The budget delivered major investment in interoperability, My Health Record and national digital infrastructure, but beware the sharp drop-off after 2027-28.
The Albanese government has delivered one of the largest digital health funding boosts in recent years, pouring hundreds of millions of dollars into interoperability, My Health Record expansion and national digital infrastructure.
Budget papers released on Tuesday show the Australian Digital Health Agency’s total resourcing will rise from $486.6 million in 2025-26 to $517.8 million in 2026-27, alongside a major staffing expansion from 524 to 652 positions.
Over half of that money – $282.6 million to be precise – comes from the government’s broader Strengthening Medicare package. A further $275.2 million will come from that package in 2027-28.
The funding supports a broad national digital health expansion agenda centred on:
- Interoperability;
- structured real-time data sharing;
- My Health Record uptake;
- software conformance;
- cyber security; and
- national digital infrastructure modernisation.
“The Australian Digital Health Agency welcomes the 2026-27 federal budget as a clear sign of the government’s ongoing commitment to digital health as a core part of the national healthcare system,” a spokesperson for the ADHA told HSD.
“These measures not only recognise national Infrastructure, including My Health Record as a foundational element in the delivery of these significant reforms, but confirm strong confidence in digital health as essential infrastructure for a modern, efficient, and consumer-focused healthcare system.
“The investment in My Health Record recognises it as a trusted national asset that is growing in importance and ensures it continues to meet high standards as consumer demand and use has increased exponentially.”
However, the budget papers also revealed a dramatic fall in ADHA program funding after 2027-28.
Agency program expenses fall from $424.9 million in 2026-27 to $357.6 million in 2027-28, before dropping sharply to just $92 million in 2028-29 and $87.4 million in 2029-30.
The papers do not explain the scale of the decline, but the figures suggest much of the current investment is being treated as time-limited transformation funding rather than ongoing baseline resourcing.
At the same time, the Agency is also subject to a future savings measure under the government’s consultants, contractors and labour hire reduction policy, which will cut $6.3 million from the ADHA in 2029-30.
Also in today’s edition:
- First aged care wait times report reveals year-long path into home care
- Not much to celebrate in health budget
- Funding drops buried deep inside aged care budget boost
- Interoperability push will collapse without urgent workforce action: report
- Public hospitals compound the grief of miscarriage: inquiry
- Two years’ wait for ‘kick the can’ response to the diabetes report
A spokesperson for the ADHA told HSD:
“The funding profile reflects the current phase of major national digital health modernisation, with substantial upgrades already underway.
“Once the new FHIR-enabled architecture and operating model are finalised, ongoing sustainment funding can be determined and agreed by government.
“This staged approach will help ensure that future investment is grounded in a clear understanding of what will be required to support a transformed, future-ready healthcare system that is designed to adapt, innovate and deliver for the needs of all Australians in the years ahead.”
Anja Nikolic, CEO of the Australasian Institute of Digital Health, told HSD that the investment in digital health measures was “significant” and welcome.
“The funding for … improving My Health Record is a significant investment that reinforces the trusted and safe development and use of digital health in Australia,” said Ms Nikolic.
“We welcome the legislative reforms that will expand sharing by default requirements, which the government says will provide over 24 million Australians with better access to My Health Record.”
Ms Nikolic also highlighted two budget measures to be found in the fine print.
“The government’s $26.5 million investment to make it easier and safer for customers to access government services digitally using myGov is a very welcome measure,” she said.
“Ongoing investments in digital technologies have been highlighted in the Budget Papers, which will support modernised health service delivery.
“The Federal Budget also includes $13.3 million over two years for Sparked, the national fast healthcare interoperability resources accelerator program, which is led by CSIRO.
“Sparked is critical in ensuring Australia’s healthcare system is interoperable and uniform. AIDH strongly recommends ongoing funding beyond the two-year horizon.”
Ms Nikolic said the AIDH was waiting to see how the Budget would affect the Capability Action Plan, which supports the critical uplift of digital health skills for the healthcare workforce, and without which investments in technology and interoperability “will not bear fruit”.
The AIDH also acknowledged the budget announcement that the Department of Finance would work with regulators “to explore how data and digital technologies, such as AI, can improve service delivery, improve productivity and reduce regulatory burden for people and business”.
“Creating trust, safety and security of AI and digital technologies through appropriate regulations is essential in the wider economy, and particularly in health,” she said.
Related
National digital child health record
The budget also included funding for the development of a national digital child health record under the Thriving Kids package, with the ADHA receiving $12.2 million in 2026-27 and $6.9 million in 2027-28 to complete the project.
The papers also confirmed digital health integration would increasingly extend into aged care regulation, with the Aged Care Quality and Safety Commission explicitly referencing oversight of “operators of aged care digital platforms” under the new Aged Care Act 2024.