Written by Kirsty Blades, CEO, Palliative Care NSW
The 2026 Federal Budget delivers mixed results for palliative and end of life care. Of most concern was the announcement that the Comprehensive Palliative Care in Aged Care (CPCiAC) measure would not be funded by the Federal Government from 1 July this year.
This was a 50/50 cost-shared funding agreement between State and Federal Governments aimed at improving palliative care for older Australians living in residential aged care. Here in NSW CPCiAC funding was approx. $7.2M in this current financial year. Funding was split across each local health district and funded the provision of training and resources for RACH staff to enhance their capacity to provide palliative and end of life care, and support to establish and maintain dedicated palliative and end of life care workforce roles in each local health district to coordinate care for RACH residents.
Palliative Care NSW will be continuing to advocate for the NSW Government to maintain this funding, separate to the commitments of the World Class End of Life funding. If you have information, stories or data to share that demonstrates the positive impact of the CPCiAC program please share with me: kirsty@palliativecarensw.org.au
A more positive announcement was the Government’s decision to remove the restriction on participants in the Support at Home End-of-Life Pathway from receiving funds under the Pathway for longer than 16 weeks. From February 2027, with timing to be confirmed, Pathway participants who live longer than 12 weeks will have their funding rolled over for a further 12 weeks.
As previously announced by the Government, the Budget also included full funding for personal care for Support at Home participants ($1.0 billion over four years from 2026–27). Out-of-pocket costs for these services will be removed from 1 October 2026. All personal care services (including showering, continence care, attendant care including for dressing and eating and mobility, and assistance to self-administer medications) are included in the change. These are welcome changes reflecting sustained advocacy from Palliative Care Australia and many aged care stakeholders.
The following is an overview of other relevant announcements in the 2026-27 Federal Budget, including Budget measures specific to palliative care and initiatives in the health, aged care and disability portfolios. The 2026 Budget was comparatively light touch, especially in the health, aged care and disability portfolio. The amount of newly funded initiatives is noticeably smaller than has typically been seen historically; for example, there is very little to support the health workforce.
Specialist palliative care and palliative care sector
The Palliative Aged Care Outcomes Program (PACOP) and Program of Experience in the Palliative
Approach (PEPA) have received $5.5 million in 2026–27 to continue to upskill the aged care and primary care workforces in palliative care. It is our understanding that this extends funding for both programs for an additional year, and is separate to the National Palliative Care Projects funding.
Aged care
The Budget includes an extension in funding for Support at Home End-of-Life pathway participants who live beyond the initial funding period (12-16 weeks), to ensure continuity of aged care services. Funding for this change is part of a commitment of $389.8m / four years (and $40.5m per year ongoing) for changes to assessment, improvements to hardship applications and bringing forward the release of Support at Home program places (which are anticipated to total 420,000 in 2026-27).
The change to the End-of-Life Pathway will require amendments to the Support at Home Rules. Legislative changes are unlikely to be finalised before September. Changes will also be required to assessment processes and ICT systems. As a result, it is not anticipated that the change will come into effect before February 2027.
The budget also includes full funding for personal care for Support at Home participants ($1.0 billion over four years from 2026–27). Out-of-pocket costs for these services will be removed from 1 October 2026. All personal care services (including showering, continence care,
attendant care including for dressing and eating and mobility, and assistance to self-administer
medications) are included in the change.
Other budget announcements in aged care include:
- Expanding the Hospital to Aged Care Dementia Support program from 11 to 20 locations nationally and up to 20 additional Specialist Dementia Care Program units.
- $6.7 million in 2026–27 to extend grants that provide innovative respite support and respite care planning to people with dementia under the Support for Informal Carers program.
- $1.0 million over two years from 2026–27 to progress the implementation of a national worker registration scheme for personal care workers employed in aged care, including options for mandatory minimum qualifications and defined professional scope and competency standards.
- Funding for additional residential aged care places, and to encourage construction of new facilities and capital upgrades ($606.5 million over four years from 2026–27, and an additional $3.0 billion from 2030–31 to 2035–36 to respond to the Residential Aged Care Accommodation Pricing Review), including $348.4 million over four years from 2026–27 (and an additional $2.7 billion from 2030–31 to 2035–36) to introduce capital subsidies for residential aged care providers, including $30.00 per supported resident per day upon commencement of newly constructed homes, payable for up to 25 years and $15.00 per supported resident per day upon commencement of significantly expanded homes, payable for up to 15 years.
Key announcements that were anticipated but were missing in the 2026 Budget are an extension of the deadline for introducing price caps for Support at Home, and clarification of the future of services currently delivered through the Commonwealth Home Support Program.
Disability and functional supports for those under 65
There were no new announcements (in either disability or health portfolios) that respond to the needs of people under 65 who require functional disability supports as a result of a life-limiting illness, but are not eligible for NDIS.
Public hospital funding
The Budget commits $220.3 billion over 5 years from 2026-27 to states and territories under the National Health Reform Agreement, with the aim of “ensuring integration of health, aged care and disability services to ensure seamless care and accessibility for all Australians”. This includes $248.7 million / 5 years for implementation of the new NHRA Aboriginal and Torres Strait Islander health schedule.
Other health announcements
Other announcements with potential impacts for people with life-limiting illness include:
- Delayed hospital discharge: Funding ($430.2 million / 3 years) for state/territory initiatives to address delayed hospital discharge of older patients through hospital avoidance and earlier discharge initiatives.
- Primary care: Additional investments in Medicare Urgent Care Clinics (extended hours primary care for urgent but not life-threatening illness) ($1.8b / 5 years for ongoing funding), and $25.3 million / 3 years for construction of up to six additional fully bulk billing urgent care clinics.
- Cancer clinical trials: $71.0 million over three years from 2026–27 to continue the Precision Oncology Screening Platform Enabling Clinical Trials program to give patients with advanced or poor prognosis cancer access to comprehensive genomic profiling to identify matches to potential clinical trials.
- Dialysis services for First Nations people: $53.0 million over 4 years from 2026-27 will fund the completion and operation of dialysis units and support accommodation under construction in remote and very remote communities, to address kidney disease (the leading cause of mortality for First Nations people).
- Medical and health research: $40.1 million / 4 years to establish the Neale Daniher MND Clinical Research to accelerate research, expand clinical trials and transform outcomes for patients; and an increase in Medical Research Future Fund disbursements by $505.2 million / 4 years (increasing to $1 billion annually from 2030-31).
Primary care
- $25.3 million over three years from 2026–27 will be provided to deliver up to six fully bulk billing general practice clinics in the Central Coast, Newcastle, Lake Macquarie, and Hunter regions to provide greater access to bulk billing in these regions.
- $54.5 million over three years from 2025–26 to support the Primary Health Network After Hours and Homelessness Access programs for two years until 30 June 2028 to maintain access to primary care for at-risk health populations.
- The Government will extend contingency arrangements in 2026–27 to support a nationally consistent rollout of the free, nationwide 24/7 telehealth service 1800MEDICARE.
Cancer care
- $47.6 million over four years from 2026–27 (and $19.4 million per year ongoing) to maintain access to affordable cancer treatment for concession card holders, by increasing the value of grants under the Radiation Oncology Health Program Grants Scheme Medications, shortages and supply.
- The Government will provide $5.9 billion over five years from 2025–26 for new and amended listings on the Pharmaceutical Benefits Scheme (PBS) and Repatriation Pharmaceutical Benefits Scheme.
More information is available in the Budget papers. Information for this summary is drawn from:
Health, disability and ageing portfolio budget statements
Budget Paper 3, Federal Financial Relations
Budget Paper 2, Budget Measures.
Thank you to the policy team at Palliative Care Australia for their contribution to this summary.