Federal Financial Relations (National Health Reform Payments for 2018-19) Determination 2020

This is a determination (a type of legal instrument made by a Minister) that sets out exactly how much Commonwealth money the Federal Government will give to each Australian state and territory for public hospital funding for the 2018-19 financial year.

What it does:

• Authorises $21.17 billion in total payments to be distributed among the eight states and territories
• The money is paid under the National Health Reform Agreement — the deal between the Commonwealth and states about how public hospitals are funded
• The largest share goes to New South Wales ($6.5 billion) and Victoria ($5.2 billion), reflecting their larger populations

Who it affects:

• State and territory governments — they receive this money to run public hospitals
• Hospital patients — indirectly, as this funding supports public hospital services
• Taxpayers — this is federal revenue being redistributed to the states

Why it matters: This is the legal mechanism that actually transfers the cash. Without this determination, the Commonwealth couldn't legally pay the states their hospital funding for 2018-19. It reflects the 'activity-based funding' model where the Commonwealth contributes roughly 45% of the efficient cost of public hospital services.