Payments System
The National Health Funding Pool was established to receive all Commonwealth (ABF and Block) and State and Territory (ABF only) public hospital funding. The Pool comprises of a Reserve Bank of Australia (RBA) account for each State and Territory, with each State and Territory also having established a State Managed Fund (SMF) to manage Block funding. The Pool and SMF provide a line‑of‑sight mechanism to trace each jurisdiction’s contribution to LHNs and third parties. The balance is paid to States and Territories (including public health, cross border, interest and over deposits).
The figure below highlights the source, types and amount of funding and payments that flowed through the Pool and SMFs in 2023-24. The National Health Reform (NHR) Agreement also allows for additional streams of funding to be paid through the Pool if agreed by Government, as was done in response to COVID-19.
NHR funding occurs when the Commonwealth or States and Territories pay into a State Pool account or SMF. NHR payments occur when the funding is paid out of the State Pool account by the Administrator or is paid out of the SMF by the State or Territory.
Public hospital funding payment flows
