Newly released government figures reveal that Australia’s health expenditure has climbed to 10% of its GDP, totaling $270.5 billion or about $10,037 per person.

This represents a 1.1% increase, with the Australian Institute of Health and Welfare (AIHW) reporting that the government itself contributed $188.2 billion to health spending.

Out of the total expenditure, over $180 billion was directed towards addressing disease and injury, with cancer being the most expensive ailment to manage.

The report pertains to the fiscal year 2023-24.

Australia allocated $19.7 billion for cancer treatment, while mental health conditions and substance abuse issues were identified as the second-largest health burdens.

Burden of disease, according to the AIHW, is defined as the impact of diseases and injuries on a population, combining years of healthy life lost due to ill health with the years of loss due to dying prematurely.

However, the growth in spending is lower than it has been in previous years, with the health system now adjusting to a “new normal” of spending after the COVID-19 pandemic.

In fact, government spending on health declined slightly, with investment on a per-person basis also dropping.

“Overall government spending decreased in 2023-24 due to lower public health spending in the post-pandemic period,” Geoff Callaghan from AIHW said.

Callaghan said those outside of government were footing the bill to a larger extent than ever before.

“Spending from non-government sources, including individuals and private health insurance providers, increased by 3.7 per cent in real terms, driving the overall increase in health expenditure,” he said.

The report also identified risk factors that were costing Australian taxpayers more money.

Conditions arising from being overweight or obese cost $7 billion to the Australian economy, with avoidable risk factors costing $38 million as a whole.