Government spending on health relative to government expenses

The ratio of government health spending to total government expenses provides a broad measure of government financial resources being dedicated to health over time. It also offers insight into how health compares with other sectors and how the mix of revenue sources being used to fund health is changing. In this context, comparisons to total government spending represents total government resourcing in terms of both tax revenue and other sources, including borrowing.

In 2023–24, government health spending was $188.2 billion, accounting for 16.8% of total government expenses, approximately 0.3 percentage points lower than in 2022–23 (Figure 7). This indicates that growth in government health spending was slower than other areas of government expenditure (5.2% compared with 7.2% in nominal terms). 

Figure 7: Ratios of government health spending to government expenses, current prices, 2013–14 to 2023–24

The line graph shows total government health spending and overall government expenses from 2013–14 to 2023–24. Total government health spending increased from $104.4 billion in 2013–14 to $188.2 billion in 2023–24. Government expenses were consistently higher than health spending and rose from $649 billion in 2013–14 to $1,122 billion in 2023–24. During this period, the ratio of health spending to total government expenses ranged from 16.1% to 16.8%.

The line graph shows total government health spending and overall government expenses from 2013–14 to 2023–24. Total government health spending increased from $104.4 billion in 2013–14 to $188.2 billion in 2023–24. Government expenses were consistently higher than health spending and rose from $649 billion in 2013–14 to $1,122 billion in 2023–24. During this period, the ratio of health spending to total government expenses ranged from 16.1% to 16.8%.

Note: Government expenses include the total expenses of Commonwealth government, state governments and local governments.

Sources: AIHW Health Expenditure Database; Australian Bureau of Statistics (ABS 2025c) (Table 9).

More on the relationship between tax revenue and government expenses can be found in the box below.

Government expenses

Taxation revenue is a major source of income used by governments to fund expenses. However, tax revenue is not the only way that governments fund public expenses, including health spending. Government expenses can also be funded through borrowing and other forms of revenue generation, such as licence fees, charges for goods and services, fines and return on government assets.

The Australian Government raises revenue through taxing individuals and businesses, including through:

  • personal income tax
  • goods and services tax (GST), for which all revenue is distributed to states and territories
  • company tax. 

State and territory governments receive funds from the Australian Government, but also collect taxes, such as stamp duty on the purchase of a house or taxes on payrolls.

Apart from health spending, other purposes of government expenses include social protection, general public services, economic affairs, defence, education, public order and safety, environmental protection, recreation, culture and religion, and transport (see ABS 2025b).


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