in brief
- Spending on health reached $270.5 billion in 2023-24, or $10,037 per person.
- Life expectancy continues to rise despite drag from COVID-19 and chronic diseases.
Australians are now spending the equivalent of $10,037 per person on health goods and services annually, which represents a significant increase over a decade, a new government report has found.
The Australian Institute of Health and Welfare (AIHW) report, Australia's health 2026, estimates that $270.5 billion was spent on health in 2023-24, the latest year surveyed.
Adjusted for inflation, that is an increase from the $8,615 spent per person a decade prior. It includes spending by federal, state and territory governments, health insurance providers, individuals, and non-government sources.
The figures are derived from the government's latest annual snapshot, published on Thursday, which reveals the nation's wellbeing.
It also found that Australians are living longer, despite a recent decline in life expectancy during the height of the Covid-19 pandemic. Males born between 2022 and 2024 are expected to reach the age of 81.1 years, while females are expected to reach 85.1.
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However, chronic disease conditions continue to have a considerable impact on the health of Australians, with 61 per cent of people living with one. One in five also experienced a mental health condition like anxiety or depression in the last 12 months.
"Our health is shaped by many different factors, including our environment, lifestyle and access to the services we need," AIHW spokesperson Louise Gates said.
"Good health helps Australians stay connected to their communities, continue learning and working, and live long fulfilling lives."
Healthcare spending continues to rise
Annually, Australia spends more on health care than the OECD average, at $10,500 per person versus $8,400 overseas.
The largest share of that spending is on hospital care, which accounted for 42 per cent of total health expenditure.
By contrast, primary healthcare, including public health, accounted for 33 per cent of total spend, a gap that has continued to widen, the AIHW said.
Out-of-pocket healthcare spending remains the largest non-government contribution to total spending, climbing to $44 billion, or $1,634 per person.
Out-of-pocket spending has increased by an average of 1.4 per cent each year since 2013–14.
Mental health diagnoses increase
Mental health conditions are affecting a growing number of Australians, particularly young people.
While the overall proportion of people experiencing a mental disorder has remained relatively stable over time, young people aged 16–24 have experienced a significant increase.
Diagnoses for conditions such as anxiety and depression increased from 26 per cent to 39 per cent between 2007 and 2020–22 for young people.
Young people are also the most likely demographic to access Medicare-subsidised mental health services, with young females accessing support at twice the rate of young males.
Prescription of antidepressants has risen from 120 people per 1,000 to 139 people over the past decade. Stimulant medications used in the treatment of ADHD have risen considerably from six to 28 people per thousand.
Inequalities remain
Of the 18.5 million people above the age of 15 who needed to see a general practitioner (GP) in 2024–25, one in four said they had delayed doing so at least once or avoided doing so altogether.
"Potential barriers to Australians seeing a GP include cost, service availability and waiting times," Gates said.
Those not seeing a GP due to cost have risen to 7.7 per cent, almost doubling over the past decade.
Barriers to access sit alongside stark health inequalities. After adjusting for age, the death rate in 2022–24 for people living in the lowest socioeconomic area was 1.5 times as high as the rate for people living in the highest socioeconomic areas.
Similarly, people living in very remote areas had a death rate 1.6 times as high as people living in major cities.
"While many health outcomes for Australians are improving, the growing impact of chronic conditions, poor mental health and an ageing population mean prevention and effective, equitable and coordinated care from health, disability, aged care and other welfare systems are more important than ever," Gates said.
However, the report found there has been considerable improvement in the health of the First Nations population, although further progress remains.
Among First Nations people, healthy years lost from illness and premature deaths decreased by 6.3 per cent between 2011 and 2022, driven by declines in premature deaths from cardiovascular diseases.
Many health outcomes avoidable
Overweight and obesity are increasingly impacting the health of Australians and are now the leading risk factor contributing to ill health and death, overtaking tobacco smoking for the first time.
Around 13.2 million adults (67 per cent) and 1.4 million children and adolescents (27 per cent) were living with overweight or obesity in 2022–24.
"Around 36 per cent of Australia’s total disease burden in 2024 could have been prevented or reduced by addressing risk and environmental factors," Gates said.
Dr Sayan Mitra of the Charles Perkins Centre at the University of Sydney said the report reveals a health system built around "late intervention," rather than proactivity.
"Many chronic diseases begin years before a clinical diagnosis," he said, pointing to measurable health indicators as practical but underutilised information.
"Australia’s next major health gain will depend on shifting digital health from passive data collection to active prevention infrastructure, using individual-level signals at population scale to identify risk earlier and act before chronic disease becomes established," he said.
"Australia cannot treat its way out of chronic disease, and acting as though it can will only make the burden larger."
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