South Australia’s public hospital system is set to receive a major funding boost, with billions of additional dollars secured through a new agreement reached at National Cabinet.
The deal will deliver an extra $2 billion in federal funding for South Australia’s hospitals over the next five years, lifting the total Commonwealth contribution to $15.2 billion. It comes after sustained pressure from the states for a stronger, more sustainable funding model for public health, with South Australia playing a leading role in those negotiations.
Premier Peter Malinauskas said the agreement marked a significant win for the state’s health system and for patients who rely on it. “We are proud to have secured this landmark agreement for South Australian hospitals,” he said. “Our calls for a fairer funding deal have been heard.”
The additional federal investment builds on what the State Government describes as record spending at a local level, with more than $9 billion invested into South Australia’s health system since 2022. That funding has underpinned major infrastructure projects, workforce expansion, and plans to significantly increase hospital capacity across the state.
“The Federal Government has today committed to provide an additional $2 billion over five years to South Australia’s health system, taking the total Commonwealth contribution to $15.2 billion,” the Premier said. “This builds on the extra $9 billion our Government has invested in South Australia’s health system since being elected four years ago.”
A central focus of that investment has been expanding hospital capacity, with 600 additional hospital beds currently being built across South Australia. Alongside this, thousands of new health workers have been recruited to staff the growing system, addressing workforce pressures that have been felt nationwide.
“We’re adding 600 more hospital beds for South Australians and we’ve recruited more than 2,700 additional health workers including hundreds of extra doctors and nurses,” Malinauskas said.
Since coming to office, the Government has recruited more than 2,700 health workers above attrition, including over 1,400 nurses and more than 600 doctors. Major hospital projects have also been delivered, including the $314 million Clinical Services Building at the Queen Elizabeth Hospital, a $134 million ambulance service headquarters and Adelaide Ambulance Station, and a $74 million upgrade of Noarlunga Hospital.
Health Minister Chris Picton said the agreement reflected years of advocacy by the states and would have lasting benefits for South Australians. “We’re pleased to have secured this historic agreement from the Federal Government for billions more dollars for South Australia’s public health system,” he said.
“We’ve been leading a concerted push from the states for a fairer funding deal from the Federal Government for our hospitals and that’s now been reached.”
Picton said the additional funding would support the continued expansion of services and staffing across the system. “We will continue to advocate for South Australians on the national stage as we build a bigger health system, including an extra 600 extra hospital beds and more than 2,700 extra health workers,” he said.
The agreement locks in long-term federal support as South Australia continues to grow its hospital network, with the State Government positioning the deal as critical to maintaining access to care as demand increases.
