For the past few years, a growing problem has put healthcare budgets under increasing stress.
State and territory governments have been trying to do more with less, and it is all starting to come apart at the seams.
Extra money for healthcare during the pandemic hid the problem for a while. But, with those emergency sources of revenue gone, the states face funding shortfalls, and it is everyday Australians who are suffering as a result.
Overcrowded hospital waiting rooms. People waiting years in pain for hip replacements. People delaying appointments because of the cost, which then means issues are not picked up early.
Source of the problem probably not what you think
But this is not all doom and gloom. There is the real possibility of meaningful change.
The problem is that the GST is failing. The GST was created as a state tax, collected by the Commonwealth government, but then transferred in full to the state and territories.
It was promised to be the states’ own growth tax, which would help them fund their spending responsibilities, the biggest of which was healthcare.
But over the past 25 years since its introduction, it hasn’t grown with the economy.