Health system spending on the response to COVID-19 in Australia 2019–20 to 2022–23

Total Australian Government spending through specific COVID–19 Department of Health and Aged Care programs (outside the NPCR) for the period 2019–20 to 2022–23, was estimated to be $27.7 billion in current prices of which close to one-third ($8.6 billion) related to the COVID–19 vaccine.

Of the $27.7 billion, $21.1 billion (76%) was spent in primary health care. Spending for referred medical services was $3.6 billion, while $2.5 billion was for aged care and the remaining $559 million on other areas including private hospital services, health administration, capital expenditure, health research and the education of health professionals.

Figure 7: Department of Health and Aged Care areas of spending for COVID–19, 2019–20 to 2022–23

Of the $21.1 billion spent on primary health care by the Department of Health and Aged Care, this included:

• $12.9 billion for public health activities including:
  • COVID–19 vaccine related ($7.6 billion)
  • masks and PPE ($2.4 billion)
  • rapid antigen test (RAT) subsidies ($0.8 billion)
  • respiratory clinic services ($0.6 billion)
  • prevention, preparedness and response ($0.6 billion)
  • primary health care development ($0.3 billion)
  • mental health ($0.3 billion)
• $4.9 billion for unreferred medical services (MBS) where the Australian Government bulk billed the majority of COVID–19 related appointments, a large portion of which were telehealth appointments to discuss suitability for COVID–19 vaccines, managing COVID–19 and treatment options. For a full list of MBS items classified to COVID–19 refer to the Technical notes section.
• $1.1 billion for PBS medications for the treatment of COVID–19, specifically nirmatrelvir + ritonavir (PAXLOVID); molnupiravir (LAGEVRIO).
• $0.9 billion for non-PBS subsidised COVID-19 treatments.
• $0.9 billion for other health practitioner services.
• $0.3 billion on community health services, with around half ($155.8 million) for mental health and suicide prevention and most of the remaining spending ($131.5 million) for primary health care development.

Figure 8: Department of Health and Aged Care primary health care spending, by area of spending and program, current prices, 2019–20 to 2022–23 ($ million)