Australian Institute of Health and Welfare (2021) Health expenditure Australia 2019-20, AIHW, Australian Government, accessed 08 December 2022.
Australian Institute of Health and Welfare. (2021). Health expenditure Australia 2019-20. Retrieved from https://www.aihw.gov.au/reports/health-welfare-expenditure/health-expenditure-australia-2019-20
Health expenditure Australia 2019-20. Australian Institute of Health and Welfare, 17 December 2021, https://www.aihw.gov.au/reports/health-welfare-expenditure/health-expenditure-australia-2019-20
Australian Institute of Health and Welfare. Health expenditure Australia 2019-20 [Internet]. Canberra: Australian Institute of Health and Welfare, 2021 [cited 2022 Dec. 8]. Available from: https://www.aihw.gov.au/reports/health-welfare-expenditure/health-expenditure-australia-2019-20
Australian Institute of Health and Welfare (AIHW) 2021, Health expenditure Australia 2019-20, viewed 8 December 2022, https://www.aihw.gov.au/reports/health-welfare-expenditure/health-expenditure-australia-2019-20
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In 2019–20, an estimated $202.5 billion was spent on health goods and services in Australia. This equated to an average of approximately $7,926 per person and comprised 10.2% of overall economic activity.
After adjusting for inflation, total health spending (recurrent and capital) was 1.8% more than in 2018–19. This was lower than the average yearly growth rate over the decade to 2019–20 (3.4%).
The COVID-19 pandemic affected every aspect of the health system towards the end of the 2019–20 financial year. Governments spent $4.5 billion ($2.5 billion by the Australian Government and $2 billion by state and territory governments) as part of the National Partnership on COVID-19 response (NPCR), including $1.1 billion on hospital services payments, $2.8 billion on state public health payments, and $0.5 billion on private hospital financial viability payments. Note that this does not include governments’ spending outside the scope of the NPCR.
As in previous years, governments funded around 70% of health spending – $86.4 billion by the Australian Government and $56.2 billion by state and territory governments.
In contrast to previous years, the ratio of government health spending to tax revenue increased in 2019–20 to 26.3% (from 24.2% in 2018–19). This appears to have mostly been driven by reduced tax revenue as a result of the COVID-19 pandemic.
While government health spending increased by 5.0% in 2019–20, non-government health spending showed a substantial reduction in real terms. In 2019–20, non-government entities (including individuals, private health insurance providers, injury compensation insurers and other private sources) spent an estimate of $59.9 billion on health (5.2% less in real terms than 2018–19). Individuals were the largest contributor to this decline, with spending of $29.8 billion being 7.6% less than 2018–19.
During 2019–20, spending increased on most areas of health. The greatest increases in recurrent spending were for:
In 2019-20, $202.5 billion was spent on health goods and services in Australia
Read more about total health spending
More than two-thirds (70.4%) of health spending was by governments
Read more about government sources
$66.4 billion spent on public hospitals, $17.1 billion spent on private hospitals
Read more about hospitals
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