This report is the second comprehensive analysis of expenditures on health services for Aboriginal and Torres Strait Islander people. It examines expenditures in 1998-99 compared with health services expenditure for the rest of the Australian population. It examines health resource distribution by different levels of government, the private sector, by region and by primary and secondary/tertiary health care. Health expenditure in 1998-99 is compared with the earlier 1995-96 findings. These analyses enable a greater understanding of the different patterns of health service use by Aboriginal and Torres Strait Islander people.