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How Much Do Australians Spend on Health?

Health Research
Last Updated Aug 21, 2020

Health is a multi-billion dollar business in Australia. According to a new report, we personally spend $28.6 on hospitals, dentists and medication. And we hand over an extra $21 billion on health insurance. Every year.

The latest data, from the Australian Institute of Health and Welfare, also shows that our out-of-pocket spending on health is bigger than ever before. And it's growing at an alarming rate.

In fact, we have the third-highest dependence on out-of-pocket payments (out of the world's wealthiest countries).

The government's health expenditure report is certainly a sobering one.

Australia's health landscape
Source: health.gov.au

Why is it a problem?

One newspaper article commented on the stats, saying: "It's topical and problematic for a number of reasons. Health is expensive, complex and highly charged, so the surrounding politics are necessarily fraught.

"Rising out-of-pocket costs of health are a genuine concern because it deters some people from seeking health care when they need it."

In fact, between 2014 and 2015, one out of every 20 people didn't go to the doctor because they couldn't afford it.

Even more frightening, people are deterring treatment for mental illness because they can't afford to see a professional - or access therapy or medication.

What about our spending on natural therapies?

That's another interesting statistic. We spend around $9.3 billion a year on vitamins and supplements - as well as other non-prescription treatments.

And another $3.9 billion goes towards natural therapies including Traditional Chinese Medicine, naturopathy and chiropractic.

So it's pretty clear Australians value their health. But the question is - will we be able to continue affording it in the future?

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Originally published on Dec 10, 2018

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