The government’s health budget tinkers around the edges for rural communities: NRHA

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National Rural Health Alliance (NRHA), Media Release, 13 May 2026

The National Rural Health Alliance (NRHA) welcomes the Albanese Government’s willingness to address the cost-of-living pressures on Australian household budgets, in particular by listing new medicines on the Pharmaceutical Benefits Scheme (PBS). This is particularly important for rural and remote Australians, who often experience higher burden of diseases, poorer health outcomes, and higher costs.

The NRHA also welcomes measures to support the health and wellbeing of Indigenous Australians. We are pleased to see some further investments to improve the quality of social and affordable housing through the Housing Australia Future Fund (HAFF) for Aboriginal people in remote Australia.

“The government has announced continued funding for Strengthening Medicare and has made the Urgent Care Clinics a permanent fixture of our health system. However, there is an absence of targeted investment for primary care, disability, and health workforce for rural and remote Australia,” said NRHA Chief Executive Susi Tegen.

“Rural areas also need ongoing primary care alongside urgent care. One-off access without continuity is a limited health strategy,” said Ms Tegen.

“The real test with the Budget is whether the dollars announced reach rural people, First Nations communities and primary care in thin markets where healthcare access is hardest.”

Persistent gaps in access to services and workforce remain unaddressed in this Budget for 7.4 million Australians living outside major cities. This is despite findings that rural communities receive less health funding from Australian and State/Territory governments than metropolitan Australia, and the annual deficit is currently $8.35 billion.

“There is also no reference to how the government will implement the National Health Reform Agreement (NHRA) Schedule F: Better Health Equity for Rural and Remote Communities, which will take effect 1 July 2026. Schedule F is a win for rural communities and requires funding for implementation,” said Ms Tegen.

“The NRHA welcomes the Budget’s investments in aged care across Australia. However, it is disappointing that there are no targeted aged care programs for rural areas, which are needed to address the pressing infrastructure and viability issues that rural providers are experiencing,” Ms Tegen added.

On the National Disability Insurance Scheme (NDIS) cuts, the NRHA acknowledges that fiscal sustainability matters. However, we hold concerns about the transition process for people coming off NDIS, particularly those in rural Australia who already fall through the cracks in finding necessary supports.  

“We see benefits from the government’s Thriving Kids package. But State governments must be held accountable for ensuring that funding is equitably distributed to rural people. We look forward to working with the government on the NDIS, Thriving Kids program to ensure that rural people do not miss out on disability support,” said Ms Tegen. 

Likewise, we look forward to rural Australia receiving its fair share of any increases to the Medical Research Future Fund (MRFF) investments.

“With the current economic environment and because of the war in the Middle East, the government has delivered a tinkering budget. However, this is the time to invest and support rural communities, where our economic wellbeing and food production come from. These are the communities that enable us to be a resilient nation, and it is our duty to back them,” Ms Tegen said.

Related stories: Federal Budget 2026 – 27

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