$144 million upgrade for Indigenous health clinics as PM argues failure on closing the gap is not an option

Dechlan Brennan
Dechlan Brennan Published February 12, 2026 at 7.45am (AWST)

Indigenous health services across Australia will receive upgrades under a new round of federal investment, with the Prime Minister using his annual Closing the Gap address to argue that improving outcomes for First Nations people remains a national priority.

Anthony Albanese is set to announce $144 million to upgrade more than 100 Aboriginal Community Controlled Health Services (ACCHS) in cities and regional areas. The funding forms part of a broader package aimed at strengthening frontline health infrastructure and services.

In his speech, the Prime Minister is expected to say, "Many of these clinics had not seen a dollar of new investment for decades.

"All levels of government will work together to see this funding deliver a change in outcomes."

It was also revealed that the $25 billion funding agreement struck with states and territories last month includes $450 million for Indigenous health, made up of $250 million from the Commonwealth and $200 million from the states.

"Health is an area where the Coalition of Peaks has worked for years to drive a change in government's approach," the PM will say.

"Now all levels of government will work together to see this funding deliver a change in outcomes."

Deputy Lead Convenor of the Coalition of Peaks, Scott Wilson. Image: Mick Tsikas (AAP).

The Coalition of Peaks, which represents more than 80 Aboriginal community-controlled peak bodies, said it is critical that programs are designed and delivered in partnership with ACCOs, which have the knowledge and understanding of their communities' needs.

"We welcome this government's significant and much needed investment in health infrastructure, health workers and programs for Aboriginal and Torres Strait Islander communities," said Scott Wilson, the Deputy Lead Convenor of the Coalition of Peaks.

"Closing the Gap requires genuine partnership, it requires sustainable funding for our organisations, a transformation of the way governments work with Aboriginal and Torres Strait Islander people."

The latest data shows only four of the 19 targets are on track to be met by 2031, with six progressing and four going backwards.

"Based on progress to date, later this year we expect confirmation that the target of 95 per cent of Aboriginal and Torres Strait Islander children enrolled in preschool has been achieved," the PM will say on Thursday.

"There are four areas where progress is stalled, or going backwards.The most urgent is suicide. Suicide shatters families, it tears apart communities."

The government has announced a $13.9 million boost for the 13YARN crisis support line; a crisis counselling service designed and led by First Nations people.

Furthermore, the Low-Cost Essentials Subsidy Scheme will also be expanded, with $27.4 million to lift the cap and reduce prices on 30 essential grocery items across 225 remote stores. An additional $32.7 million will fund freezer equipment for 75 stores to improve food storage during periods when access is cut off.

"This expansion will allow for more Aboriginal and Torres Strait Islander communities to have reliable access to nutritious food and groceries all year around," Mr Wilson said.

"These are important steps towards closing the gap and all governments must continue to support the work of ACCOs nationally in ensuring adequate services and resources are delivered to remote communities all over Australia."

Speaking to ABC TV, the Minister for Indigenous Australians, Malarndirri McCarthy, said Thursday's report release is "about our roadmap going forward and where we've come in the last 12 months".

"I'm pretty pleased with the work that we've been doing,' she said.

"Clearly, we've got more to do, but a lot of the structural changes, even here in the Parliament has been important as part of that, like the changing of estimates, working across Parliament with all parliamentarians to try and work with me on Closing the Gap."

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National Indigenous Times

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