portfolio.

In 2013-14, National Health Reform funding is set to the amount that would have been previously payable through the former National Healthcare Specific Purpose Payment (SPP).

National Health Reform funding is paid into a National Health Funding Pool. The Administrator of the National Health Funding Pool, jointly established by the Commonwealth and the states, is responsible for calculating the Commonwealth funding amount for public hospitals and advising the Treasurer of this amount; and making payments from the National Health Funding Pool.

Programme deliverables

The programme deliverable is:

  • Payments to the states and territories are made according to the payment arrangements specified in the Intergovernmental Agreement and the National Health Reform Agreement.

Key performance indicators

The key performance indicators are:

  • the Commonwealth Treasury will transfer to the National Health Funding Pool the amount of Commonwealth funding to which each state and territory (including Local Hospital Networks in each jurisdiction) is entitled, and will make the payments on the dates specified in the Intergovernmental Agreement on Federal Financial Relations;
  • the Commonwealth Treasury will provide advice to the states and territories on the components of each payment prior to each payment being made; and
  • the states and territories are required to spend National Health Reform funding in the healthcare sector. Each state and territory Treasurer will provide a report to the Council on Federal Financial Relations demonstrating expenditure of National Health Reform funding within the sector is in accordance with the Intergovernmental Agreement on Federal Financial Relations and the National Health Reform Agreement.

Analysis of performance

The Treasury facilitated the Government’s 2013-14 financial support for the states and territories in the delivery of healthcare services.

  • Total expenses for National Health Reform funding were $13.8 billion. Payments were paid into the National Health Funding Pool in accordance with each state and territory’s monthly and annual entitlements, as per the Administrator’s advice to the Treasurer.
  • Payments were made in a timely manner in accordance with the payment arrangements specified in the Intergovernmental Agreement.
  • Advice was provided to the states and territories prior to each payment being made.

To demonstrate that the National Health Reform funding has been spent within the relevant sector, each state and territory Treasurer will provide a report to the Council within six months of 30 June 2014, disclosing relevant information in accordance with the Intergovernmental Agreement.