AIHW Board AIHW senior staff Annual report Capability statement Collaboration Customer care charter FOI - freedom of information Indexed list of files Organisation chart Presentations Privacy of data Public consultation Public Interest Disclosure Strategic Directions 2011-2014 Tenders
By category Ageing, disability & carers Families & children Hospitals Housing & homelessness Indigenous Australians Population groups Risk factors, diseases & death Services, workforce & spending
By subject Adoptions Aged care Ageing Alcohol & other drugs Arthritis & musculoskeletal conditions Asthma Australia's health Australia's welfare Burden of disease Cancer Cardiovascular health Child health, development & wellbeing Child protection Children's services Chronic diseases
Chronic kidney disease Chronic respiratory conditions COPD Deaths Dementia Dental & oral health Diabetes Disability Expenditure Eye health Food & nutrition Health indicators Homelessness Hospitals Housing assistance Indigenous Australians Injury Life expectancy
Male health Mental health Mothers & babies National health priority areas Overweight & obesity Palliative care Population health Prisoner health Risk factors Rural health Safety & quality of health care Veterans' health Workforce Youth health & wellbeing Youth justice
In other sections Data Publications Contact AIHW
Publications CatalogueOrdering publicationsForthcoming publicationsOnline reportsRate our publication effectivenessSubscribe to release notices
By subject Adoptions Aged care Ageing Alcohol & other drugs Arthritis & musculoskeletal conditions Asthma Australia's health Australia's welfare Burden of disease Cancer Cardiovascular health Child health, development & wellbeing Child protection Children's services Chronic diseases Chronic kidney disease
Chronic respiratory conditions Corporate publications Data linkage Data standards Deaths Dental & oral health Diabetes Disability Expenditure Eye health Food & nutrition General practice Health indicators Homelessness Hospitals Housing assistance Indigenous Australians Indigenous housing
Injury Life expectancy Male health Mental health services Mothers & babies National health priority areas Overweight & obesity Palliative care Population health Prisoner health Risk factors Rural health Safety & quality of health care Veterans' health Workforce Youth health & wellbeing Youth justice
In other sections Subjects Data Contact AIHW
About AIHW data METeOR—metadata online registry Data by subject Catalogue of holdings of AIHW data Customised data analysis request Data governance framework Data linking Data standards GovHack Privacy of data Accessing Australian Government health and welfare data
By subject Adoptions Aged care Alcohol and other drugs Alcohol data sources Body weight data sources Cancer Children's headline indicators (CHI) Chronic disease indicators Deaths Disability
Expenditure FHBH - Fixing houses for better health General practice (GP) data Height and weight data sources Hospitals Indigenous Australians International collaboration Maternity Information Matrix (MIM) Medical indemnity
Mental health National Aged Care Data Clearinghouse National core maternity indicators (NCMI) National indicator catalogue Perinatal data Risk factors statistics Specialist Homelessness Services (SHS) Tobacco data sources Workforce
In other sections Subjects Publications Contact AIHW
AACR ACFADD AHSAC AIHW Board AIHW Ethics Committee AODTS NMDS WG CKDMAC CMAG CSDWG CVDMAC HEAC HHIMG
IGIHM JJ RIG MHISSC NAGATSIHID NCIAG NCSIMG NDDWG NDIMG NHISSC NIAG NIRAPIMG NMDD
NMDS NMHPSC NOPSAD NPDDC NPHEP NPHIC PCDWG PDWG PHIDG PHIG REDWG Workforce committees YIAG
Education worksheets Infographics What's in the pipeline Subscribe to education notices Other educational links
Worksheets by subject All Latest Ageing Australia's health Australia's welfare Carers
Children & youth Disability Disease Drugs
Health Health prevention Indigenous Australians Injury
In other sections Subjects Data Publications Contact AIHW
Job vacancies How to apply for a position at the AIHW Conditions of employment Benefits of working for the AIHW Temporary employment register Occupational Training Program Contact the People Unit Graduates
AIHW Access magazine Media releases Subscribe to release notices Media FAQ Media contacts
You are here:
Total health expenditure in Australia grew by over 7% between
2004-05 and 2005-06 to $87 billion or $4,200 per person according
to a new report by the Australian Institute of Health and Welfare
Head of the Institute's Expenditure and Economics Unit, Mr John
Goss, said health expenditure as a proportion of gross domestic
product (GDP) was 9.0%, down slightly from 9.05% the previous year,
and up from 7.5% in 1995-96.
'Our health to GDP ratio is comparable to New Zealand, is more
than the UK, and is considerably lower than the USA, which in 2005
was 15.3% of GDP,' Mr Goss said.
The report, Health expenditure Australia 2005-06, shows
that after adjusting for inflation, total health expenditure
increased 3.1% in 2005-06, compared to annual average growth in the
decade to 2005-06 of 5.1%.
The areas of expenditure that showed relatively high real
increases (after allowing for inflation) were research (7%), public
hospital services (6%), community health (5%), aids and appliances
and other health practitioners (4% each).
The most noticeable slowing in real expenditure growth was in
medications. This increased by just 1.6% in 2005-06, against an
annual average real increase of 8.6% over the last decade.
The report showed the majority of spending in health was funded
by governments (68%), with the Australian Government contributing
43%. State, territory and local governments contributed 25%. The
non-government sector (individuals, private health insurance and
other non-government) funded the remaining 32%.
In real terms, the Australian Government's funding grew by 0.7%
in 2005-06. State, territory and local governments funding grew by
7.6% and non-government funding by 2.9%.
Key drivers for this change were the high increase in
expenditure on public hospitals, which was largely borne by state
and territory governments, and the slowing of expenditure in
medications, which is primarily funded by the Australian
Between 1995-96 and 2005-06, the Australian Government share of
public hospital funding decreased from 45% to 41%. State and
territory government funding during this period increased from 46%
In 2005-06, individuals spent an estimated $15.4 billion on
health goods and services (17% of total health expenditure): $5
billion for medications; $4 billion for dental services, $2 billion
for aids and appliances and $1.7 billion on medical services.
Real growth in expenditure by individuals between 1995-96 and
2005-06 was 6.0% per year, 1.2 percentage points above the real
growth in recurrent health expenditure (4.8%).
In previous editions of Health Expenditure Australia, high-level
residential care expenditure was included as health
This expenditure has been reclassified to welfare services,
which reduces the health expenditure to GDP ratio by 0.6 percentage
points to 9.0% of GDP, and correspondingly increases the welfare
services expenditure to GDP ratio.
5 October 2007
Further information: Mr John Goss, AIHW, tel.
02 6244 1151 or mob. 0402 346 379 or Ms Gail Brien, AIHW, tel. 02
For media copies of the report: Publications
Officer, AIHW, tel. 61 2 6244 1032.
Availability: Check the AIHW Publications
Catalogue for availability of Health expenditure