Record health funding will deliver new hospitals, 2600 beds and more frontline staff as Queensland tackles hospital pressures.
Queensland will spend a record $35.5 billion on health this year as the state government promises to restore hospital services, reduce ambulance ramping, and deliver thousands of new beds.
Treasurer David Janetzki used his budget speech to say the state’s health system was showing early signs of recovery after years of strain, pointing to ambulance ramping falling to its lowest level in five years and elective surgery waiting lists stabilising following investments made in last year’s state budget.
“With a record $35.5 billion health budget, we’re continuing to restore health services for Queenslanders as we heal Labor’s health crisis,” he said.
Health remains the state’s largest area of expenditure, with the budget backing the government’s Hospital Rescue Plan and a major expansion of hospital infrastructure across Queensland.
The centrepiece is a fully funded program to deliver three new hospitals at Toowoomba, Coomera and Bundaberg, alongside expansions at 10 existing hospitals that will add more than 2600 beds to the public health system.
The centrepiece of the package is the government’s Hospital Rescue Plan, which will deliver three new hospitals at Toowoomba, Coomera and Bundaberg and expand 10 existing hospitals to add more than 2,600 beds across the state.
The budget also includes an additional $750 million in 2026-27 to make it easier for Queenslanders to access health services, funding that will help hospitals recruit specialist staff, support emergency and elective surgery services and bring more than 200 new beds online.
New capacity will be opened at Hervey Bay Hospital, where funding will support 25 additional inpatient and intensive care beds, while Cairns Hospital will gain 32 extra overnight beds through the first stage of its expansion. The Ripley Health Services expansion will add 90 overnight beds in the West Moreton region and the Gold Coast sub-acute facility will provide access to up to 70 overnight beds.
The funding package also includes 13 new chemotherapy chairs at Logan Hospital, expanded cardiac catheter laboratory services at Rockhampton Hospital and 34 interim care beds in Wide Bay designed to improve patient flow and reduce delayed discharges.
Regional Queensland patients who need to travel for treatment will receive a boost through an $11.7 million increase to the Patient Travel Subsidy Scheme, lifting the fuel reimbursement rate from 34 cents to 45 cents per kilometre.
Mental health services are another major winner, with the government committing an additional $394.4 million over four years and more than $104 million annually ongoing for expanded services. The funding includes more than 30 new perinatal mother and baby beds across Brisbane, Cairns, Townsville, the Sunshine Coast, Logan and Ipswich, as well as new adolescent mental health beds in Cairns, additional acute mental health beds in Rockhampton and expanded psychiatric assessment services at Princess Alexandra Hospital.
The government will also spend $93.1 million over four years to strengthen mental health assessment and treatment in emergency departments, aiming to improve care for patients presenting in crisis.
The budget continued the government’s attack on the former Labor administration, with Mr Janetzki arguing many previously announced hospital projects were unfunded and undeliverable.
He said the findings of the Sangster review in 2025 showed many projects amounted to little more than announcements without the funding or planning needed to proceed.
Throughout the state, hospital projects were now reaching construction milestones or opening their doors, while existing facilities were receiving upgrades intended to boost capacity and ease pressure on emergency departments, according to the government.
The budget also includes funding for thousands of additional frontline health workers, with the government betting a combination of new infrastructure and workforce growth will help meet demand from Queensland’s rapidly growing population.
The record investment comes as hospitals continue to face rising patient numbers, workforce shortages and increasing demand for complex care.
While the government said key performance indicators were beginning to improve, the success of the budget will ultimately be judged by whether patients experience shorter waits for ambulances, emergency treatment and elective surgery.
The Royal Australian College of GPs (RACGP) welcomed key health investments particularly funding aimed at prevention, immunisation, and improving access for vulnerable communities.
RACGP Queensland chair Dr Cathryn Hester said the budget included several measures that recognise the vital role of general practice in keeping communities healthy and out of hospital.
“We’re pleased to see a $37.5 million investment over five years to deliver kindy health checks,” she said.
Related
“Early identification of developmental, behavioural, and health concerns is crucial. Supporting children at the earliest stages of life enables better long-term health outcomes and reduces pressure on the health system down the track.”
The RACGP also welcomed the Government’s ongoing $31 million commitment to influenza immunisation programs.
“Vaccination is one of the most effective and cost-efficient ways to protect the community,” Dr Hester said.
“Ensuring continued access to free or funded flu vaccinations will help reduce illness, hospitalisations, and pressure on frontline services, especially during winter.”
The college noted reforms to the Patient Travel Subsidy Scheme as a positive step toward improving equity of access.
“Queenslanders in rural and remote areas often face significant costs and barriers when accessing care,” Dr Hester said.
“Changes to travel subsidies are an important part of making healthcare more accessible, regardless of where you live.”
The RACGP also welcomed investment in essential infrastructure for Aboriginal and Torres Strait Islander communities, including 21 new projects to improve drinking water and wastewater management, supported by $74 million through the Closing the Gap Priorities Fund.
“Safe water and sanitation are fundamental to good health outcomes,” Dr Hester said.
“These investments address critical social determinants of health and will contribute to better long-term outcomes for Aboriginal and Torres Strait Islander peoples.”
The RACGP welcomed the Queensland Government’s stated intention to maintain a policy environment that supports the viability of general practice, including messaging around avoiding unnecessary increases to payroll and land tax.
“General practices are small businesses delivering essential healthcare,” Dr Hester said.
“Keeping payroll and land tax settings stable and sustainable is critical to ensuring practices can continue to operate, employ staff, and provide accessible care to their communities.”
Importantly, the RACGP noted the government’s statement in the Budget speech that it did not support the establishment of state-owned GP services.
“We support a strong, independent general practice sector working in partnership with government,” Dr Hester said.
“Investing in existing community-based GP care is the most efficient and effective way to strengthen primary care and deliver for patients.”
The AMA was somewhat less impressed with the budget, which it said had taken a “business as usual” approach to the health sector.
AMA Queensland president, Associate Professor Erica Gannon, said the $35.5 billion dollar health budget represented only a 7.25% increase on last year’s budget.
“We needed the health budget to grow by more than 9% just to keep pace with increased population, demand and CPI,” she said.
“While we always welcome all health investment, Queenslanders are struggling to get health care now, especially in our regional areas.”
Professor Gannon said new spending in this year’s budget included $297 million for Surgery Connect.
“This is a short-term measure that will help bring down surgical waiting lists, but we need to increase public hospital capacity to deliver more timely treatment to Queenslanders no matter where they live,” she said.
“We acknowledge the modest increase in the fuel rebate component of the Patient Travel Subsidy Scheme.
“The extra 11 cents per kilometre will give some relief to rural and regional Queenslanders forced to travel for the treatment they need, but increased investment in public hospital funding would allow more of these patients to be treated closer to home.”
AMA Queensland was also disappointed not to see the government’s workforce plan released today.
Queensland Health’s own data shows the state needs 6000 extra doctors by 2032.
“Doctors, nurses and allied health professionals form the backbone of our health workforce,” Professor Gannon said.
“We acknowledge workforce planning is a complex issue but we need to see the government’s plan on how it intends to build our future workforce to fill the projected shortfalls.
“Without a long-term plan we can’t attract and keep doctors in places and specialities where they’re needed.”
Also missing from the budget were details on how and when the state’s mental health levy would be spent.
“Queenslanders rightly want these funds spent on programs that keep people out of crisis mental health situations,” Professor Gannon said.
“People must get mental health care as well as screening programs, specialist appointments and elective surgery when they need it.”
The budget overview is available here.