Australian Federal Budget 2024-25: Health initiatives 

Health was a priority in the Budget under the pillar of strengthening Medicare and the care economy. It is reassuring to see that health investment was spread across various areas, including the prioritisation of healthcare system investment, improved health outcomes and better access to mental health support.

However, the health spend does not fully align to the Treasurer’s commitment to investing in the promise and potential of a more prosperous future. We believe more investment in preventative health and early identification of illness is needed if we want a workforce that continues to thrive as they age.

One of the most significant initiatives for working populations is the $888.1 million investment in mental health support.  This is a major win for all Australians, particularly those with mild mental health concerns. A key aspect of this initiative is a low-intensity digital service that can be accessed without a referral, which is well-suited to the needs of our workforce. Recent data from Mercer’s Global Talent Trends study shows that 82 percent of the workforce is at risk of burnout or exhaustion, highlighting the importance of this support.  

Improving the health of our workforce requires a combined effort. As expected, the Budget prioritises investment in services for those who are already unwell, including boosting regional and remote clinics and supporting older Australians to avoid hospitalisation. While there is some investment in prevention through sports participation programs, we look forward to seeing more details on this initiative.

Employers have an opportunity to fill the gap by providing preventative screenings and early intervention, responding to calls from employees for more general health initiatives to be delivered through the workplace, such as digital health tools. According to the 2023 Mercer Health on Demand report, preventative cancer screenings were ranked as the most helpful employee benefit, and digital tools were highly rated across a range of health services. This presents an opening for employers to provide scalable, digital solutions that better care for their people and improve health outcomes more broadly.

The Treasurer made it clear that this Budget is focused on cost-of-living relief. This is reflected in the health spending related to the Pharmaceutical Benefits Scheme (PBS) listed medications and additional urgent care. The cost of PBS-listed medications will be frozen for anyone with a Medicare card for two years and, for concession card holders and pensioners, the freeze will last five years. Additionally, the Government will fund 29 new Medicare Urgent Care Clinics. We believe any investment that makes it easier for more Australians to get access to the care that they need and reduces the burden on the public health system is a step in the right direction.

Employers have the opportunity to take this further by implementing policies that make it easier for their workforce to access healthcare. For example, some employers allow personal leave for preventative appointments or offer regular wellbeing leave that employees can use for non-urgent health appointments. 

The Budget also prioritises broadening opportunity and advancing equality. Employers have a responsibility to continue the diversity, equity, and inclusion agenda within the workplace, ensuring that they support all colleagues including women, Aboriginal and Torres Strait Islander Australians and the most vulnerable. For example, from a health perspective, this involves investing in women’s health. Menopause care is specifically mentioned in the Budget, although details are yet to be provided. The focus on women’s health aligns with what we are hearing from our clients, who frequently request support for women’s health for each stage of the lifecycle.  

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