This report is the third comprehensive analysis of expenditures on health for Aboriginal and Torres Strait Islander peoples. It examines expenditures in 2001-02 on health for Indigenous people and compares it with health expenditures for the rest of the Australian population. It examines health resource distribution and funding by different levels of government, the private sector, by region and by primary and secondary/tertiary health care. It also provides some information on the level of expenditure on health-related welfare services expenditure for Indigenous Australians. Estimates of health expenditures in 2001-02 are compared with those published previously for 1998-99.