Spending trends by source

During 2022–23, total health spending was $252.5 billion. Of this, more than two-thirds (70.8% or $178.7 billion) was government funded (40.2% by the Australian Government and 30.6% from state and territory governments). The remaining 29.2% ($73.8 billion) was funded by non‑government sources (Figure 8). The Australian Government health spending decreased mainly due to reduced COVID-19 related public health spending, while the increase in state and territory spending was due to public hospital spending. These trends will be explained in more detail in the following sections.

Health spending by the National Disability Insurance Agency (NDIA) on disability-related health services in the health system is not currently included in the estimates of this report. According to the NDIA, in 2022–23 $4.0 billion in National Disability Insurance Scheme funding could be attributed to health spending (NDIA 2024).

Figure 8: Proportion of total health spending by source of funds, current prices, 2012–13 to 2022–23

The line graph shows that the proportions of total health spending by source of funds remained relatively stable between 2012–13 and 2022–23. The Australian Government and state and territory governments funded majority of total health spending in 2022–23, with each source funding 40.2 per cent and 30.6 per cent, respectively. Non-government sources made up the rest with individuals, health insurance providers and other non-government sources funding 15.4 per cent, 7.7 per cent and 6.2 per cent respectively in 2022–23.

The line graph shows that the proportions of total health spending by source of funds remained relatively stable between 2012–13 and 2022–23. The Australian Government and state and territory governments funded majority of total health spending in 2022–23, with each source funding 40.2 per cent and 30.6 per cent, respectively. Non-government sources made up the rest with individuals, health insurance providers and other non-government sources funding 15.4 per cent, 7.7 per cent and 6.2 per cent respectively in 2022–23.

Note: Other non-government refers to spending on health goods and services by injury compensation insurers and other sources of private income.

Source: AIHW Health Expenditure Database (Table 10).

 

NDIA (National Disability Insurance Agency) 2024. Government health spending by services, unpublished data request.

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