This report, the fourth comprehensive analysis of expenditures on health for Aboriginal and Torres Strait Islander peoples, examines expenditure in 2004-05 on health for Indigenous Australians and compares this with health expenditure for the rest of the Australian population. The report examines health resource distribution and funding by levels of government, the private sector, by region and by primary and secondary/tertiary health care. Estimates of health expenditure in 2004-05 are compared with estimates for previous years. The analyses presented here enable a better understanding of the different patterns of health service use by Aboriginal and Torres Strait Islander peoples.