Australians are living and working longer but the number who can't look after themselves is growing, a national report card has found.
The Australia's Welfare report for 2013 found Australian governments spent $119 billion on welfare in 2010-11 - an average of $5294 per resident.
Spending on welfare cash payments and services in the same year outstripped health spending by nearly a third, according to the Australian Institute of Health and Welfare (AIHW) report.
In the previous financial year, one in four households relied on government pensions or allowances as their main income source.
AIHW director and CEO David Kalisch said the report showed some Australians were doing it tough.
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"Where we live, our family structure and our levels of education all affect the quality of our lives and how long we can expect to live," he said.
Mr Kalisch said Australia's ageing population was a major factor in changing demographics.
Elderly singles were more likely to be trapped in poverty for five or more years over a nine-year period than families with children.
"Older Australians can expect to live longer than ever before, are enjoying more years of life without disability, and are increasingly remaining in the workforce," he said.
"But while overall there is a large and growing group of older people who are generally well, living independently and actively participating in society, the number of older, and younger, Australians who are unable to care for themselves at home, or who require support to do so, is also growing."
An estimated four million Australians now have some form of disability, he said.
In 2009, about 2.6 million people - often family members and friends of a frail, sick or disabled person - acted as informal carers.
