Healthcare spending is set to be high up the agenda for prime minister Kevin Rudd in the upcoming election.
Mr Rudd has given one of his strongest indications to date that he intends to change the way Australian tax and other money is put to use to meet healthcare demands.
He suggested that state governments will be "overwhelmed" by rising health spending in the future.
"Without reform, states' ability to provide the services they currently provide will be significantly strained," he added, in his speech at an Australia Day address at the Sydney Museum of Contemporary Art.
His comments come after the chairman of the Australian tax review Ken Henry indicated that older people will begin to cost the economy more in the future, "especially in health and aged care services".
Mr Henry added that he would like to see a tax system to help meet these "substantially larger fiscal costs."
Mr Rudd has given one of his strongest indications to date that he intends to change the way Australian tax and other money is put to use to meet healthcare demands.
He suggested that state governments will be "overwhelmed" by rising health spending in the future.
"Without reform, states' ability to provide the services they currently provide will be significantly strained," he added, in his speech at an Australia Day address at the Sydney Museum of Contemporary Art.
His comments come after the chairman of the Australian tax review Ken Henry indicated that older people will begin to cost the economy more in the future, "especially in health and aged care services".
Mr Henry added that he would like to see a tax system to help meet these "substantially larger fiscal costs."
