Health, Aged Care and Disability Sector Insight
19
May
2025
1
min read

The health, aged care and disability sectors were a clear focus for Prime Minister Albanese during the Federal Election campaign. York Park Group has summarised the major policy pledges and looked at the priorities for the sectors in the 48th Parliament of Australia.
York Park Group's Thoughts
We welcome the addition of NDIS as part of the newly formed Department of Health, Disability and Ageing as it shifts the NDIS from being seen by some as a form of welfare, to being a part of the holistic health system.
Bringing the states together by 1 July will be a huge challenge for Minister Butler and, with multiple portfolio priorities, he will need to lean on the expertise and stakeholder management of the Minister for NDIS, Senator Jenny McAllister, and Minister for Aged Care and Seniors, Sam Rae.
Above all of this is the continued growth of the care economy and its importance in lifting Australia’s productivity, and there are a number of new MPs with professional histories in the care economy. Success in this portfolio is critical to the success of the Albanese Government.
Ministers
Mark Butler has been re-appointed Minister for Health. The Prime Minister also announced that the NDIS will now fall under the Health portfolio, moving from the ministry of Social Services.
Minister Butler is a close confidant of the Prime Minister, and he is regarded as one of the most competent ministers in the Albanese Government, hence why he has been given the behemoth task of dealing with the NDIS.
Senator Jenny McAllister has been appointed alongside Minister Butler as Minister for the National Disability Insurance Scheme. Senator McAllister is highly regarded, coming from the Emergency portfolio.
Splitting the responsibility between Minister Butler and McAllister speaks to the scale of the task of reforming the enormous system, and continuing the work done by former Minister for the NDIS, Bill Shorten.
Sam Rae has been newly appointed as Minister for Aged Care and Seniors, taking on the role from Anika Wells. Building on the reforms of the previous Government, Mr Rae will be responsible for the Aged Care Reform Act which is set to begin in July.
Rebecca White is a new member of Parliament, and former Labor Leader in Tasmania. She will assume the role of Assistant Minister for Health and Aged Care.
Election Review
As cost-of-living dominated the conversation during the election, the main focus of the health and aged care policies announced was improving accessibility and affordability.
Key issues for sector include workforce shortages, the new reforms, and balancing government priorities with running a viable business.
The policies that the Labor Party announced during the election campaign included:
- $8.5 billion to improve bulk billing rates and train more GPs and nurses. This contributes to the Albanese Government’s central goal of making nine out of ten GP visits free by the end of the decade.
- $689 million to reduce the price of PBS-listed medicines to no more than $25 a script.
- $1 billion for mental health including $500 million for 20 youth specialist care centres, $225 million for 31 new and upgraded Medicare mental health centres, and $200 million for headspace centres.
- $204.5 million investment in 1800MEDICARE; this will be a free, nationwide 24/7 health advice line and afterhours GP telehealth service.
- $573 million to improve women’s health and access to contraceptives.
- $644 million to open 50 new bulk-billing urgent care clinics across Australia by 2026.
- $2.6 billion for a pay-rise for Aged Care nurses.
During the campaign, GPs were quick to highlight that the Government’s goal for nine out of ten visits to be free is not feasible. The need to charge out-of-pocket fees to cover overheads is a reality many GPs face. Striking the right balance between providing accessible healthcare and maintaining a financially viable practice will be a key issue for GPs moving forward.
In the election campaign, the Coalition matched almost of Labor’s health policies, including the $8 billion investment in Medicare.
Policy Continuation
Looking back on what the Albanese Government delivered for the health, aged care and disability sector during its last term that it will continue to build on:
- NDIS cost management and ensuring the scheme works for all Australians.
- Removing dodgy NDIS service providers.
- A $5.6 billion investment with the introduction of the Aged Care Reform Act.
- Delivery of 87 Medicare Urgent Care Clinics - the continued delivery of these clinics, with physical places that voters could see, helped position Labor as the party for healthcare in 2025.
- Workforce shortages continue to plague the sector. It is estimated that by 2030, this aged care worker shortage will hit 110,000, 123,000 nurses, and over 7,500 GPs.
- Commencement of the Aged Care Bill in July 2025 will likely see organisations have to increase investment in staff training, compliance monitoring systems and quality assurance processes.
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