Spending on COVID–19

The Coronavirus disease 2019 (COVID–19) pandemic has been one of the biggest public health challenges Australia has faced since the Influenza pandemic of 1918 around 100 years ago.

COVID–19 is included as an infectious disease within the ABDS condition list and in the disease expenditure database it captures the estimated spending that can be identified by age group and sex for patients who were confirmed or suspected COVID–19 positive patients that were treated in either a public hospital emergency department, public hospital admitted patient or in a private hospital. It also includes GP and specialist attendances related to COVID–19 and pathology testing for COVID–19 claimed through the MBS. From 2021–22 it also includes spending on PBS medications approved by the Therapeutical Goods Administration (TGA) to treat COVID–19. In 2022–23, an estimated $1.8 billion was spent on COVID–19 which was a decrease compared to the $6.4 billion spent in 2021–22.

The COVID–19 spending in this report excludes payments under the National Partnership on COVID–19 Response (NPCR) as well as any community or public health related spending on COVID–19 outside of the NPCR. For further information on this spending refer to the report Health system spending on the response to COVID–19 in Australia 2019–20 to 2022–23 (AIHW 2024b).

The following interactive data visualisation (Figure 14) can be used to see spending on COVID–19 by area of expenditure, sex and age group for the years 2019–20 to 2022–23. Data used to create the visualisation is available to download from the data tables.

Figure 14: Expenditure on COVID–19 by age group and sex, 2019–20 to 2022–23

This butterfly bar chart illustrates the distribution of spending on COVID-19 across age groups and sexes. In 2022–23, the most affected age group in terms of expenditure was the 70–74 years group and older for both males and females. However, in previous years, spending was highest among the 35–39 age group, with lower expenditures observed in both older and younger age groups.

This butterfly bar chart illustrates the distribution of spending on COVID-19 across age groups and sexes. In 2022–23, the most affected age group in terms of expenditure was the 70–74 years group and older for both males and females. However, in previous years, spending was highest among the 35–39 age group, with lower expenditures observed in both older and younger age groups.

The following interactive data visualisation (Figure 15) shows spending on COVID–19 by age group and area of expenditure for 2019–20 to 2022–23. Data used to create the visualisation is available to download from the data tables.

Figure 15: COVID–19 spending by area of expenditure and age group, 2019–20 to 2022–23

The bar chart shows total COVID-19 spending by sex and age group across broad and detailed areas of expenditure.  In 2022-23, for the 70-74 year age group, spending on PBS medications was the highest share of the spending.

The bar chart shows total COVID-19 spending by sex and age group across broad and detailed areas of expenditure.  In 2022-23, for the 70-74 year age group, spending on PBS medications was the highest share of the spending.

The costs identified as COVID–19 in the disease expenditure database are a component of a wider set of COVID–19 payments many of which are unable to be identified by age group and sex at this point in time. These payments include:

  • Australian Government payments to the state and territory health authorities under the National Partnership on COVID–19 Response (NPCR)
  • Australian Government Department of Health and Aged Care payments related to COVID–19 that are outside of the NPCR including programs for private hospitals, medical services, community health, pharmaceuticals, public health, administration, health research, health workforce, capital and aged care services
  • State and territory government health authority payments under the NPCR
  • Estimated costs for out-of-pocket payments for respirators, face masks and shields

The report Health system spending on the response to COVID–19 in Australia 2019–20 to 2022–23 (AIHW 2024b) examines Australia’s health system spending in response to the COVID–19 pandemic over the period 2019–20 to 2022–23. The report covers funding by the Australian Government, state and territory governments and individuals. It looks at spending by broad area: primary health care, hospitals, referred medical services, aged care services and other health services as well as detailed areas of expenditure within these broad areas. This report also compares Australia’s additional health expenditure and excess mortality during COVID–19 to other countries.

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