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National Cabinet met in Sydney today and reached a landmark agreement to deliver record funding to state and territory hospitals and secure the future of the NDIS.  

These reforms will ensure Australians can continue to access world class health care and disability supports.

It prioritises investment in our precious public health system and builds on the Commonwealth’s measures to strengthen Medicare.

Hospital funding

Today’s agreement reaffirms a shared commitment to delivering safe, high-quality health and disability services for all Australians. It is a major step forward in addressing growing pressures on our health and aged care systems and the NDIS, ensuring their sustainable delivery into the future.

As part of this deal, the Commonwealth will provide $25 billion in additional funding for public hospitals. This is three times more additional funding for public hospitals than under the last 5 year agreement. Commonwealth funding for state-run public hospitals will reach a record $219.6 billion from 2026-27 to 2030-31.

The funding includes the Commonwealth share of estimated hospital activity from 2026-27 to 2030-31 of $24.4 billion through the National Health Reform Agreement hospital base funding and over $600 million in further Commonwealth investment in the public hospital system.

The Commonwealth will continue to help states take pressure off their hospitals by delivering 137 Medicare Urgent Care Clinics, record investment to expand the bulk billing incentive for all Australians, 92 Medicare Mental Health Clinics, 1800Medicare, cheaper medicines for every Australian and delivering the best aged care for older Australians.

Disability reforms

National Cabinet has acknowledged the need for continuing reforms to secure the future of the NDIS, ensuring it is sustainable and can continue to provide life changing support to future generations of Australians with disability.

Building on this momentum, National Cabinet has agreed to additional reforms including: 

• Adjusting state and territory NDIS contribution escalation rates to be in line with actual scheme growth, capped at 8 per cent, from 1 July 2028 with a review point in 2030-31.
• Working together to target annual cost increases to 5 to 6 per cent.
• $2 billion, matched by states, to deliver Thriving Kids, the first phase of Foundational Supports, with the Commonwealth providing $1.4 billion of its contribution to support states to help their kids thrive.

The national model of Thriving Kids has been informed by the Thriving Kids Advisory Group led by Minister Butler and Professor Oberklaid OAM, and the Parliamentary Inquiry led by Dr Mike Freelander and Dr Monique Ryan.

The Commonwealth has listened to stakeholders including parents, health professionals, disability advocates, educators and states. To ensure states and territories have enough time to implement Thriving Kids the roll out will now commence on 1 October 2026, with full implementation by 1 January 2028.

Children with permanent and significant disability, including those with developmental delay and/or autism with high support needs, will continue to be eligible for the NDIS. 

From 1 October 2026, children with developmental delay and/or autism with low to moderate support needs will start to access support through Thriving Kids. Thriving Kids will be fully rolled out by 1 January 2028.

Children aged 8 and under enrolled in the NDIS prior to 1 January 2028 with developmental delay and/or autism with low to moderate support needs will be subject to the usual reassessment criteria in place prior to 1 January 2028.

The Commonwealth, states and territories will continue to finalise the national and local services to be delivered to support children and their families in each jurisdiction.

The National Health Reform Agreement Addendum is more than hospital funding. This new Addendum has key reforms embedded throughout to make Australia’s hospital and health care system more effective, efficient and equitable.

Australia has world-leading health and disability support services. The decisions taken by National Cabinet today will further strengthen our health system and secure the future of the NDIS.

This media statement has been agreed by First Ministers and serves as a record of meeting outcomes.

The Albanese and Allan Governments continue to stand with communities affected by the devastating January 2026 Victorian bushfires, announcing $160 million in additional support to help families, businesses and primary producers.

Up to $158 million is funded by both Governments under joint Commonwealth‑State Disaster Recovery Funding Arrangements (DRFA), while the Allan Government is investing an extra $2 million for schools within fire-affected areas to engage additional mental health services.

Local government areas eligible for support are Alpine Shire, Ararat Rural City, Benalla Rural City, Campaspe Shire, Colac Otway Shire, Corangamite Shire, East Gippsland Shire, Golden Plains Shire, Greater Bendigo City, Horsham Rural City, Macedon Ranges Shire, Mansfield Shire, Mildura Rural City, Mitchell Shire, Moira Shire, Mount Alexander Shire, Murrindindi Shire, Pyrenees Shire, Strathbogie Shire, Towong Shire, Wellington Shire, Wodonga City, Yarra Ranges Shire and Lake Mountain Alpine Resort.

This funding builds on the more than $210 million in already announced relief and recovery supports for bushfire-affected Victorians, including emergency relief payments, grants for primary producers, access to emergency accommodation, and support for councils.

Clean-up for homes and businesses

An additional $112 million will expand the state-coordinated Clean-up Program with Forge Solutions now appointed as lead contractor. Forge Solutions have extensive experience in disaster clean up and will prioritise engaging local contractors to support their work.

Clean-up support will be available for uninsured and underinsured residential homes and structures such as sheds or garages.

It will also be available for businesses if uninsured or underinsured structures have been damaged or destroyed by the January 2026 Victorian bushfires.

Uninsured and underinsured community assets – like sporting facilities and community halls – will also be able to access the clean-up program if clean-up is not covered by other programs.

Registrations for the Clean-up Program are now open. Call the Emergency Recovery Hotline on 1800 560 760 or visit Emergency Recovery Victoria website: vic.gov.au/clean-support-january-2026-bushfires.

Emergency Recovery Support Program

Recovery has a long tail. To help people get the support they need throughout their recovery journey, an additional $20 million will expand the Emergency Recovery Support Program.

The program helps people affected by the bushfires navigate and access the government support programs and services they need. It can also help with things like insurance and legal questions, finding local services and connecting people to essential health and wellbeing support.

Dedicated recovery support workers will also be available for people who need extra help navigating their recovery.

The Emergency Recovery Support Program is available by calling the Emergency Recovery Hotline on 1800 560 760.

Temporary accommodation

Further funding is being provided to ensure immediate accommodation supports are available to those who need it, while we work to provide medium to longer term accommodation options best suited to the recovery needs of individuals, families and communities.

Financial counselling and advisory support for businesses  

More than $1.7 million will go towards supporting business owners affected by the January 2026 bushfires by providing access to tailored business recovery advice and financial counselling.

The Business Recovery Advisory Service will be available on the ground and through the Business Victoria website. Business Recovery Advisors will deliver free, confidential one-on-one support to business owners, tailored to their circumstances and supporting their long-term recovery. 

The Small Business Financial Counselling service will provide free and confidential financial counselling to businesses who are in financial risk or at risk of it due to the bushfires.

More information will be available on the Business Victoria website: business.vic.gov.au.

Harcourt Cooperative Cool Store rebuild

Kickstarting Victoria’s agricultural recovery is a priority, with $500,000 going towards accelerating the rebuild of the Harcourt Cooperative Cool Store facility.

More than 95 businesses in Harcourt and the surrounding region rely on the facility to keep apples, pears, seed potatoes, wine, craft beer and beehives at temperature.

Public land and waterway recovery

Funding of $16.1 million will support immediate repair works to public land and waterways, recognising the devastating impact the bushfires have had on the environment.

This includes making roads and bridges safe so they can open as quickly as possible, land management works, as well as pest control and critical mitigation of immediate risks to threatened species and biodiversity. It also includes catchment and waterway restoration activities undertaken with our Catchment Management Authorities, such as riparian fencing support for landholders, and immediate works to address water quality risks and remediate riparian areas.

Prolonged Power Outage Payments for businesses

Almost $1.4 million will ensure businesses are able to access Prolonged Power Outage Payments if they have been without power for seven or more days within a two-week period.

Recognising the integral role small businesses play in communities and the impact of prolonged outages, payments of $3,088 per week will be available for up to three weeks.
As previously announced, eligible households can continue to apply for payments of $2,380 per week for up to three weeks.

Affected businesses can apply for a payment through their electricity distribution business. More information is available at energy.vic.gov.au/about-energy/safety/power-outages.

Recovery Water Tank Rebates

Financial assistance will be available for bushfire-affected rural households that are not connected to mains water supply, with new program to help ensure access to safe drinking water.

Eligible households will receive a rebate of up to $1,500 for cleaning and decontaminating rain water tanks, roofs and gutters that are impacted by the fires. Residents who have already paid for cleaning are also eligible for reimbursement.

Mental health support

More than $6.9 million will deliver additional mental health and wellbeing support for those in bushfire-affected communities.

$4.9 million will expand the reach of existing Mental Health and Wellbeing Locals into areas affected by the bushfires – providing free treatment, care and support for adults.

A list of Mental Health and Wellbeing Locals can be found at betterhealth.vic.gov.au/mental-health-wellbeing-locals.

We know the mental health and wellbeing of young people can suffer significantly after a disaster due to trauma, loss, and disruption. A $2 million investment by the Allan Government will ensure students in identified government schools affected by the fires can access additional mental health support.

How to help

The Victorian Emergency Relief and Recovery Foundation (VERRF) has launched the January 2026 Victorian Bushfire Appeal. Victorians can provide financial support directly to communities impacted by the fires by visiting vic.gov.au/2026-Victorian-Bushfire-Appeal

Goods and services can also be donated through the charity GIVIT by visiting givit.org.au.

Prime Minister Anthony Albanese

“The Federal Government is working hand in hand with the Victorian Government to provide immediate support for communities impacted by the devastating bushfires.

“At the worst of times, we always see the best of the Australian character and we’re seeing that right here in Victoria.

“We’ve got their back, which is why we’re rolling out support now to support communities through the recovery.”

Premier Jacinta Allan

“This is a locally-led recovery, informed by what bushfire-affected Victorians need – and we’re backing them with the funding they need to get on and recover from these devastating bushfires.

“We’ll continue to stand with communities as they start building back better and stronger.”

Prime Minister Anthony Albanese will welcome Their Majesties, The King and Queen of Denmark, to Australia from 14 to 19 March.

During their six-day visit, Their Majesties will visit the Northern Territory, the Australian Capital Territory, Victoria and Tasmania, for a number of business and cultural engagements.

This will be Their Majesties’ fourth official visit to Australia, and their first since His Majesty The King’s ascension to the Danish throne.

Prime Minister Anthony Albanese:

“It is an honour to welcome Their Majesties The King and Queen of Denmark back to Australia.

“It is wonderful that the visit includes many parts of our great country, from the Northern Territory to Victoria, the Australian Capital Territory, and of course Tasmania.

“Denmark and Australia are great friends, and together we are working to build a more sustainable, secure and peaceful future.

“This visit is an opportunity to deepen our cooperation across a number of shared interests such as sustainability, renewable energy and innovation.

“Their Majesties The King and Queen of Denmark have a very special connection with Australia, and I know Australians will welcome them.”

The Albanese Government is accelerating efforts to develop cutting-edge counter-drone technology, teaming with industry to drive innovation, while also updating Defence regulations to keep Australians safe.

A new industry panel has been established to advise Defence and other Australian Government agencies on counter small uncrewed aerial systems (CsUAS) services, enhancing Australia’s ability to detect, deter and respond to emerging drone threats.

The Albanese Government has also enacted the Defence Amendment (Counter-UXS Measures) Regulations 2025 to strengthen our national security by protecting ADF personnel, assets and facilities.

The amended Regulations give authority for Defence, in support of our law enforcement agencies, to detect and disable or destroy drones that are suspected of posing a threat to Australian Defence Force (ADF) assets and establishments.

Defence maintains a range of capabilities to engage with hostile drone technology, with the amendments set to better enable our capabilities to be employed in Australia where it is safe and reasonable to do so.

The Defence Project Land 156 Standing Offer Panel will support Defence and other Australian Government agencies in safeguarding critical infrastructure and operations within Australia.

The initiative represents a significant opportunity for industry to contribute to national security by competing for a diverse range of work across multiple Government agencies.

The first 28 companies selected to the Panel are:

• Advanced Design Technology Pty Ltd
• Anduril Australia Pty Ltd
• Australian Systems Research Pty Ltd Trading as ASR Defence
• Axon Public Safety Pty Ltd
• Beca Pty Ltd
• Codarra Advanced Systems Pty Ltd
• Cubic Defence Australia Pty Ltd
• DEWC Services Pty Ltd
• Droneshield Group Pty Ltd
• EPE OCEANIA Pty Ltd Trading as Explosive Protective Equipment (EPE)
• HENSOLDT Australia Pty Ltd
• HighCom Technology Pty Ltd
• Insitec Pty Ltd
• Integrated Frontline Services Pty Ltd
• JVAT Solutions Pty Ltd
• Leidos Australia Pty Ltd
• Key Options Pty Ltd
• L3HARRIS Space and Airborne Systems Australia Pty Ltd
• NOVA Systems Pty Ltd
• Protegas Australia Pty Ltd
• QINETIQ Pty Ltd
• Raytheon Australia Pty Ltd
• SAAB Australia Pty Ltd
• SME Gateway Pty Ltd
• Solinnov Pty Ltd
• SYPAQ Systems Pty Ltd
• Systems Planning and Analysis Australia Pty Ltd
• SYSTRA ANZ Pty Ltd

Additional suppliers will be confirmed in the coming weeks.

Minister for Defence Industry, Pat Conroy:

“Counter-drone technology is critical to keeping Australia safe, and that’s why the Australian Government is ensuring that Defence and other Government agencies will have access to the best technology.

“This panel will help us to stay ahead of rapidly evolving drone and counter-drone technology.

“It will build on the contracts already announced as part of Land 156 to address the increasing threat of drones in modern warfare and will enhance Australia’s capacity to respond to emerging drone threats.”

Assistant Minister for Defence, Peter Khalil:

“Drones are swiftly becoming a tool of choice for malicious actors across the globe. These regulations will better enable ADF personnel here at home to protect themselves, their assets and the bases in which they operate, which is critical to ensuring we maintain a ready and deployable Defence Force.

“Australia already has sophisticated capabilities to detect and counter drones. The Defence Amendment Regulations will ensure those tools can be used safely and responsibly, so we can respond quickly to threats and keep our communities safe.

Assistant Minister for Defence, Peter Khalil, will today officially open the new MQ-4C Triton facilities at RAAF Base Tindal in the Northern Territory, marking a major milestone for the Australian Defence Force (ADF) and delivering a significant boost to Australia’s air and maritime surveillance capabilities.

Delivered under the $355.7 million Remotely Piloted Aircraft System Facilities Project, RAAF Base Tindal will serve as the home of the Royal Australian Air Force’s MQ-4C Triton aircraft.

The aircraft will be launched at Tindal and flown by Air Force pilots from a ground station at RAAF Base Edinburgh in South Australia. The remotely piloted aircraft system allows the Triton to operate at higher altitudes and remain airborne for longer periods than a traditional piloted aircraft, providing persistent surveillance across Australia’s maritime approaches. 

Designed by BVN and constructed by Sitzler Pty Ltd, the project commenced in May 2023 and includes a purpose-built hangar, working accommodation, upgraded airfield pavements and supporting infrastructure to enable sustained Triton operations.

The new facilities strengthen Defence’s Cooperative Program with the United States Navy and support the 2024 National Defence Strategy, which prioritises enhancing northern bases and investing in uncrewed systems to expand Australia’s intelligence, surveillance and reconnaissance capabilities across the air and space domains.

Since 2022, the Albanese Government has invested over $2.8 billion in strengthening the ADF’s presence across Northern Australia, with 43 projects either completed or underway. Over $166 million in contracts for the Triton facilities project were awarded to Northern Territory businesses, including $7.5 million to Indigenous subcontractors, delivering a significant economic contribution to the region.

Assistant Minister for Defence, Peter Khalil:

“The completion of these facilities at Tindal is a critical step in strengthening our northern defence capability and is yet another example of our commitment to deliver the priorities outlined in the 2024 National Defence Strategy.”

“This suite of new infrastructure will enable the ADF to operate advanced uncrewed aircraft from Australia’s north, enhancing persistent intelligence, surveillance and reconnaissance along our maritime boarders and across the broader region.”

“The project also deepens Australia’s Cooperative Program with the US Navy, by ensuring our forces can operate seamlessly together in support of regional stability.”

“Investing in critical infrastructure and advanced capabilities across our northern bases is critical to ensuring Australia is ready to face whatever challenges arise in the future.”

Federal Member for Lingiari, Marion Scrymgour:

“This project has delivered real benefits for the Territory, supporting local businesses, creating jobs and building skills that will continue to benefit the region well into the future.

“Working closely with local industry and Indigenous contractors has been central to this project, ensuring the investment strengthens not only Defence capability but also the local economy.

“RAAF Base Tindal is a valued part of the local community, and these new facilities will support the men and women who live and work here as they carry out their vital role.”

Special Envoy for Defence, Veterans’ Affairs & Northern Australia, Luke Gosling:

“The completion of the MQ-4C Triton facilities at RAAF Base Tindal reflects the Northern Territory’s central role in Australia’s national security. It recognises the work of our Defence personnel, the importance of our northern bases, and the strength of our local Defence industry in keeping Australians safe.

“This investment gives the ADF a powerful new capability to see further, stay airborne longer and maintain constant situational awareness. It will significantly strengthen our maritime surveillance and ensure Australia is better prepared to respond to emerging security challenges across the Indo-Pacific.”

The Australian Government will provide a further $50 million in humanitarian support to the people of Afghanistan to address the deteriorating situation there.

This brings the total humanitarian support provided to the people of Afghanistan since the fall of Kabul in 2021 to $310 million.

The people of Afghanistan are enduring one of the world’s worst protracted humanitarian crises, exacerbated by the Taliban’s failure to meet basic needs.

Almost 22 million people in Afghanistan are in urgent need of humanitarian support.

The Taliban’s oppression of women and girls, including limiting access to employment, medical services, education and public life, mean they are disproportionately impacted.

Australia’s humanitarian assistance is focused on supporting women and girls, prioritising food security, health services, and protecting dignity, safety and rights.

Australia works with established United Nations partners to ensure our support helps those in need, and not the Taliban regime.

This package will be delivered by agencies including the World Food Programme and the UN Office for the Coordination of Humanitarian Affairs’ Afghanistan Humanitarian Fund.

Foreign Minister Penny Wong:

“The situation in Afghanistan is dire. The Australian Government remains firmly committed to supporting the people of Afghanistan, with a strong focus on women and girls.

“Australia’s humanitarian support will help save lives, alleviate suffering, and meet the basic needs of communities affected by the ongoing Afghanistan crisis.”

International Development Minister Anne Aly:

“This funding will help address urgent humanitarian needs and support vulnerable people across Afghanistan.

“Through this support, we’re continuing our work with trusted partners to ensure assistance is delivered safely, transparently and to those who need it most.”

The Victorian Greens have expressed solidarity with teachers considering industrial action, saying the Allan Labor Government’s $2.4 billion cut to public schools has pushed educators to breaking point.

Victorian teachers are now the lowest paid in Australia, with many able to earn around $15,000 more simply by crossing the border to New South Wales – nearly $300 a week at a time when housing, groceries and everyday costs are soaring.

The bulk of the $2.4 billion of funding that Labor has delayed would have gone towards boosting school staff and increasing staff salaries. 

The Victorian Greens secured an inquiry into public school funding which will begin at the beginning of this year. 

Victorian Greens spokesperson for Education, Dr Tim Read: 

“If you want to know why over 300 teaching positions are vacant, you can ask Jacinta Allan’s Labor Government. It’s no wonder when all teachers have to do is cross the border to NSW to get an extra $15k a year, that’s a pretty enticing argument. 

“The problem will only get worse unless we increase teacher salaries to match their NSW counterparts. Inflation and cost of living are soaring and our teachers deserve better, instead they’re being locked into the lowest salaries in the country. 

“Labor likes to call Victoria the education state, but right now they’re funding schools to fail. We can do better by our teachers, and by our kids.”

Greens spokesperson for communications and Senator for South Australia, Sarah Hanson-Young:

“It’s becoming clearer and clearer Australia needs an overhaul of the triple zero system. It is failing to keep up with changing technology and failing to deliver the most basic of essential services.

“It is a system that is clearly out of date, that relies on whether someone in an emergency has the right phone in their hand – putting people’s lives at risk.

“Sadly, and most worryingly, it’s the most vulnerable who are at the most risk – the elderly and the poorest in our community.