The Australian Government delivered a 2022-23 Budget on Tuesday focused on cost of living issues, with critics claiming it failed to provide adequate investments in a healthcare system under pressure. But the tech sector has welcomed the Government's commitment to developing the nation's digital economy and reinforcing its cyber resilience.

DIGITAL HEALTH

Within the Budget measures, AU$107.2 million ($80 million) is being invested in the Health Delivery Modernisation Program, including new digital services to manage Medicare Complex Care Plans and register Medicare providers.

Services Australia has secured AU$96.8 million ($72 million) for the next phase of its upgrade of the payments systems that support the operation of Medicare and the Pharmaceutical Benefits Scheme.

An additional AU$213.2 million ($159 million) has been earmarked in annual funding for the Australian Digital Health Agency, while AU$32.3 million ($24 million) has been dedicated to the Intergovernmental Agreement on Digital Health with the states and territories, which works towards interoperability within the nation's digital health infrastructure, and delivering improvements to health system quality, safety, accountability, transparency and patient-centred healthcare.

To continue the operation of the data and digital systems underpinning the COVID-19 vaccine rollout, including those enabling the ordering and distribution of vaccines and vaccination appointment booking platforms, AU$66.7 million ($50 million) has been committed.

Almost AU$3 million ($2.24 million) over four years will be directed towards migrating the Australian Institute of Health and Welfare’s data to more secure cloud-based services and off-site data centres, while AU$648.6 million ($485 million) has been contributed towards mental health services, including AU$63.6 million ($47.6 million) on digital tools.

Following the royal commission into aged care, the government will invest AU$345.7 million ($259 million) over four years towards improving medication management in residential aged care facilities through on-site pharmacists and community pharmacy services – a measure designed to complement ongoing implementation of digital capabilities.

In an effort to drive the use of genomics in Australian healthcare, more than AU$28 million ($21 million) will be invested over four years to establish Genomics Australia. A further AU$15 million ($11 million) will go towards a cancer genomics laboratory at the Australian Cancer Research Foundation Cancer Genome Facility.

Permanent universal telehealth is also now entrenched in Australia's health system, with the Government providing an additional AU$512 million ($383 million).

THE REACTION

The Royal Australian College of General Practitioners (RACGP) welcomed the continued commitment to telehealth but warned the Budget failed to address the fall-out of the COVID-19 pandemic and future challenges of a fatigued health system.

"In our submission to the draft [Primary Health Care] 10 Year Plan, we stressed that high-quality care offered by GPs is at risk if substantial reform does not take place. Reform without proper investment is not worth the paper it’s written on," RACGP President Dr Karen Price said.

"General practice is under enormous pressure delivering COVID-19 vaccines and soon we will be doing the same for influenza vaccines. We are helping patients who have delayed or avoided care during the pandemic, including those with mental health issues amidst a looming mental health crisis in Australia."

The Australian Medical Association (AMA) President Dr Omar Khorshid said the Budget's Medicare and hospital funding was "little more" than the usual recurrent spending and planned growth.

"The Budget re-states the Commonwealth will only meet 45 per cent of usual hospital costs, and that the 6.5 per cent cap on hospital funding growth will remain,” Dr Khorshid said.

"Yet hospital Emergency Departments are full, ambulances are ramping, and the AMA estimates the waiting list for essential (elective) surgery has blown out by a further 190,000 surgeries with COVID-19 elective surgery pauses, on top of the existing wait lists."

The Medical Software Industry Association said the government's funding to aged care can be considerably enhanced by digital health technologies.

"The digital health sector is an inherent part of healthcare and innovations available now can revolutionise the aged care sector," MSIA President Rob Best said.

"Technologies offer considerable potential in terms of improving care outcomes, efficiencies and costs by enabling coordinated care and health information sharing."

DIGITAL ECONOMY AND CYBERSECURITY

The technology sector fared well, with the Federal Government contributing another AU$130.1 million ($97 million) over the next four years to help realise its ambition of making Australia a top ten data and digital economy by 2030.

The Australian Signals Directorate will receive AU$9.9 billion ($7.4 million) over the next decade to boost the nation's cybersecurity with a new resilience, effects, defence, space, intelligence, cyber and enablers package (called "REDSPICE"). The "largest ever investment in Australia’s intelligence and cyber capabilities" will see AI and smart technologies enhance the nation's capabilities, and lead to the cyber agency doubling in size to almost 4000 staff over the next ten years. Cybercrime is estimated to have cost Australia up to AU$42 billion ($31 million) last financial year.

In an attempt to accelerate digital adoption, the Government also revealed a "technology investment boost" that will allow small businesses to deduct a further 20 per cent from the cost of cloud services and cybersecurity systems.