In October 2010, her government introduced legislation to reform funding arrangements for the health system, with the intention of giving the Commonwealth responsibility for providing the majority of funding to public hospitals and 100 per cent of funding for primary care and GP services.
In February 2011, Gillard announced extensive revision of the original health funding reforms proposed by the Rudd Government, which had been unable to secure the support of all state governments. The revised Gillard government plan proposed that the federal government move towards providing 50% of new health funding (and not 60 per cent as originally agreed) and removed the requirement of thestates to cede a proportion of their GST revenue to the Federal Government in order to fund the new arrangement.
The new agreement was supported by all state premiers and chief ministers
and signed on 2 August.
Immigration
In relation to population targets for Australia, Gillard told Fairfax Media in August 2010 that while skilled migration is important: "I don't support the idea of a big Australia". Gillard also altered the nomenclature of Tony Burke's role as "Minister for Population" to that of "Minister for Sustainable Population".
Asylum seekers
After winning leadership of the Labor Party, Gillard identified addressing the issue of unauthorised arrivals of asylum seekers as a priority of her government. She announced that negotiations were underway for a return to "offshore processing" of asylum seeker claims. Gillard ruled out a return to processing at Nauru and named East Timor as a preferred location for new detention and processing facilities.
The East Timorese Government rejected the plan.