Indigenous Australians’ Health Programme Primary Health Care Funding Model

Page last updated: 19 November 2019

In 2014-15, the Australian Government committed to developing a new funding model for Indigenous primary health care (PHC) grant funding under the Indigenous Australians’ Health Programme (IAHP). The purpose of the funding model is to ensure primary health care funding is distributed fairly and transparently to deliver improved health outcomes for Aboriginal and Torres Strait Islander people.

A better funding model for Indigenous Health

On 1 July 2020, a revised funding model to distribute primary health care funding under the IAHP will be implemented for eligible Aboriginal Community Controlled Health Services (ACCHS) delivering comprehensive primary health care.

The Department has been working closely with key stakeholders via the Comprehensive Primary Health Care Sustainability Advisory Committee, which includes representatives from the National Aboriginal Community Controlled Health Organisation, the Australian Medical Association and the Indigenous health sector, to develop a revised funding model.

The initial focus has been the development of a funding model for eligible Aboriginal Community Controlled Health Services (ACCHS) as these services receive the majority of funding for primary health care under the IAHP.

The costs associated with delivery of comprehensive primary health care the ACCHS sector differ significantly in comparison to state and territory health services. From early 2020, the Department of Health will work with key stakeholders to determine how this can be appropriately factored into the model in future for other funded organisations.

The IAHP Primary Health Care Funding Model will deliver the following key benefits to better support and improve the delivery of health services for Aboriginal and Torres Strait Islander people:
  • $90 million additional investment to further support primary health care and targeted to need
  • 3 year funding agreements for greater workforce continuity and planning
  • Annual indexation for all services
  • No service to lose funding – funding levels maintained in real terms
  • Streamlined grant application processes to reduce administrative burden

Next Steps

A direct non-competitive Approach to Market against Grant Opportunity Guidelines for Primary Health Care will open in late 2019. The Department has streamlined the process for the 2020-21 grant round to reduce the administrative burden on funded organisations.

All current services will be approached to submit an application for primary health care funding under the IAHP for service delivery commencing 1 July 2020. As part of this process, service-specific information about the funding allocated through the IAHP Primary Health Care Funding Model will be provided. Organisations are encouraged to register on GrantConnect to apply.

Additional information :


Funding Model Factsheet (PDF 154 KB)
Funding Model Factsheet (Word 50 KB)
Frequently Asked Questions (PDF 159 KB)
Frequently Asked Questions (Word 53 KB)
Technical Factsheet - Funding Model Overview & Calculation Steps (PDF 274 KB)
Technical Factsheet - Funding Model Overview & Calculation Steps (Word 73 KB)
Technical Factsheet - Health Need (PDF 190 KB)
Technical Factsheet - Health Need (Word 48 KB)
Technical Factsheet - Location (PDF 562 KB)
Technical Factsheet - Location (Word 381 KB)
Indigenous Australians’ Health Programme Primary Health Care Funding Model Technical Factsheet (PDF 456 KB)
Indigenous Australians’ Health Programme Primary Health Care Funding Model Technical Factsheet (Word 5530 KB)

How can I get more information?

Please contact IAHPFundingModel@health.gov.au

What is the Indigenous Australians’ Health Programme (IAHP)?

On 1 July 2014, the Australian Government established the IAHP, consolidating four existing funding streams: primary health care; child and maternal health programs; Stronger Futures in the Northern Territory (Health); and programs covered by the Aboriginal and Torres Strait Islander Chronic Disease Fund.

As at the 2019-20 Budget, the Australian Government is investing $4 billion in Indigenous Health over the next four financial years from 2019-20 to 2022-23, an ongoing increase of around 4% per year.

Further information can be found on the IAHP webpage.

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