ADIA is the peak business organisation representing manufacturers and suppliers of dental products. Our vision is for an industry that empowers oral health professionals to advance the health and wellbeing of all Australians...................... — ADIA Strategic Plan

2016 Budget — Dental care spending

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The 2016 Australian Government Budget altered funding for dental care programmes replacing existing schemes with a new arrangement that exercises a new partnership with the state and territory governments.

Child and Adult Public Dental Scheme —

The Government will invest $1.7 billion over four years, to target dental programmes, by introducing a new Child and Adult Public Dental Scheme. This new approach will introduce national efficient pricing in dental services, along similar lines as activity-based hospitals funding. This will ensure that the program targets those with the greatest dental need, specifically adult concession card holders, as well as children. It will also provide greater long term funding certainty for States and Territories, as well as an increase from an estimated $200 million in 2015-16 to $416 million in 2016-17 in Commonwealth funding for well targeted public dental programmes run by the States and Territories. The budgetary impact of this measure are as set out in the table below and in accordance with convention a saving / reduction is denoted as negative (-) expenditure.

2015-16 2016-17 2017-18 2018-19 2019-20
...Department of Human Services
$4.1Mi. -$14.4Mil -$14.6Mil -$16.7Mil -$14.8Mil
...Department of Health -$46.2Mil -$35.9Mil -$18.1Mil -$137.2Mil
...Total — Expense $4.1Mil -$60.6Mil -$50.5Mil -$32.7Mil -122.4Mil

In terms of outlays the Australian Government's funding commitments are set out below; however, state allocations are yet to be finalised:

2015-16 2016-17 2017-18 2018-19 2019-20
...Adult public dental services...
$155.0Mil
...Child and adult public dental scheme $415.6Mil $415.6Mil $420.2Mil $437.5Mil
...Total — Expense $155.0Mil $415.6Mil $416.5Mil $420.2Mi. $437.5Mil

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The Government will provide 40 per cent of the national efficient price for all dental services provided under the Scheme, with the states providing the remaining 60 per cent. After an initial transition period, growth in Commonwealth Government funding from 2019‑20 will be capped in line with growth in the Consumer Price Index and population.

The cost of the National Partnership Agreement (NPA) will be offset by terminating the Child Dental Benefits Schedule and the NPA for Adult Public Dental Services from 2016‑17. Some savings from these two programmes have already been included in the forward estimates.

This update was issued on 3 May 2016 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy (including passage of the supporting legislation through the parliament) and also compliance obligations. It is recommended that expert advice be sought before taking action based upon the information presented here.

Member Engagement —

ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to the Association's work to ensure that the initiatives within the 2016 Australian Government budget support the dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-BAC Business Affairs Committee.

Further Information —

To keep up to date with how ADIA is working to ensure that the Australian Government budget supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at www.facebook.com/dental.industry. Alternatively, you can contact the Association via email at canberra@adia.org.au or by telephone on 1300 943 094.


This information is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

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