State and territory government spending
In 2020–21, state and territory governments spent $61.6 billion on health. In real terms, this was a 8.6% growth in spending from 2019–20 – an additional $4.9 billion (Table 10). This real growth was higher than the average growth rate over the period from 2010–11 to 2020–21 (3.7% per annum).
Spending relative to government expenses and taxation revenue
In 2020–21, the ratio of state and territory government health spending to their total government expenses was 17.4%, approximately 0.4 percentage points higher than in 2019–20 (Figure 14). This suggests the growth in health spending was faster than other government expenses growth as well as tax revenue growth (Table 16).
During 2020–21, health spending by state and territory governments was 28.0% of their tax revenue (Figure 14). This was 0.3 percentage points higher than 2019–20, reflecting that growth in nominal health spending (10.2%) was faster than tax revenue growth (9.1%) (Table 16).
Figure 14: Ratios of state and territory government health spending to state and territory government tax revenue and government expenses, current prices, 2010–11 to 2020–21