Health spending per person

Taking into account population size and growth, average per capita spending on health in 2022–23 was $9,597. In real terms, this was $232 (2.4%) less per person than in 2021–22 (Figure 2a). Before 2022–23, per capita spending had grown with the modest rates of 2.2% in 2018–19 and 0.2% in 2019–20, then reached high growth rates in 2020–21 and 2021–22 of 6.7% and 5.7%, respectively. In 2022–23, the growth in per capita spending was slower than the average yearly increase over the decade to 2022–23 (1.9%). However, per capita spending was still higher than might have been expected based on the 10-year historical trend (2008–09 to 2018–19) (Figure 2b).

The decrease in per capita spending in 2022–23 can be attributed to the ending of COVID-19 restrictions resulting in an increase in immigration levels and a decreasing and returning trend on health spending. Health spending decreased in 2022–23 by 0.3% in real terms while the average yearly increase over the decade to 2022–23 was 3.3%. Population growth in 2022–23 was around 2.1% which was higher than the average population growth rate during the COVID-19 pandemic (0.5%) and higher than the average population growth rate (1.6%) over the pre-pandemic period. It is likely that health spending per person was still above the long-term trend although health spending and population growth returned to the pre-pandemic trend (Figure 2b).

Figure 2a: Average total health spending per person (a), and annual growth rate, constant prices (b), 2012–13 to 2022–23

The line graph shows that average total health spending per person in constant prices increased from $7,982 in 2012–13 to $9,829 in 2021–22. It then decreased to $9,597 in 2022–23. Annual growth rate in average total health spending per person ranged from –0.3 per cent and 6.7 per cent between 2012–13 and 2020–21 before decreased to -2.4 per cent in 2022-23. Annual growth rate in 2020–21 was 6.7 per cent, higher than the average annual growth rate in the last 5-year period.

The line graph shows that average total health spending per person in constant prices increased from $7,982 in 2012–13 to $9,829 in 2021–22. It then decreased to $9,597 in 2022–23. Annual growth rate in average total health spending per person ranged from –0.3 per cent and 6.7 per cent between 2012–13 and 2020–21 before decreased to -2.4 per cent in 2022-23. Annual growth rate in 2020–21 was 6.7 per cent, higher than the average annual growth rate in the last 5-year period.

⁽ᵃ⁾ Based on ABS annual estimated resident population (Table 37).

⁽ᵇ⁾ Constant price health spending is in 2022–23 prices.

Source: AIHW Health Expenditure Database (Table 3).

Figure 2b: Average total health spending per person, constant prices, during the COVID-19 pandemic (2019–20 to 2022–23) compared with the pre-pandemic period

The line graph shows the average total health spending per person, in the four years during the COVID-19 pandemic (2019–20 to 2022–23) compared to the trend of the previous 10-year period (2008–09 to 2018–19). Assuming the average growth rate for the previous 10-year period remains the same from 2019–20 to 2022–23, the trend amounts of average total health spending per person in constant prices from 2019–20 to 2022-23 were $8,870, $9,043, $9,219, and $9,398, respectively. While the actual amounts for these years were $8,715, $9,297, $9,829 and $9,597, respectively.

The line graph shows the average total health spending per person, in the four years during the COVID-19 pandemic (2019–20 to 2022–23) compared to the trend of the previous 10-year period (2008–09 to 2018–19). Assuming the average growth rate for the previous 10-year period remains the same from 2019–20 to 2022–23, the trend amounts of average total health spending per person in constant prices from 2019–20 to 2022-23 were $8,870, $9,043, $9,219, and $9,398, respectively. While the actual amounts for these years were $8,715, $9,297, $9,829 and $9,597, respectively.

Notes:

  1. Actual amount is the health spending in 2022–23 prices.
  2. Trend amount refers to the heath spending in 2022–23 prices, following the trend of the previous 10-year period (assuming the average annual growth rate for the previous 10-year period remains the same for the period from 2019–20 to 2022–23).
  3. Based on annual estimated resident population (Table 37).

Source: AIHW Health Expenditure Database (Table 3).

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