NSW Treasurer, The Hon Daniel Mookhey MLC handed down the 2026–27 NSW Budget on Tuesday 23 June 2026.
One of the key announcements by the Treasurer was that “this Budget delivers the largest health commitment in the history of NSW.” But the question remains, will this commitment see an increase in palliative care funding to meet the rapidly increasing demand for palliative care?
The Treasurer announced:
- Health is the largest single commitment in this Budget.
- $10.3 billion increase in health funding over four years, delivered with the Australian Government, will recruit 9,000 more health workers and fund around 2,900 more planned surgeries a year.
- $11.9 billion for health infrastructure over four years, including funding 32 new and upgraded hospitals and 2,500 more beds and treatment spaces.
- Nurses and midwives received a record pay increase, the largest increase for registered
nurses in more than twenty years, and the largest ever for enrolled nurses, backed by an
additional $2.9 billion in this Budget to support the higher wages and improved conditions. - $35.7 million for an Aged Care Reform package to free up beds across the state.
More detail on the investment into health can be read here: Overview: Supporting families, securing our future – Health | NSW Government
Including $35.7 million for an aged care reform package with a focus on transitional aged care and discharge support, reflects a growing recognition that many people are in hospital simply because there is nowhere appropriate for them to go. This shift toward care in the community is both necessary and overdue.
The budget takes a welcome step toward tackling hospital “bed block,” with around 1,200–1,300 beds occupied by patients waiting for aged care or NDIS support.
As Palliative Care NSW CEO Kirsty Blades notes, “The NSW Government should be commended for recognising the scale of hospital bed block and investing in practical solutions that help people leave hospital sooner, safely and to a place of their choosing.”
But it raises a crucial question for patients and their families: what care are patients being discharged into?
“Many of the patients experiencing delayed discharge are people with complex, life-limiting illness. For them, this is not just a system issue it is an end-of-life care issue.”
National data from the Australian Institute of Health and Welfare (AIHW) reinforces this point. More than half of palliative care-related hospitalisations end in death, highlighting how often hospitals become the default setting for end-of-life care. Between 2015-16 and 2023-24, palliative care hospitalisations increased by 46%, and palliative care related hospitalisations grew at an annual rate of 4.9%, compared with 2.3% for hospitalisations overall. This reflects the increasing need and demand for palliative care in communities across New South Wales.
The NSW Budget’s focus on hospital-in-the-home, outreach services, and improved discharge planning is therefore promising. These approaches align with what palliative care already demonstrates: with the right support, many people can be cared for safely and comfortably outside hospital.
But to make the government’s vision a reality, palliative care must be more explicitly embedded in reform. Evidence consistently shows that people receiving home-based palliative care are less likely to present to emergency departments, spend fewer days in hospital in their final year of life, and are more likely to receive care and die in the place of their choosing.
As Ms Blades puts it, “Palliative care has a critical role to play in these reforms, ensuring more people receive the right care, in the right place, at the right time.”
Targeted investment in community palliative care, sub-acute palliative care units, supportive care models, specialist teams, rapid response services, and stronger integration with aged care and NDIS supports would ensure that faster discharge is matched with high-quality care. It would also help address a deeper issue around patients and families not simply waiting for placement, but for the kind of coordinated, holistic care that palliative services provide.
“If we are serious about reducing pressure on hospitals, we must invest in the services that support people to stay out of them including community-based supportive and palliative care,” Blades says.
The NSW Government is right to act and deserves credit for taking practical steps forward. But the opportunity now is to build on that momentum by ensuring end-of-life care is central to the solution for our ageing population.
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Palliative Care references in the budget papers
2026-27 Budget Paper No.3 – Infrastructure Statement
Orange Health Service Palliative Care spaces (pg. 94, Key Health projects delivered in 2025-26)
Delivered as part of the World Class End of Life Care Program, the expansion of inpatient palliative care spaces includes three new dedicated palliative care bedrooms with support spaces, enhancing comfort and privacy for patients and families. The new palliative care rooms are designed to create a peaceful, home-like environment to support patients and families. The spaces feature access to natural light, fresh air, and communal indoor and outdoor areas.
Wentworth Health Service Redevelopment (pg. 95, Key Health projects delivered in 2025-26)
The project delivered a new purpose-built health service including a 19-bed inpatient unit with a direct view of the Darling River from all bedrooms, a palliative care suite, dining room, family gathering room, patient gym, courtyards, community health rooms and a new Urgent Care Centre.
Camden & Campbelltown Palliative Care (pg. 136, Works in Progress)
Value: $2,800,000.00