Spending trends by source

During 2023–24, total health spending in Australia was $270.5 billion. Of this, more than two-thirds (69.6% or $188.2 billion) was funded by government, comprising 39.3% from the Australian Government and 30.3% from state and territory governments. The remaining 30.4% ($82.3 billion) came from non‑government sources (Figure 8). 

The Australian Government health spending has continued to decline in 2023–24, mainly due to lower public health spending in the post-pandemic period, 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 2023–24, $4.8 billion in National Disability Insurance Scheme funding could be attributed to health-related services (NDIA 2025).

Figure 8: Proportion of total health spending by source of funds, current prices, 2013–14 to 2023–24

The line graph shows the proportions of total health spending by source of funds from 2013–14 to 2023–24. These proportions remained relatively stable over the period. In 2023–24, the Australian Government and state and territory governments funded the majority of total health spending, contributing 39.3% and 30.3%, respectively. Non-government sources accounted for the remainder, with individuals, health insurance providers, and other non-government entities contributing 16.3%, 7.8%, and 6.4%, respectively.

The line graph shows the proportions of total health spending by source of funds from 2013–14 to 2023–24. These proportions remained relatively stable over the period. In 2023–24, the Australian Government and state and territory governments funded the majority of total health spending, contributing 39.3% and 30.3%, respectively. Non-government sources accounted for the remainder, with individuals, health insurance providers, and other non-government entities contributing 16.3%, 7.8%, and 6.4%, respectively.

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).

 

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