Key measures announced by the Government include multi billion dollar system-level funding in digital health relevant investments across infrastructure, platforms and compliance systems. This investment is primarily concentrated in national platforms (My Health Record and Medicare systems) and digital enablement of National Disability Insurance Scheme (NDIS), aged care and hospital systems.

• The Government is taking measures to transition the Australian healthcare system toward a highly integrated, data-centric model anchored by government platforms.
• Interoperability, real‑time data exchange and compliance with national data standards are becoming core requirements, not differentiators, for digital health providers.
• Government investment continues to prioritise centralised digital registries and patient-facing platforms, reinforcing the role of structured data environments and creating potential integration opportunities for sector providers.

• The Government will invest heavily to enhance digital health capabilities across healthcare reform programs, with a focus on vulnerable groups.
• More specifically, the Government announced:
  • AUD 745.1 million over four years from 2026–27 (and AUD 17.6 million ongoing) will be allocated to strengthening the integrity and functionality of Medicare systems and infrastructure, including digital system capability and integration.
  • AUD 358.5 million over five years from 2025-26 will be allocated to develop and implement a new NDIS digital enrolment and payment system to improve payment integrity and reduce fraud.
  • AUD 259.9 million in 2026–27 will be allocated for sustainment of aged care Information and Communication Technology (ICT) systems, including system capability and digital infrastructure uplift, alongside AUD 33.7 million to improve the Aged Care Quality and Safety Commission's ICT governance, delivery processes and internal cyber security capability. Combined, approximately AUD 290 million in 2026–27 is directed towards aged care ICT sustainment, governance and cyber capability.
  • The Government will provide AUD 99.5 million over five years from 2026–27 to support child development initiatives, including the development of a National Digital Child Health Record within My Health Record. This commitment sits within a broader pattern across the Budget of accelerating the digitisation of Australia's health record infrastructure.
  • States and Territories will receive AUD 79.2 million over three years from 2026–27 to support implementation of national digital health reforms of public hospitals under the National Health Reform Agreement.

• The Government will provide AUD 210.6 million over eight years from 2025–26 to fast‑track delivery of new national digital health infrastructure linked to the National Health Reform Agreement and Medicare systems.
• In addition, funding is directed to health data access and national data sets, including the National Health Survey, Survey of Disability, Ageing and Carers, maternity data systems, and immunisation data systems.

• The Government will provide AUD 598.3 million over two years from 2026–27 to support continued operation and enhancement of My Health Record, including targeted system improvements to underpin legislative reforms.
• These improvements are tied to the Modernising My Health Record (Sharing by Default) Act 2025, which expands default data-sharing arrangements.
• Additionally, AUD 146.8 million over four years from 2026–27 (and AUD 17.6 million per year ongoing) will be allocated to establish enhanced, expanded and ongoing Medicare integrity capabilities.

• Ongoing investment in national registries, datasets and patient-facing platforms (including immunisation, maternity and fertility-related data systems) confirms a sustained policy emphasis on centralised health data environments.
• The Government announced AUD 39.2 million over five years (and AUD 5.3 million per year ongoing) will be allocated to support health agencies, national datasets and continued access to health data.
• Within this:
  • AUD 2.8 million is to extend the Australian Immunisation Register Gov2Gov data feed;
  • AUD 13.7 million over four years is to be applied for national maternity data systems; and
  • additional funding supports ongoing data collection and regulatory data activities across health agencies.

A copy of the Federal Budget papers can be found here.

Nathan Jones, Special Counsel, and Sarah Koegel, Graduate at Law, have contributed to this legal update.