THE 2025-26 Federal Budget is a mixed bag for rural, regional and remote Australia in terms of funding for healthcare, says the National Rural Health Alliance.

While certain aspects of the budget benefit rural populations, there is a lack of a targeted strategy to address the unique health challenges these communities face, the organisation says. NRHA chief executive, Susi Tegen, is encouraged to see some of the Federal Government’s pre-election healthcare promises reflected in the budget, delivered last night.

“We welcome the $8.5 billion investment to strengthen Medicare, which includes funding for an additional 18 million bulk-billed GP visits per year, 400 nursing scholarships, and expanded GP training opportunities,” Ms Tegen said.

“However, the benefits are mostly for city-based and corporate practices that have higher throughput.

“Not all rural practices are able to bulk bill every patient due to the depth, breadth and complexity of services provided and the higher cost-of-service delivery.

“We call on the government to commit to ongoing Medicare reform, flexibility in funding and policy for thin and failing markets. This will ensure all rural healthcare providers including general practice, pharmacy and allied health services are able to sustain their multidisciplinary practices to meet population health need,” she said.

NRHA chief executive, Susi Tegen, is encouraged to see some of the Federal Government’s pre-election healthcare promises reflected in the budget.

Ms Tegen also highlighted the $689 million pledge to reduce the maximum cost of many medicines listed on the PBS from $31.60 to $25.

“This is good news for rural, regional and remote populations who are already facing financial pressures,” she said.

There are also positive measures to help Close the Gap in Indigenous health by increasing the availability of culturally safe and qualified mental health supports and building the First Nations health and medical workforce.

The NRHA welcomes the availability of more university medical places focused on primary health care, and the previously announced 100 Commonwealth Supported Places from 2026 increasing to 150 per year by 2028.

With a large increase in health spending overall in this Budget, the NRHA is concerned rural and remote Australia will not receive an equitable share, despite making up 30 per cent of the Australian population.

“With the Federal election on the horizon, it is not too late to prioritise rural health,” Ms Tegen said. “We owe it to the 7.3 million people who live and work in those communities.

“We call on all political parties to commit to delivering specific health packages for our rural communities as part of their election campaigns.

“Rural Australians are integral to the nation’s socio-economic health and wellbeing. Without them, the rest of the nation’s economic health hangs in the balance,” she said.

Media Release