Health expenditure Australia 2021-22

Capital spending is an important component of total health spending. However, capital outlays often relate to relatively high-cost items that have useful lives extending over many years. As such, growth in capital spending from year to year can be difficult to interpret. For example, 2016–17 capital spending estimates were affected by a large amount of capital spending on the new Royal Adelaide Hospital in South Australia. This one-off spending increased 2016–17 data and contributed to the 27.9% decrease in capital spending in 2017–18.

Capital spending on health facilities and investments in 2021–22 was $11.7 billion. Over the decade to 2021–22, spending on capital accounted for around 5.8% of total health spending per year on average (Table 2).

From 2011–12 to 2021–22, capital spending by the non-government sector averaged half (52.0%) of capital spending, state and territory governments averaged 46.9% and the Australian Government averaged 1.1% (Figure 31).

Figure 31: Capital spending, by source of funds, constant prices ^(a), 2011–12 to 2021–22

^(a) Constant price health spending is in 2021–22 prices. 

Notes:

1. Non-government spending on capital is by other non-government only, with no spending by individuals or private health insurance providers.
2. The increase in 2016–17 for state and territory governments was due to a one-off capital spending project in South Australia.

Source: AIHW Health Expenditure Database (Table 36).