Non-government sources

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Individual spending Private health insurance provider spending Other non-government spending Individuals’ health spending relative to income and wealth

In 2023–24, non-government sources spent $82.3 billion on health (Figure 17), a 3.7% increase in real terms compared to the previous year. Individuals contributed $44.0 billion, just over half (53.5%) of non-government health spending, private health insurance providers $21.0 billion (25.5%) and other non-government sources $17.3 billion (21.0%). 

Figure 17: Non-government health spending, constant prices (a), by source of funds, 2013–14 to 2023–24

The line graph shows that spending by individuals increased each year and overall, from $32.7 billion in 2013–14 to $44.0 billion in 2023–24. Spending by private health insurance funds also increased each year and overall, from $16.5 billion in 2013–14 to $21.0 billion in 2023–24. Apart from the decrease in 2016–17, over the 10-year period other non-government spending increased overall from $12.6 billion in 2013–14 to $17.3 billion in 2023–24.

The line graph shows that spending by individuals increased each year and overall, from $32.7 billion in 2013–14 to $44.0 billion in 2023–24. Spending by private health insurance funds also increased each year and overall, from $16.5 billion in 2013–14 to $21.0 billion in 2023–24. Apart from the decrease in 2016–17, over the 10-year period other non-government spending increased overall from $12.6 billion in 2013–14 to $17.3 billion in 2023–24.

 ⁽ᵃ⁾ Constant price health spending is in 2023–24 prices.

Notes

  1. Funding by private health insurance funds excludes the Australian Government private health insurance premium rebate.
  2. Other non-government refers to spending on health goods and services by injury compensation insurers and other sources of private income. All non-government sector capital spending is also included here since the funding sources of non-government capital spending are not known. If funding sources were known, this capital spending would be spread across all non-government funding sources.

Source: AIHW Health Expenditure Database (Table 19).

Individual spending

Individuals spent an estimate of $44.0 billion out-of-pocket on health goods and services in 2023–24. This was 3.0% more than in 2022–23 in real terms (Table 20). 

In 2023–24, individuals spent an estimate of $15.8 billion (35.8%) on medications not subsidised through the PBS, including over-the-counter medications, vitamins and health-related products. Another $8.0 billion (18.1%) was spent on dental services and $7.1 billion (16.2%) on both referred and unreferred medical services (Table 20). 

Individuals’ spending on private hospitals decreased by 3.2% compared to 2022–23 (Table A5, A6). 

Per person individual health spending

Health spending by individuals equated to an average of $1,634 per person in 2023–24. 
 This was made up of:

  • $585 on other medications (mainly over-the counter pharmaceuticals and under-copayment pharmaceutical prescriptions)
  • $296 on dental services
  • $265 on referred and unreferred medical services
  • $144 on hospital services
  • $128 on aids and appliances
  • $131 on other health practitioners, such as chiropractors, optometrists, practice nurses and physiotherapists
  • $59 on medications partly subsidised by the PBS (Figure 18).

This annual per person spending increased by 0.6% in 2023–24 in real terms, $10 more than in 2022–23. 

Figure 18: Average (a) per person individual health expenditure, by area of expenditure, constant prices (b), 2013–14 to 2023–24

The line graph shows per person health spending by individuals for hospitals, patient transport services, medical services, dental services, other health practitioners, community and public health, benefit-paid pharmaceuticals, all other medications and aids and appliances over the period 2013–14 to 2023–24. In 2023–24, per person health spending increased for All other medication, dental services, medical services, while decreasing for aids and appliances, other health practitioners, and remain unchanged for Benefit-paid pharmaceuticals, patient transport services, hospitals and community and public health as compared to 2022–23. Over the 10-year period, per person health spending by individuals on all other medications increased by a relatively larger amount from $429 in 2013–14 to $585 in 2023–24. Per person spending by individuals on hospitals fluctuated between $114.6 and $158.3 from 2013–14 to 2023–24. Per person health spending by individuals on other practitioners decreased from $146.5 in 2013–14 to $131.4 from 2013–14 to 2023–24.

The line graph shows per person health spending by individuals for hospitals, patient transport services, medical services, dental services, other health practitioners, community and public health, benefit-paid pharmaceuticals, all other medications and aids and appliances over the period 2013–14 to 2023–24. In 2023–24, per person health spending increased for All other medication, dental services, medical services, while decreasing for aids and appliances, other health practitioners, and remain unchanged for Benefit-paid pharmaceuticals, patient transport services, hospitals and community and public health as compared to 2022–23. Over the 10-year period, per person health spending by individuals on all other medications increased by a relatively larger amount from $429 in 2013–14 to $585 in 2023–24. Per person spending by individuals on hospitals fluctuated between $114.6 and $158.3 from 2013–14 to 2023–24. Per person health spending by individuals on other practitioners decreased from $146.5 in 2013–14 to $131.4 from 2013–14 to 2023–24.
  1. Based on ABS annual estimated resident population (Table 37).
  2. Constant price health spending is in 2023–24 prices.

Note: Medical services refer to both referred and non-referred medical services.

Source: AIHW Health Expenditure Database; Australian Bureau of Statistics (ABS 2025c) (Table 21).

Private health insurance provider spending

During 2023–24, providers of private health insurance financed $21.0 billion (7.8%) of total health spending. More than half ($11.5 billion) was for hospital services, with private hospitals receiving an estimated $10.5 billion. Approximately $3.7 billion was spent on primary health care services (Figure 19).

Spending by private health insurance providers increased by 3.5% ($0.7 billion) in 2023–24 in real terms, which was 1.1 percentage points higher than the average annual growth rate for the decade from 2013–14 (2.4%). 

Note that the private health insurance spending on referred medical services is related to the gap payment for in-hospital MBS services which currently could not be split into public and private hospitals due to data unavailability.

Figure 19: Private health insurance provider health spending by area of spending, constant prices (a), 2013–14 to 2023–24

The line graph shows private health insurance provider health spending for public hospitals, private hospitals, primary health care, referred medical services and other services from 2013–14 to 2023–24. During 2021–22 to 2023–24, there was an overall increase in private health insurance provider health spending for most areas of spending. In 2023–24, private health insurance provider health spending on private hospitals, other services, primary health care, referred medical services and public hospitals were $10.5 billion, $3.8 billion, $3.7 billion, $2.0 billion and $1.0 billion, respectively. 

The line graph shows private health insurance provider health spending for public hospitals, private hospitals, primary health care, referred medical services and other services from 2013–14 to 2023–24. During 2021–22 to 2023–24, there was an overall increase in private health insurance provider health spending for most areas of spending. In 2023–24, private health insurance provider health spending on private hospitals, other services, primary health care, referred medical services and public hospitals were $10.5 billion, $3.8 billion, $3.7 billion, $2.0 billion and $1.0 billion, respectively. 
  1.  Constant price health spending is in 2023–24 prices.

Notes:

  1. This shows the payments made by health insurance funds over the year and does not necessarily reflect the actual services provided during the year.
  2. Other services include patient transport services, aids and appliances, and administration.

Source: AIHW Health Expenditure Database (Table 22).

Private health insurance provider health spending per person covered

In 2023–24, private health insurance providers spent an estimated average of $1,729 per person covered by a private hospital insurance policy. This was an increase of $19 (1.1%) from 2022–23 in real terms. The average annual growth for the decade to 2023–24 was 1.4% (Figure 20).

South Australia ($1,906), Queensland ($1,875), and Tasmania ($1,808) had the highest spending by private health insurers per person covered, at more than 1.8 times the amount of the Northern Territory ($1,018) (Figure 20). 

Nationally, spending by private health insurers equated to an average of $778 per person in 2023–24, including those not covered by private health insurance. This represented an increase of 1.1% from 2022–23 in real terms. The average annual growth rate for the decade from 2013–14 was 1.0% (Table 24). 

Figure 20: Average per person (a) spending by private health insurance providers for each state and territory, constant prices (b), 2013–14 to 2023–24

The line graph shows that average per person spending by private health insurance providers for all states and territories and Australia from 2013–14 to 2023–24. Between 2020–21 to 2021–22, average per person spending for all state and territories and Australia as the whole nation decreased steadily. In 2023–24, average per person spending by private health insurance providers in New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania and Australia as the whole nation was around $1,729. At the same time, average per person spending by private health insurance providers was $1,275 for the Australian Capital Territory and $1,018 for the Northern Territory. 

The line graph shows that average per person spending by private health insurance providers for all states and territories and Australia from 2013–14 to 2023–24. Between 2020–21 to 2021–22, average per person spending for all state and territories and Australia as the whole nation decreased steadily. In 2023–24, average per person spending by private health insurance providers in New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania and Australia as the whole nation was around $1,729. At the same time, average per person spending by private health insurance providers was $1,275 for the Australian Capital Territory and $1,018 for the Northern Territory. 
  1. Based on the number of people with private hospital insurance cover living in each state and territory.
  2. Constant price health spending is in 2023–24 prices.

Sources: AIHW Health Expenditure Database; APRA (Australian Prudential Regulation Authority) (2025a, 2025b) (Table 23).

Other non-government spending

In 2023–24, other non‑government sources spent $17.3 billion on health, representing 6.4% of total health spending in the year (Table 10). This showed an increase of 5.8% compared with 2022–23. The average annual growth rate over the decade to 2023–24 was 3.2%.

During 2023–24, injury compensation insurers spent $4.4 billion on health goods and services: $3.1 billion by workers’ compensation insurers and $1.3 billion by compulsory third‑party motor vehicle insurers (Table 25).

Individuals’ health spending relative to income and wealth

To better understand how health spending is impacting the disposable or readily accessible wealth of people (the ‘out-of-pocket costs’), health spending by individuals is compared with both average incomes and measures of net worth to understand whether, on average across the population, individuals’ health spending is rising relative to personal wealth over time. Note that these are average figures, so the analysis here does not take into account inequality issues in income, wealth, and individuals’ health spending.

In 2023–24, health spending by individuals amounted to an average of $1,635 per person, accounting for 2.16% of average annual income, a slight decrease from 2022–23 (2.17%) (Figure 21). On average over the decade, individual health spending increased by 3.5% per year compared to 2.7% per year for the average annual income (in current prices). 

Figure 21: Ratio of average individual health spending (a) to average annual income (b), current prices, 2013–14 to 2023–24

The line graph shows that annual growth rate in average individual health spending was positive for all years between 2013–14 and 2023–24 except in 2015–16 and 2019–20. In the 10- year period, annual growth rate in average individual health spending ranged from –6.21 per cent to 12.22 per cent. Growth rates in average annual income were positive each year in the 10- year period and ranged between 0.95 per cent and 4.89 per cent. The ratio between average individual health spending per person and average annual income was relatively flat with an average of 2.0 per cent except in 2019–20 was 1.87 per cent.

The line graph shows that annual growth rate in average individual health spending was positive for all years between 2013–14 and 2023–24 except in 2015–16 and 2019–20. In the 10- year period, annual growth rate in average individual health spending ranged from –6.21 per cent to 12.22 per cent. Growth rates in average annual income were positive each year in the 10- year period and ranged between 0.95 per cent and 4.89 per cent. The ratio between average individual health spending per person and average annual income was relatively flat with an average of 2.0 per cent except in 2019–20 was 1.87 per cent.
  1. Based on annual estimated resident population (Table 37).
  2. Refers to annualised average weekly earnings.

Sources: AIHW Health Expenditure Database; Australian Bureau of Statistics (2025a, 2025d) (Table 26).

In 2023–24, individual health spending represented on average of 0.268% of their net worth, a marginal decrease from 2022–23 (0.274%) (Figure 22). In 2023–24, per person net worth grew by 6.3%, while average individual health spending increased by 4.1% in nominal terms. On average over the decade, per person net worth grew nominally by 6.4% per year, while average individual health spending grew by 3.5% per year. 

Figure 22: Ratio of average individual health spending (a) to per person net worth (b), current prices, 2013–14 to 2023–24

The line graph shows that both the growth rates in individual net worth and average individual health spending fluctuated between 2013–14 and 2023–24. Annual growth rate in individual net worth was lowest at 0.4 per cent in 2018–19 before reaching its maximum rate at 18.2 per cent in 2020–21. Meanwhile, annual growth rate in average individual health spending was lowest in 2019–20 at –6.2 per cent and highest in 2020–21 at 12.2 per cent. The ratio between per person health spending by individuals and individual net worth was relatively decreased between 2013–14 and 2023–24 from 0.36 per cent to 0.27 per cent.

The line graph shows that both the growth rates in individual net worth and average individual health spending fluctuated between 2013–14 and 2023–24. Annual growth rate in individual net worth was lowest at 0.4 per cent in 2018–19 before reaching its maximum rate at 18.2 per cent in 2020–21. Meanwhile, annual growth rate in average individual health spending was lowest in 2019–20 at –6.2 per cent and highest in 2020–21 at 12.2 per cent. The ratio between per person health spending by individuals and individual net worth was relatively decreased between 2013–14 and 2023–24 from 0.36 per cent to 0.27 per cent.
  1. Based on annual estimated resident population (Table 37).
  2. Refers to annualised net worth.

Sources: AIHW Health Expenditure Database; Australian Bureau of Statistics (2025a, 2024a) (Table 27).

About measures of individual income and wealth

To estimate how individuals’ health spending has compared with the financial resources available to individuals, 2 measures are considered:

  • income is used to provide a sense of how health spending compared with average earnings throughout the year – how much was spent on health compared with how much earnt in that year
  • net worth is used to provide a sense of how health spending compared with the overall wealth position of individuals in a given year, providing a more long-term sense of how health spending compared with personal wealth, particularly where health costs may be too high to be met by regular income.
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