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Australia's $290.7 billion health spending: where does it go?

In plain English

Slide: mental health conditions and substance use disorders ranked 2nd for disease burden in 2024, 5th for standard spending and 3rd for expanded spending in 2024-25. Rank does not measure a funding gap.
Mental health and substance use disorders: 2nd for disease burden, 5th for standard spending, 3rd when community and public health programs are added. Source: AIHW, Health system spending on disease and injury in Australia 2024–25 (14 October 2026).

Australia spent an estimated $290.7 billion on health in 2024–25, according to provisional AIHW figures. That covers hospitals, GPs, medicines, dental care and more, paid for by governments, insurers and individuals. The video compares spending with disease burden, which measures healthy years lost through illness or early death. Mental health conditions and substance use disorders ranked second for disease burden in 2024, but fifth for standard spending in 2024–25. When disease-related community and public health programs are included, they rise to third. That reflects wider counting, not new funding.

Slide listing differences AIHW measures: remoteness, area disadvantage (SEIFA quintiles) and Indigenous status for hospitalisations only. Area measures are not personal income and do not measure unmet need.
What the report compares, and what it cannot measure. Source: AIHW (14 October 2026).

A gap between spending and burden raises questions, but it does not prove underfunding. Treatment costs, prevention and action outside health care also matter. The new report also compares spending by remoteness, area disadvantage and First Nations hospitalisations. Those differences do not tell us who missed care or could not afford it. The real public health question is whether spending meets need.

Key numbers

  • $290.7 billion: estimated total health spending in Australia, 2024–25 (provisional).
  • 2nd: rank of mental health and substance use disorders for disease burden, 2024.
  • 5th, or 3rd: their rank for standard disease spending in 2024–25, rising to 3rd when disease-related community and public health programs are included.

Sources

These are the sources named in the video and its description.

  1. AIHW: Health expenditure Australia 2024–25 (14 October 2026)
  2. AIHW: Health system spending on disease and injury in Australia 2024–25 (14 October 2026)
  3. AIHW: Spending compared with disease burden

Last checked: 30 October 2026. This is general information, not medical advice.

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