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Queensland Health posts record $960m deficit

Queensland's public health system has recorded its worst financial result on record, with a near-$1 billion deficit driven by population growth, rising costs and ageing infrastructure. The Queensland Audit Office says Queensland Health and the state's 16 hospital and health services posted a combined $960.6 million deficit in 2024-25, up from $14.1 million the year before.

 

January 21, 2026
21 January 2026

Queensland's public health system has recorded its worst financial result on record, with a near-$1 billion deficit driven by population growth, rising costs and ageing infrastructure.

The Queensland Audit Office says Queensland Health and the state's 16 hospital and health services posted a combined $960.6 million deficit in 2024-25, up from $14.1 million the year before.

Auditors described the result as a "significant deterioration", exceeding financial pressures seen during the COVID-19 pandemic.

The report cites strong population growth, an ageing population and higher employee, supply and maintenance costs, with health service delivery increasing by 11.7 per cent during the year. Staff numbers rose 5.6 per cent, while Queensland Treasury provided $800 million to manage cash-flow pressures.

Deferred maintenance across Queensland Health's $19 billion asset base climbed to $2.6 billion, forcing some hospitals to delay treatment or divert patients due to infrastructure failures.

Auditor-General Rachel Vagg warned costs would continue rising as Queenslanders aged 65 and over are projected to exceed 1.3 million by 2036.

Health Minister Tim Nicholls blamed the former Labor government for leaving health infrastructure "on life support", while Labor said the LNP was mismanaging hospital projects and budgets.

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