Funding reforms needed to tackle disparities in health for rural, remote and regional communities

Giovanni Torre
Giovanni Torre Published September 11, 2025 at 4.00pm (AWST)

A recent report from the National Rural Health Alliance paints a troubling picture of escalating disparities in health funding for rural, remote and regional Australians.

Over seven million Australians live in these areas, yet the report revealed individuals living outside major cities now receive $8.35 billion less in health funding, which is equivalent to $1,090 less per person each year; a sizeable increase in the gap identified in the NRHA's report two years ago.

The Australia Physiotherapy Association said it has "continually raised the alarm" over growing geographic health care inequities and the potential consequences of decreased access to supports like physiotherapy in regional and rural communities.

Former APA president, proud Palawa man Scott Willis, told National Indigenous Times the current funding models are making it difficult for rural and remote health services to attract staff.

"The main thing is access to quality care - when it's required, where it's required and by the best practitioner required," he said.

"This report really highlights that (the funding conditions) are going to reduce the access, and one of the reasons is it is going to be really hard to attract health practitioners to rural and remote areas, especially on Country – and Aboriginal and Torres Strait Islander people want to have their care on Country," he said.

"They need to have a coordinated but also flexible funding model which is really something we have spoken about for the past 10 years now, at every forum that we go to. There needs to be state, federal and local level funding models and infrastructure funding to really address that region's issues and demands, and the reasons they can't attract the staff.

"If you can have a flexible funding model between all the jurisdictions I think you're half-way there to actually finding out how to correct the issues at a local level. What happens here in Tasmania doesn't necessarily work in the Northern Territory, and that's an issue at the moment – the funding models are not flexible enough and not coordinated between the different jurisdictions."

The APA said it will continue to advocate for reforms it believes can "revitalise rural health workforces and increase access to critical care for the millions of underserved Australians who need it".

The report from the National Rural Health Alliance can be found online at The Forgotten Health Spend: A Report on the Expenditure Deficit in Rural Australia.

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