26 March 2025

Funding in the Federal Budget for cheaper medicines will be good for Australians’ health and hip pockets, but the peak body for physicians warns widespread medicine shortages will continue without funding to address them.

The budget also built on the Government’s Future Made in Australia agenda, and Royal Australasian College of Physicians (RACP) President, Professor Jennifer Martin, said locally-made medicines should form a key part of this.

“There are currently more than 400 medicines in shortage in Australia, including intravenous fluids and medicines for diabetes and ADHD,” Professor Martin said.

“At best shortages create an inconvenience and another appointment with the doctor, at worst, patients are rationing their medication or going without, and health systems are spending precious time and resources finding alternatives.

“It was great to see $20 million announced recently for more local manufacturing of intravenous fluids, but we need more of this kind of investment.

“We also need investment in the information and communication systems that keep doctors up-to-date on medicine availability, and it is disappointing that was not contained in this budget. Doctors shouldn’t be forced to make prescribing decisions in the dark.”

Professor Martin said the RACP was also disappointed there was not more in the budget to fix the shortage of medical specialists, and address the health impacts of climate change.

“We saw no incentives for specialists to practice in the rural and regional communities who are crying out for them, nothing on distributing specialists where they are needed most, nor wellbeing incentives to address burnout,” Professor Martin said.

“We also need sufficient funding for the National Health and Climate Strategy to ensure health systems can keep up with health problems caused or exacerbated by extreme heat and disasters.

“This budget contained many good things for our nation’s health system, but more is needed to address medicine shortages, boost the specialist workforce and address the health impacts of climate change."

On other Budget announcements, the RACP welcomes:

• $1.8 billion funding boost to public hospitals – which serve as the training grounds for medical specialists and will boost the future specialist workforce 

• $228.7 million to continue modernising My Health Record and support the digital health reform agenda

• $5.7 million to extend funding to ensure sustainability of Australia’s electronic prescribing infrastructure

• $48.2 million over four years for an additional 100 medical Commonwealth Supported Places (CSPs) per year from 2026, increasing to an additional 150 CSPs per year from 2028

• Uncapping the number of medical CSPs for First Nations students, to support the growth of more First Nations doctors

• $3.5 million to extend the Deadly Choices Program – which focuses on increasing uptake of free annual 715 health assessments by First Nations peoples – until June 2026

• $9.2 million to improve detection, monitoring and management of acute rheumatic fever and rheumatic heart disease in remote communities

• $364.5 million to support people with disability who fall outside the National Disability Insurance Scheme 

• $42.2 million for the National Autism Strategy and Action Plan implementation

• $426.6 million for guaranteed eligibility at least 3 days per week subsidised early childhood education and care – universal access to early childhood care for all 3 year olds has been a key call of the RACP’s Kids Catchup campaign