The federal government has outlined a plan to provide every Australian with type 1 diabetes with a potentially life-saving device.

The project, budgeted to cost $273 million, would help people with type 1 or type 2 diabetes to manage their condition by monitoring their blood-sugar levels 24 hours a day and take insulin if needed.

The move to include every Australian with type 1 diabetes would mean an extra 71,000 Australians are eligible for the device under the National Diabetes Support Scheme from 1 July at a maximum cost of $32.50 a month –about the same cost as using blood glucose test strips.