The federal government has agreed to a three-year extension of its GST revenue guarantee with the states and territories as well as a package of health and disability reforms.
Following a meeting with the nation's premiers and chief ministers, including ACT leader Andrew Barr, Prime Minister Anthony Albanese announced that the multi-billion dollar guarantee, which was due to expire in 2026-27, will be now be extended to the end of 2029-30.
Mr Albanese said the deal would ensure that "GST proceeds are shared fairly and equitably and, importantly, is safeguarding service delivery".
The states and territories had been pushing for the Commonwealth to deliver a no-worse-off guarantee on GST funding in perpetuity.
But in the lead-up to the meeting, Treasurer Jim Chalmers said the cost of the current arrangement had blown out from $6.7 billion to $33.9 billion and there would not be a deal "at any cost".
Speaking afterwards, Dr Chalmers said the three-year extension was "a very positive outcome".
"We've come together, recognising the pressure on all our budgets, and we've come to an agreement that works for everyone," he said.
The GST revenue deal, which safeguards the share Western Australia gets, is sensitive for both sides of politics because of the importance of seats in the westernmost state.
The meeting of National Cabinet in Canberra also agreed to $1.2 billion package of measures aimed at boosting the health workforce, increasing Medicare Urgent Care Clinic funding and helping older patients avoid hospital admissions or shorten their stays. The meeting also set the parameters for the next two five-year health agreements.
The Prime Minister said the health measures agreed to would "support our health workforce while reducing unnecessary presentations to emergency departments".
"Australians want an approach to health care that recognises that primary care and hospital care are linked and that we need to strengthen primary care in order to take pressure off hospitals," he said, adding that the health agreement deal would give the states and territories certainty in their delivery of health services.
"These reforms will make a very significant difference to the health care that Australians need and deserve," the Prime Minister said.
One of the biggest issues to be discussed by national cabinet was reform of the National Disability Insurance Scheme.
The cost of the scheme has blown out and the federal government wants to cut back its rate of growth from 14 to 8 per cent and secure a greater contribution from the states and territories.
Mr Albanese said the meeting acknowledged the need for reform and agreed to a doubling in the contribution from the states and territories from the current 4 per cent to a cap of 8 per cent, with the Commonwealth to fund any growth beyond that.
National cabinet agreed to work together to implement legislative and other changes to the NDIS to "improve the experience of participants and restore the original intent of the scheme to support people with permanent and significant disability," the Prime Minister said.
"What we want to do, though, is to make sure that the principles on which the NDIS was established, that those people who need that support, continue to get it. But for others it might be that they don't need the full NDIS scheme into the future."
National cabinet also agreed to establish a National Firearms Register have it fully operational within four years.