Australia spent nearly $181 billion on health in 2016-17, according to the latest Australian Institute of Health and Welfare report.
The report, Health expenditure Australia 2016-17, shows that health spending grew more in 2016-17 than at any time in the past 5 years.
4.7% increase in spending
‘In 2016-17, health spending grew by 4.7%, compared to an average of 3.1% each year over the past 5 years. This was also the first time spending grew more than the decade average (4.6%) since 2011-12,’ AIHW spokesperson, Dr Adrian Webster, said.
That equated to more than $7,400 spent per person – over $200 more per person than in the previous year.
Governments were the drivers of this growth.
70% of spending funded by governments
“In 2016-17, almost 70% of total health spending was funded by governments, with the federal government contributing about 41%, and state and territory governments 27%,” Dr Webster said.
Total government spending on health grew by 6.8% in real terms in 2016-17, above the decade average of 4.5%.
Tax-revenue spend on health was 27.1%
Due to the relatively rapid growth in government spending, the proportion of tax revenue spent on health increased in 2016-17 following a period of relative stability (rising by 0.8 percentage points to 27.1%).
The rise in total government spending was related to an increase in spending for public hospital services ($1.3 billion in
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