Summary
Spending by disease and injury increased by $13 billion to $172.3 billion in 2022–23, up from $159.3 billion in 2021–22. Of the $172.3 billion, close to two-thirds was for hospital services ($110.4 billion), over one-quarter for primary health care ($46.7 billion) with the remaining spending for referred medical services ($15.2 billion).
In 2022–23 the highest spending was for cancer ($18.9 billion), followed by cardiovascular diseases ($16.2 billion), and musculoskeletal disorders ($15.9 billion). Cancer also had the highest burden, or human cost of disease in 2023. Second highest in terms of disease burden was mental health conditions and substance use disorders.
Spending on cancer more than doubled from $9.3 billion in 2013–14 to $18.9 billion in 2022–23 and has been the highest ranked disease group in terms of spending since 2014–15 accounting for around 10% of spending each year. Over the period 2013–14 to 2022–23, the largest increase in cancer spending was observed for prostate cancer, non-melanoma skin cancer, breast cancer and bowel cancer.
Cancer, cardiovascular diseases and musculoskeletal disorders, were the top 3 disease groups in all but one year over the period 2013–14 to 2022–23, accounting for around one-third of spending each year.
Spending on chronic conditions (often referred to as long-term health conditions), accounted for around $82 billion in 2022–23, just under half (48%) of all disease spending in 2022–23.
The conditions within disease groups with the highest spending in 2022–23 were injuries from falls ($5.1 billion), osteoarthritis ($4.9 billion) and back pain and problems ($3.9 billion). This was followed by spending on coronary heart disease ($3.8 billion) and dental caries ($3.3 billion).
In 2022–23, there was higher spending for females ($84 billion) than males ($76 billion) and spending peaked in the 70–74 year age group for both males and females.
There was $13.3 billion spent on well care in 2022–23. The majority of this spending (82%) was for routine dental checkups and cleaning and pregnancy and postpartum care.
This report uses a range of modelling techniques to apportion health spending to population groups based on age and sex, and to Australian Burden of Disease Study (ABDS) groups and to conditions within those groups. Whilst findings in this report are based on estimates (rather than direct observations) these data provide important insights into the nature and drivers of health spending, such as how an ageing population affects health spending.