Billions will be spent on helping Australia to prepare for a predicted COVID-19 surge this winter, while out-of-pocket prescription costs will also be reduced for more than two million people.
The 2022/23 federal budget revealed $6 billion has been set aside for a winter response plan, with a combined COVID-19 and influenza spike in infections predicted in coming months.
A further $1 billion will be spent on extending the COVID-19 vaccine rollout, as people prepare to receive their second booster dose, while $546 million will go towards extending the Medicare Benefits Schedule for pathology items used for COVID testing.
More than $132 billion has been allocated to health spending in the upcoming financial year, with $537 billion to be spent in the area over the next four years.
Money has already been set aside to help develop mRNA vaccines in Australia through a partnership with pharmaceutical giant Moderna.
Spending on Medicare will rise by $7.3 billion compared to the last budget to $31.4 billion in 2022/23, with $368 million in additional funding over five years.
The Pharmaceutical Benefits Scheme safety net threshold will also be reduced for more than 2.4 million people.
From July 1, the threshold will lower from $1542.10 to $1457.10 for general patients and from $326.40 to $244.80 for concession card holders.
As a result of the changes, concessional patients will reach the threshold with 12 fewer prescriptions each year, while general patients will reach it with two fewer scripts per year.
An extra $2.4 billion will be spent on creating and amending listings on the PBS, which will include treatment for conditions such as breast cancer, cystic fibrosis, asthma, HIV and heart failure.
Suicide prevention will also be targeted with $547 million in new investments, focusing on young people, Indigenous Australians and people from multicultural communities.
Almost $100 million will go towards mental health initiatives, including Lifeline support.
There will be $63.5 million set aside for cancer research, supporting specialist facilities, $32.3 million be provided to support digital health programs.
Australia will soon get a National Allergy Council and a national register for anaphylaxis, with almost $27 million set aside over the next four years.
The budget has forecast that COVID-19 community transmission will continue, with a predicted new Omicron wave expected to see increased rates of absenteeism and put pressure on supply chains.
Intermittent Omicron waves are also predicted to occur beyond winter, but high vaccination rates are expected to lessen the potential impact.
While public health measures such as density limits and physical distancing are expected to be phased out, the budget has forecast such measures could be reimposed in a targeted way as a response to future outbreaks.