State & Federal Budgets 2026-27: A Missed Opportunity for Tasmanians’ Health?
22 May 2026

Tasmanians continue to face long waits, rising costs and difficulty accessing care. While this year’s State and Federal Budgets include important investments, there remains a clear gap between where funding is directed and what people say they need from the health system.
Tasmania’s health system is showing clear signs of strain, with many people unable to access care at the point they need it. Long waits, and too often treatment only occurs once conditions have deteriorated, driving more complex care and higher costs. While both State and Federal budgets continue to prioritise hospital investment, community feedback consistently points to a different need: earlier support, more accessible local services, and care that people can afford.
Initiatives like the State Government investment in preventive health ‘Health Revolution’ are an important step forward, but without a stronger and sustained shift toward prevention, timely access, and community-based supports, including through the community sector and the NDIS, the pressures on the system are likely to persist.
New analysis, based on consumer and community feedback across Tasmania, shows a clear gap between government investment priorities and lived experience in the health system. Health Consumers Tasmania’s annual ‘Pulse Check’ survey clearly showed us what Tasmanians are experiencing when it comes to health and healthcare access.
Tasmanians have told us they desperately need care earlier and closer to home, and many said they are delaying or going without care because they cannot access or afford it when they need it. People told us they are waiting months or years for treatment, struggling to access a GP, and too often only getting help when their condition has worsened.
Across the state, people consistently reported:
• Difficulty accessing GP’s
• Waiting months to years for specialist care and surgery
• Extended delays in accessing public dental services
• Delaying care because of cost pressures and lack of access
Tasmanians overwhelmingly told us they need:
• Care when they need it
• More affordable services
• Better access to preventive care and early intervention
Budgets giving and seemingly taking investment in hospitals, but will the results have impact in improving access?
The Tasmanian Government’s 2026–27 Budget includes:
• More than $15 billion in health spending over the forward estimates
• $1.2 billion for Emergency Departments
• Significant investment in hospital infrastructure and demand management
• $700 million in required efficiency savings in health over four years
• A reduced investment in the community service sector
The Federal Budget also continues major investment in:
• Medicare and primary care
• Workforce and service demand
• A $700 million increased investment in Tasmanian hospitals over five years under the national agreements
But the Federal budget is also seeing a $37.8 billion in reduced NDIS payment growth, which is deeply concerning for people with disability who rely on supports and the potential implications for their health and wellbeing.
Many Tasmanians have experienced positive improvements from the Federal Government Strengthening Medicare changes with access to bulk billing GP’s in the state increasing significantly for rural and regional people. These measures have been worthwhile and are having impact.
Is this a clear trade-off: $700m in savings vs a $700m opportunity?
A key issue in this year’s budget is the contrast between:
• $700 million in additional Federal funding for Tasmanian hospitals, and
• $700 million in efficiency savings required by the State Government
This raises an important question: will the additional Federal investment translate into real improvements for patients, or be offset by cuts and constraints elsewhere in the system?
There is a real risk that this could represent a missed opportunity, where significant new funding does not lead to meaningful improvements in access, outcomes, or patient experience.
Tasmania had an opportunity to use this funding to strengthen the system, but it is not known where the impacts of efficiencies will come from and the impacts they may have.
And while these investments made broadly in health at both State and Federal levels are critical, they are largely focused on treating illness rather than preventing it or improving timely access.
A big step forward on prevention, but not yet at scale
Tasmanians have told us that preventing illness and staying out of hospitals is what they want. We know that investment in prevention brings long term savings and that the expenditure on acute care will be reduced if those investments are made. Tasmania cannot afford to not invest heavily in prevention.
We welcome the news of a new investment in prevention. $20 million over four years to begin implementing the Health Revolution, the state’s 20‑year preventive health strategy. This is a big step forward in the right direction and with further investment from other areas of Government, this could have a big impact for the health and wellbeing of Tasmanians into the future and see a reduction in the more than $10 million a day that Tasmania’s health system currently costs.
This is supported by additional measures such as:
• $30.8 million for breast cancer screening expansion
• $16 million for free GP access through TassieDocs
However, when compared to overall spending, prevention funding remains small relative to the billions invested in hospitals and we need to see this investment and focus continue and increase.
We encourage the Federal Government to make further investments in prevention and want to see 5% of health budgets dedicated to prevention.
Key finding: the system is under strain because care comes too late
Tasmanians are telling us that they are experiencing a system where care happens too late, costs too much, and takes too long to access.
Without stronger investment in:
• Preventive health
• Early intervention
• Community-based care
People are forced to enter the system at crisis point, increasing pressure on hospitals and driving longer wait times.
Tasmanians are telling us very clearly, they can’t get care when they need it. They’re waiting months or even years, and too often only getting help when their condition has worsened.
Both budgets invest heavily in hospitals, but people are asking for something different: care earlier, closer to home and at a price they can afford.
The investment in the Health Revolution is a welcome step which we applaud, but without a stronger shift from State and Federal Governments to prevention, access and community level supports, including through the community service sector and the NDIS, the system will remain under pressure now and into the future.
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