Productivity Commission report reveals "nuts" Budget barrier
14 August 2025
The Productivity Commission’s interim report, Delivering quality care more efficiently, released overnight, has highlighted a glaring barrier in the Federal Budget process which hampers investment in prevention, Australia’s peak body for public health says.
“The saying goes that prevention is better than cure, but when it comes to investing in prevention, Australia’s federal budget system is broken,” Adj Prof Terry Slevin, Public Health Association of Australia’s CEO, says.
“Current Federal Budget rules don’t allow for forecasting or consideration of financial and productivity benefits beyond the four-year estimates period.
“That means the long-term benefits that come from preventive health measures are excluded from influencing government decision making. This is nuts.
“As an example, a recent Cancer Council study found that cancer control measures have prevented 230,000 deaths in Australia since the mid-1980s. Consideration of this type of huge, longer-term benefit would be excluded from the current budget planning processes.”
As a part of its inquiry into quality care, the Productivity Commission has recommended reform to establish a national framework for prevention funding.
“The Commission’s work presents an opportunity to collaborate on creating a mechanism to fix the system,” Prof Slevin says.
“Our formal response to the Commission will include suggesting a model that assesses and funds preventive health efforts to ensure they’re evidence-based, effective, and ongoing.
“Prevention is a forgotten part of the health funding model, receiving roughly 2-3% of total health spending each year. But there is progress happening.
“Western Australia, for example, has pledged to allocate 5% of their state’s health funding to prevention by 2029. WA also recently established the country’s first Minister for Preventative Health, which we hope other governments will emulate.
“Australia has a Pharmaceutical Benefits Scheme (PBS), and a Medicare Benefits Schedule (MBS), but it lacks what could be called a Public Health Investment Benefits Scheme.
“Investing in public health provides society with multiple benefits, not least of which is helping people stay healthier for longer, and avoiding expensive treatment in our hospitals.
“And the thinking needs to go beyond health. Improving housing, social wage, justice and more also improves lives and prevents disease.
“Investing in prevention is an opportunity to save money in health care costs and increase productivity.
“A ‘better than side benefit’ results in Australians having a greater opportunity for a longer and more fulfilling life, which we reckon is not a bad aspiration.”
For further information/comment:
Paris Lord (he/him), PHAA Communications & Media Manager, 0478 587 917, [email protected]
About us:
We’re Australia's peak body for public health and advocate for the health and wellbeing of everyone. We strive to help prevent – rather than cure – illness and disease. We represent around 2,000 individual members from more than 40 professional groups interested in the promotion of public health. We have branches in every state and territory. Learn more at https://www.phaa.net.au/
Contact details:
Paris Lord (he/him), PHAA Communications & Media Manager, 0478 587 917, [email protected]
