My question is to the Minister representing the Prime Minister, Senator Wong. I refer to the Prime Minister's correspondence to the states and territories where he demanded that they 'reduce growth in hospital activity and costs' to receive additional Commonwealth funding. Minister, which services does the Prime Minister think the states and territories should cut, and which patients should miss out on care?

We are continuing to negotiate in good faith with the states, and I think Australians do want the states and the Commonwealth to work together to improve hospitals and strengthen Medicare. We are on the record as indicating we have made an offer of an additional $20 billion in hospital funding for the states, on top of record funding this year. We want to work with the states to finalise the National Cabinet agreement that they signed up to in December 2023, and we have put a very serious offer on the table. An extra $20 billion over five years would bring the total Commonwealth funding to public hospitals expected over the new five years to a record $215 billion. We'll continue to negotiate in good faith. We will do our part—

Minister, please resume your seat. Senator Ruston.

On direct relevance, my question went specifically to a letter that the Prime Minister sent to the states and territories seeking to have them reduce funding in public hospitals. I was wondering if the minister might go to that.

The minister is being relevant to your question, Senator Ruston.

The correspondence that you refer to involved precisely the negotiation that I'm describing and precisely the offer of an additional $20 billion that I'm referencing, so it is entirely relevant. What I was going to go on to say is that we will do our part by contributing to increased activity and increased funding. Obviously, the states do have to play their part too, to make sure their health systems are efficient and well run. As I said, we'll continue to negotiate in good faith. We've put a substantial additional contribution on the table, and we look forward to the states continuing to engage with the Commonwealth in good faith.

Senator Ruston, first supplementary?

Minister, last year only 802 new aged-care beds were delivered, despite the need for more than 10,000 every year for the next 10 years. This left thousands of older Australians in hospitals waiting for an aged-care bed. Why is the Prime Minister asking the states to cut hospital budgets instead of ensuring medically fit older Australians can leave hospital?

Thank you to Senator Ruston for the question. You're right, Senator: people should be able to access quality aged care, and we know that, in a situation where aged-care services are insufficient, there is pressure on the public hospital regime. I would remind you, Senator, that you were part of a government whose management of aged care was described in one word by the royal commission as 'neglect'. Now we are working—

Minister Wong, please resume your seat. Senator Ruston?

Once again, on relevance, I'm actually talking about the last 12 months, not something that happened five years ago.

The minister is being relevant to your question, Senator Ruston.

Senator, you are one of the people in this place who do understand these issues, and you would know that the consequences of the cutting of $2.5 billion from aged care by the government of which you were a part have been long lasting. It is the case that we want to have more aged-care beds. It is the case that governments know that, if you don't have sufficient support for older Australians, it does put pressure on public hospitals— (Time expired)

Senator Ruston, second supplementary?

Going to your answer to the first question, could I ask: does the Prime Minister stand by his clear and unconditional commitment to fund 42.5 per cent of hospital funding by 2030, and, if not, what will your government's hospital funding contribution be by 2030?

As I said, I think in my first answer, we do want to finalise the agreement that all governments signed up to in December 2023. National Cabinet did agree that increasing the Commonwealth share of public hospital funding would be subject to a reasonable limit on the annual growth in costs—I think the states understand this. That is the best way to ensure we keep our public health system efficient, affordable and strong. We put a very serious offer on the table, and we'll keep working with the states.