The Federal Budget invests $1.3 billion over six years in initiatives to improve the lives of First Nations people, according to Budget papers.
It prioritises investment in economic empowerment, food security, health and wellbeing and a long-term commitment to strengthen service delivery in remote First Nations communities in the Northern Territory, the papers say.
Statements from Gayaa Dhuwi (Proud Spirit) Australia, the Australian Indigenous Doctors Association, First Peoples Disability Network, Victorian Aboriginal Legal Service (VALS), National Aboriginal and Torres Strait Islander Legal Services, the Coalition of Peaks, and National Aboriginal Community Controlled Health Organisation (NACCHO) follow below, and other commentary will be added.
Mental health and suicide prevention forgotten
Gayaa Dhuwi (Proud Spirit) Australia
While Gayaa Dhuwi (Proud Spirit) Australia welcomes the 2025-2026 Federal Budget, it is disappointed to see that it didn’t include a sustained commitment to social and emotional wellbeing, mental health, and suicide prevention across Aboriginal and Torres Strait Islander communities.
As reflected in the Productivity Commission’s review of the National Agreement on Closing the Gap, the Australian Government needs to better engage with Aboriginal and Torres Strait Islander peoples and ensure adequate resourcing for the implementation of the Agreement and its outcomes.
Gayaa Dhuwi advocates for every federal budget to have specific funding for social and emotional wellbeing, mental health, and suicide prevention for Aboriginal and Torres Strait Islander peoples.
“There should never be a budget without consideration of mental health funding,” said Professor Helen Milroy AM, Chair of Gayaa Dhuwi.
“Consistent and sustainable funding of Australia’s mental health system is vital for achieving the highest attainable standards of social and emotional wellbeing, mental health, and suicide prevention outcomes for our people,” she continued.
Gayaa Dhuwi calls for the Australian Government to show its commitment to improving access to mental health services for all Australians, something sorely missing from this year’s budget.
Gayaa Dhuwi stands with members of the mental health and suicide prevention sector in acknowledging that Australians are currently facing enormous pressures on our collective mental health and wellbeing, and the Australian Government is not doing enough to improve access to mental health supports.
“Aboriginal and Torres Strait Islander peoples should have every opportunity to live happy and fulfilling lives. Instead, too many of our families are struggling with mental ill health, feeling the continued grief and trauma associated with colonisation,” said Gayaa Dhuwi Chief Executive Officer, Ms Rachel Fishlock.
“It is a public health crisis that must be addressed by the Australian Government”, she continued.
Gayaa Dhuwi reminds the public and media outlets of the importance of responsible and culturally respectful reporting when it comes to issues affecting Aboriginal and Torres Strait Islander communities. This includes adhering to the Good Yarn Guidelines and ensuring that crisis support services are promoted effectively.
- 24/7 crisis helpline services available to the community include:
- 13 YARN (139276) – a dedicated support line for Aboriginal and Torres Strait Islander people
- Brother to Brother crisis line (1800 435 799) – providing support for men
- Kids Helpline (1800 55 1800) – for young people in need of support
- For further information, and resources, or to access support services, please visit www.gayaadhuwi.org.au.
Welcome investments, and calls to action
Australian Indigenous Doctors Association
The commitment to significantly increase funding for bulk billing access in the federal budget is welcomed by the Australian Indigenous Doctors Association (AIDA). As the national peak body for Aboriginal and Torres Strait Islander doctors and medical students across Australia, AIDA acknowledges this major investment will potentially service areas in need with more access to GP bulk-billed care.
“Primary healthcare is a fundamental right, and improved access for First Nations people across Australia is critical to improved health outcomes,” Dr Jonathan Newchurch, AIDA President said.
“However, it is important to acknowledge that the changes advantage shorter consultations, therefore AIDA cautions that this does not cause a disincentive for longer consultations, which are fundamental for chronic disease and complex care management.”
While it won’t meet the needs and overheads of all GP practice types, we recognise this is significant progress and welcome the prioritisation of primary health care services in the budget.
AIDA also welcomes another $689 million pledged from January 2026 to reduce the maximum cost of many medicines.
“Australia’s Pharmaceutical Benefit Scheme is a crucial component of our universal healthcare system, and we are pleased to see it will continue to provide even more affordable access to essential treatments, at no more than $25 for a PBS medicine,” said Dr Newchurch.
The commitment to increase the number of medical places at universities focused on primary healthcare is also a welcome priority.
With an additional 100 medical Commonwealth Supported Places per year from 2026, increasing to 150 per year by 2028, and demand driven places for First Nations students to study medicine ($48.4 million).
Our Indigenous medical workforce is such a valuable asset to the healthcare system, they bring a unique understanding that all of Australia can benefit from, particularly Indigenous people.
Nonetheless this funding will not directly address the significant disparity between the number of First Nations students entering medicine (4.2%) versus those graduating (below parity at 2.3%).
Similarly, AIDA acknowledges the $37 million for upgrades to potable water supply in the Torres Strait. Energy poverty and access to drinking water are some of the social determinants of health that disproportionately impact Aboriginal and Torres Strait Islander peoples’ health and wellbeing.
AIDA also welcomes the $9.2 million over three years to states and territories to deliver improved monitoring and detection of Acute Rheumatic Fever and Rheumatic Heart Disease and provide education and training for healthcare providers, individuals, families and Communities.
There are direct impacts and worsening health outcomes as a result of climate change and inadequate housing. Preventative measures are needed to address these real and significant issues that affect the wellbeing of First Nations people on a daily basis.
Additionally, the $3.5 million to extend the preventative health program, Deadly Choices will contribute to the uptake of ‘715 Health Checks’. This investment in preventative and primary care focusing on key areas of risk, including early detection of common and treatable conditions, will help to address major contributors to First Nations illness.
While AIDA welcomes these support measures to improve access to primary healthcare and medicines for Aboriginal and Torres Strait Islander peoples, only five of the 19 Close The Gap targets are on track to be met, while six are improving.
AIDA urges governments to address the social, economic and political determinants of health with more effort and intensity.
For more than 25 years, AIDA has been committed to working with governments to ensure that Aboriginal and Torres Strait Islander doctors are not only increasing in numbers but thriving in the health system to ensure best outcomes in Indigenous health and health across Australia.
AIDA’s vision is that Aboriginal and Torres Strait Islander people have self-determination, and are empowered to promote the strength of First Nations led-solutions, to improve health outcomes for our people.
Much more needed
First Peoples Disability Network
First Peoples Disability Network (FPDN) welcomes the $365.4M commitment to foundational support through the Information, Linkages and Capacity Building Program (ILC), but specific measures to ensure that they are culturally responsive need to be embedded in the implementation of those supports.
However, we are very disappointed to see that there are no significant new advancements or commitments to First Nations Peoples with disability and this tells us that some of the most vulnerable people in our community continue to be overlooked year after year.
“By any measure First Nations Peoples with disability remain some of the most disadvantaged Australians, this is because they often face discrimination based upon their Indigeneity and disability,” says Damian Griffis, FPDN CEO.
Whilst there were continued commitments as promised, the disproportionate impact of disability on First Nations Peoples requires significant and authentic long-term investment, supporting empowerment and self-determination and the government plans for foundational supports to take on functions outside of the NDIS, there is a significant risk that First Nations Peoples will fall through the gaps yet again. There is simply not enough information about the form that foundational supports will take and how they will meet the needs of our communities.
“More needs to be done urgently to design appropriate supports for First Nations Peoples with disability in partnership with the First Peoples Disability Network, the national peak organisation of and for First Nations Peoples with disability.” Says Mr Griffis.
Considering the recent Budget announcement, FPDN calls on the government to make solid financial commitments to the progress of all 13 recommendations in the Disability Royal Commission’s Final Report – Volume 9, relating to First Nations Peoples with a disability.
The measures which support disability advocacy, and the NDIS appeals process are important for the operation of Australia’s disability services, but revised forecasts of NDIS growth are very concerning, given the wide reliance on the NDIS system and the lack of detail in how those savings will be achieved.
FPDN also requests that the government to clarify that those revisions will not impact the safety, quality and availability of NDIS services for First Nations people, who already access the scheme at far lower levels than the rest of the disability community.
“A new low”
Victorian Aboriginal Legal Service
Last night’s budget shows where on the priority list Aboriginal peoples are. Prime Minister Albanese is pursuing popular votes for the upcoming election, rather than showing leadership on the issues that affect us, and for the generations to come. It is clear that our people’s vote doesn’t matter, so the federal budget has remained largely silent on the issues that impact Aboriginal peoples in Victoria.
With only four of the 19 National Agreement Closing the Gap targets on track to being achieved by their deadline, the Federal Government’s 2025-26 Budget is further proof of its negligence towards the wellbeing and safety of Aboriginal and Torres Strait Islander people, particularly women and children.
In Victoria, while the Allan Labor Government boasted about its tough new bail laws, the Productivity Commission reported that Victoria was on track to meet targets 10 and 11 relating to incarceration of adults and young people.
We anticipate, however, as these new bail laws come into effect today, the numbers of Aboriginal people on remand will increase dramatically. VALS’ core funding, as confirmed by the National Access to Justice Partnership will not meet this increased community need for legal assistance.
Victoria has the highest rates of Aboriginal children being removed from their families in the country. Prioritising the safety of children and young people means investing in Aboriginal-led early intervention, preventative, community-based services and programs that actually work in supporting children and their families as well as addressing offending behaviour early. This is how our children can be set up for the best possible chance in life.
Across all jurisdictions, we are seeing regressive policies being implemented that go directly against the rhetoric of safety of children and young people, and show no regard for Aboriginal peoples’ lives.
The recent Senate Inquiry into Australia’s Youth Justice and Incarceration System provides further proof that Federal Government are choosing not to invest in alternative support models for children and young people.
The national crisis of violence against women continues, while we commend the government’s investment in services for Aboriginal women and children, we call for Victorian ACCOs delivering specialist family violence supports, including legal assistance to receive a proportionate allocation of this investment. We are gravely concerned around the rates of misidentification of Aboriginal women as the user of violence. VALS supports Aboriginal women experiencing family violence through many of our legal and non-legal service offerings including our Criminal Law, Aboriginal Families, and our Civil and Human Rights Practice alongside our Baggarrook Transitional Housing support program.
It speaks volumes where a government invests almost 200 per cent more in schemes to support home ownership than they do in providing public and social housing. We need a government that doesn’t prioritise individual wealth over the basic human right of having a home, for all Australians. Baggarrook supports Aboriginal women leaving prison, all our clients to date have experienced family violence. We have been calling to expand this program for men and young people too so we can support our community return to their families, and connect with their culture in a supported environment.
Lastly, we acknowledge the investment in Pharmaceutical Benefits Scheme (PBS) and the benefits this will provide, we are deeply troubled that our calls to ensure that anyone who is incarcerated has access to the PBS and Medicare, has again been ignored. Numerous coronial inquests have highlighted the need for equivalency of healthcare in prisons and this budget represents yet another missed opportunity to work towards mitigating preventable harm while in custody.
Nerita Waight, CEO of the Victorian Aboriginal Legal Service said:
“For the Prime Minister to come out in support of the new bail laws in Victoria is a new low. Incarceration numbers will only increase, no government can sit back and make spineless commitments to close the gap whilst also supporting laws that we know will discriminate against Aboriginal people, and has removed incarceration as a last resort, a protected human right for children.”
“Everyone has a right to a safe and accessible home, the government’s focus on home ownership shows a complete disregard for their duty to provide public and social housing.
“Last night’s budget leaves a lot to be desired when it comes to investing in measures that will help us reach Closing the Gap targets. We will continue to hold governments to account when they pay lip service to Aboriginal self-determination. This Federal Budget isn’t even worthy of a glance by Victorian Aboriginal Communities.”
Undermining justice, perpetuating inequality
National Aboriginal and Torres Strait Islander Legal Services
The 2025-26 Federal Budget ignores repeated, urgent calls for critical funding for Aboriginal and Torres Strait Islander Legal Services, undermining access to justice and perpetuating inequality.
Karly Warner, Chair of NATSILS says, “Governments across the country are advancing policies that drive the mass incarceration of Aboriginal and Torres Strait Islander peoples, the removal of children, and are not funding the reciprocal increase in demand for people to access high quality, culturally safe and holistic legal help.
“Aboriginal and Torres Strait Islander people go to jail for crimes that others don’t. Their children are removed for risk factors that others aren’t. They are pushed into negative contact with justice systems due to things like being misidentified as perpetrators of violence, social need, and systemic racism. They must get the legal assistance they deserve.
“The current funding for Aboriginal and Torres Strait Islander Legal Services is insufficient to cover rising costs, despite investment under the National Access to Justice Partnership and commitments flowing from the National Agreement on Closing the Gap.
“As a result services have been forced to turn away clients, to impose service freezes and to forego the wrap around support for individuals that will prevent contact with justice systems in the first place.
“Aboriginal and Torres Strait Islander peoples have the highest legal needs of any group in Australia, and face structural bias at every stage of the legal process.
“The failure to provide needs-based funding to Aboriginal and Torres Strait Islander Legal Services leaves our communities without access to justice.
“The continued underfunding of Aboriginal and Torres Strait Islander Legal Services, along with the growing national trend of state and territory governments imposing dangerous new laws that drive incarceration, increase legal need, and tear families apart is a disaster that governments can fix but, so far, haven’t.”
Cause for cautious optimism
The Coalition of Peaks
The Federal Budget’s $8.5b Medicare package and investments in early childhood, education and family safety will support Aboriginal and Torres Strait Islander people and strengthen Aboriginal and Torres Strait Islander community-controlled organisations, their peak body has said.
Coalition Peaks Lead Convenor, Pat Turner AM, said these budget measures signal the Government’s intent to deepen its commitment to Closing the Gap and invest in stronger partnerships with the Aboriginal and Torres Strait Islander community-controlled sector.
“This Budget gives us cause for cautious optimism. Investment across all sectors where our Aboriginal and Torres Strait Islander community-controlled services are is important – and we look forward to working with all governments, in genuine partnership, on how those investments are designed, governed and delivered,” Ms Turner said.
Key announcements in areas such as mental health, early childhood development, economic participation, data sovereignty and infrastructure reflect a growing recognition of what is required to achieve long-term structural change.
“We’ve seen what’s possible when governments work with us, not around us,” Ms Turner said.
“The Department of Health and Aged Care has shown, time and again, what genuine partnership looks like – in workforce, suicide prevention, and maternal health. These aren’t just policy wins – they’re proof. That when Aboriginal and Torres Strait Islander people lead, outcomes improve.”
The Coalition of Peaks represents more than 80 Aboriginal and Torres Strait Islander community-controlled peak organisations.
Together with governments, the Peaks are implementing the National Agreement on Closing the Gap – a landmark agreement built around four Priority Reforms aimed at changing how governments work with Aboriginal and Torres Strait Islander people.
“These reforms were never just about new programs. They are about shifting power – through shared decision-making, by strengthening our community-controlled sector, and through greater access to data and accountability,” Ms Turner said.
She emphasised that these investments are not only good policy – they’re also smart economics.
“Every dollar invested in Aboriginal community-controlled organisations delivers better value. It drives stronger outcomes for our people, builds local economies, and makes public spending more effective – because the work is done with community, not to community.”
As part of the first-ever Aboriginal and Torres Strait Islander-led review of the National Agreement, the Coalition of Peaks is inviting community voices to help shape the future. Find out more here.
Some good news
The National Aboriginal Community Controlled Health Organisation (NACCHO)
The National Aboriginal Community Controlled Health Organisation (NACCHO) is pleased to hear of measures which should have a positive effect on Aboriginal and Torres Strait Islander health.
The Chair of NACCHO, Donnella Mills, speaking in Melbourne this evening said, “We knew what was coming for our sector from the announcements related to the $842m package (over six years) that the Government negotiated with our colleagues at APONT in the Northern Territory.
“And we were also aware of some injections of funding in critical programs such as rheumatic heart disease (RHD). There is also funding for the Coalition of Peaks, which we are pleased to see. These are welcome announcements.”
In Canberra tonight, Pat Turner, the CEO of NACCHO said, “The big thing for our sector in this Budget is the increased access to Medicare and the PBS.
“The $8.5b Medicare package will not only help our ACCHOs, but the better access to bulkbilling and medicines will directly benefit the half a million or so Aboriginal and Torres Strait Islander people who access our 550 clinics. It was also pleasing to hear that the Coalition supports this critical announcement.”
Notwithstanding the measures in tonight’s Budget, more needs to be done if we are serious about closing the health gap. NACCHO has been working with the Department of Health for over seven years on a new funding model for the ACCHO sector.
Currently, most of the funding is tied to historical decisions, which can no longer be justified. So, we are on the cusp of instituting a new and fairer model which represents the best chance we have had in a generation to deliver real reform.
Donnella Mills said, “We just need to have it properly funded. In all other respects, it is ready to go. So, NACCHO calls upon both political parties and the crossbenchers to include this tested model as a key plank in their election platforms.”
It could also be used as a practical means of restarting reconciliation after the 2023 Referendum. In a time of economic volatility, it also offers a means of rejuvenating the 550 local economies in which our ACCHOs run clinics.
Investing in ACCHOs helps creates jobs across what is the most comprehensive servicing footprint in Australia.
Pat Turner said “The ACCHO model is proven to be more efficient and cost-effective than mainstream health services for our people. It needs further investment if we are to ever close the health gap.”
Note from Croakey: The headline on this article was amended after publication
Budget documents
- Federal Budget papers are here
- Treasurer’s Budget speech is here
- Budget paper No 2 is here
- Department of Health and Aged Care stakeholder pack is here
- Women’s Budget Statement is here
- Health and Aged Care Minister Mark Butler’s statement is here.
See Croakey’s articles on the 2025-2026 Federal Budget
