The easy stuff has been done. Now it’s about waiting for an election result before pushing for further investments in critical initiatives.
Last night’s federal budget was generally a win for the digital health sector but critical initiatives “remain unaddressed”, says the Australasian Institute for Digital Health.
The budget contained commitments of $46 million over four years to continue digital mental health services and $228.7 million in 2025-26 to continue the modernisation of the My Health Record.
The Department of Health and Aged Care had already secured $429 million over two years from the 2023 budget for the MHR project, but that funding would have expired in June this year without the extra injection of cash.
There was also $15.6 million over two years from 2025-26 to continue MHR initiatives under the Health Delivery Transformation Program to support essential work, and $5.7 million in 2025-26 to improve electronic prescribing infrastructure and services Australia-wide.
The AIDH described all of these announcements as “a positive step forward”.
“However, it’s important to recognise that significant gaps remain,” said AIDH’s CEO Anja Nikolic.
“Key areas such as digital health literacy and workforce training have not been adequately addressed.
“Robust and targeted action in these areas is essential for minimising inefficiencies that augment the effects of the health workforce shortage.”
In their budget response the AIDH indicated they would “have more to say” about “digital health infrastructure, workforce training, and broader digital health initiatives essential for the future of digital health in Australia” once the election date has been announced.
DoHAC also received $53.2 million to continue implementation of the single assessment system and the staged implementation of the new Aged Care Act.
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A further $37.8 million will also fund the Aged Care Quality and Safety Commission to support the Act’s digital implementation.
The National Disability Insurance Agency’s fraud-detecting IT systems also received $151 million over four years, building on the $110 million over two years announced in last year’s mid-year economic and fiscal outlook.
The complete list of key health IT and digital projects to receive funding included:
- $228.7 million in 2025–26 to continue modernising MHR and support the digital health reform agenda;
- $151 million over four years from 2025–26 to continue enhancements to the NDIA’s fraud detecting IT systems;
- $53.2 million in 2025–26 to continue implementation of the Single Assessment System and support the staged digital implementation of the Aged Care Act 2024 to ensure continuity of aged care assessment services;
- $37.8 million in 2025–26 for the Aged Care Quality and Safety Commission to support the staged digital implementation of the Aged Care Act 2024;
- $17.1 million in 2025–26 to continue to invest in the NDIA’s ability to detect and respond to fraud and non‑compliant payments;
- $5.7 million in 2025–26 to extend funding to ensure sustainability of Australia’s electronic [pharmaceutical] prescribing infrastructure.
