Victoria’s health system will receive an $11.1bn cash injection in the state budget, with hospitals to receive more funding and pharmacists given greater powers to prescribe medications without the need for a GP visit.
The budget, which will be handed down by the state’s treasurer, Jaclyn Symes, on Tuesday, includes a $9.3bn boost for public hospitals.
It comes less than a year after a $1.5bn lifeline was provided to hospitals, which had warned they would be forced to close beds, delay elective surgeries and sack staff if required to rein in spending, as had been requested by the government during the 2024 budget.
Public backlash to the hospitals’ concerns at the time also prompted the government to abandon plans to merge some health services.
The government said the latest investment would give “every public hospital the certainty to plan for the future and keep delivering the world-class care Victorians rely on”.
Tuesday’s budget will also include $48.2m for urgent care clinics and make permanent a community pharmacy prescribing program, which has been trialled since October 2023.
The scheme has allowed pharmacists to treat conditions such as uncomplicated urinary tract infections, minor skin issues such as psoriasis, and supply oral contraceptives without the need for a prescription.
The funding will allow the program to be expanded to include treatments for allergies, nausea and high blood pressure. Unlike similar programs in Queensland and New South Wales, consultations in Victoria will be free.
The expansion is expected to face pushback from the Royal Australian College of General Practitioners and the Australian Medical Association, both of which opposed the initial trial, citing patient safety concerns.
But the government argues the scheme will help “reduce pressure” on the health system and support Victorians who “cannot wait or pay for a visit to their GP”.
An additional $634.3m will also go towards operationalising nine new or upgraded hospitals across the state, including at Footscray, Frankston and Maryborough.
The premier, Jacinta Allan, said she would “always fight” for a strong public health system.
“That’s why I’m focused on investing in our world-class health system and backing our doctors, nurses, midwives, paramedics and all other frontline health workers – so Victorians can get the care they need, when and where they need it,” she said.
The government said the additional $11.1bn would bring the total amount of health funding in the budget to $31bn.
However, questions remain about the future of a number of key health and mental health programs, with analysis by the independent Parliamentary Budget Office – commissioned by the Greens – showing almost 30 health department initiatives will expire at the end of the financial year unless renewed.
On Monday, Symes said the budget would include a $600m projected operating surplus for 2025-26 – Victoria’s first since the pandemic began. This is $1bn less than the surplus touted in December’s mid-year budget update, which she said was a deliberate decision to prioritise cost-of-living relief for Victorians.
Symes said her first budget would be shaped by “responsible decisions”, such as returning infrastructure spending to “pre-pandemic levels”, stabilising debt and cutting “several thousand” public sector jobs.
