Australia’s total health spending reached 270.5 billion dollars in 2023–24, 10.1 percent of GDP. Governments funded 69 percent. Cancer led expenditure at 19.7 billion dollars, followed by cardiovascular and musculoskeletal diseases. Mental health ranked seventh in cost but second in health burden. Dementia and heart disease remained top killers.
Australia’s total health spending reached 270.5 billion dollars in 2023–24, marking a post-pandemic shift and equating to 10.1 percent of GDP, according to new Australian Institute of Health and Welfare (AIHW) data. Although nominal spending rose from 255.1 billion dollars in 2022–23, inflation-adjusted expenditures remained steady, indicating slower real growth. Governments funded about 69 percent of total spending—106.2 billion dollars from the federal government and 82 billion dollars from states and territories. However, health’s share of total government expenditure fell from 17.1 percent to 16.8 percent, reflecting slower growth compared with other sectors.
Of the total figure, 180.4 billion dollars was directed toward 17 identified disease and injury categories, up from 170.2 billion dollars the previous year. Another 73.9 billion dollars covered areas not linked to specific illnesses, such as public health programs and administrative costs. Cancer continued to top expenditure at 19.7 billion dollars, remaining Australia’s costliest and most burdensome disease since 2017–18. Lung cancer and non‑melanoma skin cancer each accounted for 1.87 billion dollars, followed closely by bowel and breast cancers. Cancer also caused 16.4 percent of the nation’s total disability‑adjusted life years (DALYs) lost, a measure of premature death and disability.
Cardiovascular diseases ranked second at 16.9 billion dollars, with coronary heart disease (3.8 billion), atrial fibrillation (2.1 billion), and stroke (2 billion) being major contributors. Musculoskeletal disorders came third at 16.3 billion dollars, driven mainly by osteoarthritis (4.8 billion) and back pain (4 billion). These three disease groups have consistently dominated spending throughout the past decade. Other major areas of expenditure included well care services such as dentistry and maternity care (13.9 billion), infectious diseases (13.3 billion), and gastrointestinal disorders (13.1 billion).
Mental health conditions and substance use disorders ranked seventh at 12.4 billion dollars, but their overall health burden was the second-highest, responsible for 14.8 percent of lost DALYs. Depression and anxiety were the most common and costly among mental health issues, while schizophrenia had the highest cost per patient, estimated at around 29,000 dollars.
The AIHW noted that high disease burden does not always correlate with high spending because prevention often involves actions beyond the health system, such as education or transport policy. Mortality data for 2023 showed coronary heart disease remained the leading cause of death among men (10.8 percent of deaths), while dementia was the leading cause among women (12.2 percent). Lung cancer and cerebrovascular disease followed, underscoring the persistent dominance of chronic illnesses in Australia’s health landscape.
