Scott Morrison will spend an extra $1.25 billion on cancer treatment, chronic disease programs and mental health as he tries to neutralise a potent Labor attack over cuts to hospitals and public health.
The prime minister pitched his plan to the states and territories during his first Council of Australian Governments meeting on Wednesday.
But Mr Morrison's push to cut migration suffered a blow when his own population adviser told the meeting migration levels should stay where they are, and a big infrastructure build was needed instead.
The coalition's health program is about $500 million more over four years than Labor's proposed "Better Hospitals" fund.
"We are investing more in health and hospitals than at any other time and this is the best set of funding that any premiers have ever seen," Mr Morrison told reporters in Adelaide.
But Opposition Leader Bill Shorten said the government had ripped $4 billion from hospitals over the past five years, and was only putting a fraction of the money back in ahead of the next election.
"The Australian people remember the cuts, they want better from their governments in health care," Mr Shorten said.
Projects covered under Mr Morrison's scheme include specialist services such as cancer treatment, rural health infrastructure, drug and alcohol treatment, disease management and mental health.
Victorian Labor Premier Daniel Andrews welcomed the additional funding but stressed it needed to be put in context of some "pretty savage" cuts.
Mr Andrews said $2 billion in federal funding had been slashed from Victoria's health system under the federal coalition government.
"Yes $1.25 billion in extra funding is good but we should put it in the context of some very big cutbacks we've seen to health and hospital funding - and therefore health and hospital services - made by the now Morrison minority government over the last five years," he told ABC radio.
"Putting a little bit more back in, that's welcome, but it doesn't fix the sort of damage that's been done by the federal Liberal-Nationals government."
The cash injection comes as the Commonwealth tries to convince Victoria and Queensland to sign onto a new hospital funding deal.
The Labor states are refusing to ink the national agreement, arguing it does not offer enough new cash.
Mr Morrison is also working with the states and territories to thrash out a new population policy and shift more people from the big cities to the bush.
NSW has led the push for fewer migrants, but most other states and territories want more migrants and more infrastructure spending.
Lifeline 13 11 14
beyondblue 1300 22 4636
Australian Associated Press
