Prime Minister Scott Morrison arrives to the Council of Australian Governments (COAG) meeting in Adelaide, Wednesday, 12 December 2018. (AAP Image/Kelly Barnes)
Prime Minister Scott Morrison arrives to the Council of Australian Governments (COAG) meeting in Adelaide, Wednesday, 12 December 2018. (AAP Image/Kelly Barnes)

Major $1.25 billion health fund announced

A $1.25 BILLION health fund - targeting mental illness, drug addiction and regional cancer patients - will be unveiled today by Scott Morrison.

Doubling-down on his key election pitch that the ­Coalition's good economic management pays for more essential services, the Prime Minister will outline a new community health and ­hospital program that tackles some of the most heart-wrenching illnesses affecting so many Australians.

The new money and plan, to be handed to premiers ahead the Commonwealth of Australian Governments meeting, will top up already ­record funding for health, but how it will be spent will be driven by states and clinicians on the ground.

About $250 million will be spent within the next six months, ramping up to $400 million within four years.

The extra help will be split by population growth, meaning Queensland will get several hundred million dollars more.

Labor has its own top-up plan of $2.8 billion, but it is spread over seven years.

Mr Morrison has heard horror stories from voters who tell of painfully watching loved ones struggling to navigate the mental health system, and he has been told by broken parents how their children are being stolen by illicit drugs.

One of the most common issues raised with Government MPs is the scourge of ice.

"We will deliver more doctors, more nurses and more health services into every state and territory,'' Mr Morrison said. "This is the tangible benefit of a strong economy and it's why I am so committed to keeping our economy strong.

It comes as the Government prepares to hand down its Mid-Year Economic and Fiscal Outlook on Monday.

The Courier-Mail understands that MYEFO will reveal a significantly shrinking deficit because of strong tax receipts from business, a healthy mining sector, more people in work and lower ­government payments.