Prime Minister Anthony Albanese has announced a $2.2 billion healthcare package to support workers, boost nurse numbers and improved after-hours care.

National cabinet endorsed the package when state and territory leaders met Mr Albanese in Brisbane on Friday.

The meeting also discussed the burgeoning National Disability Insurance Scheme. It is poised to become the biggest cost to the federal budget, eclipsing Medicare.

“We need to have a sustainable growth trajectory for the NDIS in order to support equity and fairness for all Australians who are living with disability, including those not eligible for the NDIS and ensure that every dollar goes to those who need it most,” Mr Albanese said.

“We know that the trajectory of NDIS expenditure is just not sustainable into the future.”

He said state and federal governments had agreed to cut NDIS spending, which is projected to cost $97 billion over the “medium term”.

“In 10 years’ time, when you look at the budget framework – and that is simply not sustainable – the growth over the period in between the last budget and October was alone some $8 billion in just those few months,” Mr Albanese said.

“We want to make sure that the promise of the NDIS is fulfilled.”

The cost of the NDIS has been growing at 12-14 per cent a year. Under Friday’s agreement, it will now have an 8 per cent annual growth target.

More than $720 million has been committed to boost the capability of the agency in charge of the scheme to better support participants.

“We need to have a sustainable growth trajectory for the NDIS in order to support equity and fairness for all Australians who are living with disability, including those not eligible for the NDIS,” Mr Albanese said.

In other measures outlined at national cabinet, a patient ID system called MyMedicare will be introduced.

The measures are part of a federal budget package worth more than $2 billion, which also includes support for workers such as paramedics and pharmacists.

Mr Albanese said health would be the main focus for national cabinet for 2023, with reform to be discussed at a meeting in the last quarter of the year.

“One of the things identified is patients who will regularly turn up at emergency departments. We want to make sure that there is registration there so we can reach out,” he said.

While some state leaders, such as Victorian Premier Daniel Andrews, have called for a 50-50 health funding arrangement with the Commonwealth to be extended, Mr Albanese said the Medicare changes would bring practical reform.

“If I said to [leaders] we’re going to provide 50-50, they’d say ‘that’s great but 60-40 would be better from the Commonwealth and 70-30 would be better still’,” he said.

“What we’re discussing here and what the premiers have done is come up with practical outcomes of reform that makes a difference, that recognises that there [are] finite funds from all levels of government.”

State and territory leaders also agreed to support plans for national cabinet to develop reforms for improving the rights of renters.

“What we’re not seeking to do is to be absolutely uniform because different states will have different circumstances, but there are measures and commitments every state and territory is doing something in this area,” Mr Albanese said.

“There are a range of measures that will be considered by state and territory governments to strengthen the system of renters’ rights.”

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Deputy Liberal leader Sussan Ley earlier said the Medicare system needed more support.

“Wrangling the state premiers has become a bit of a national sport,” she said.

“People need access to doctors, and absolutely, that discussion today is a vital one. We do need to have our healthcare system back where it was.”

It was the first national cabinet meeting for newly elected NSW Premier Chris Minns, leaving Tasmanian Premier Jeremy Rockliff as the only Liberal leader in the group.

National cabinet also discussed national skills agreements, the transition towards net-zero, as well as support for the Indigenous voice referendum.

-with AAP