Primary health care

In 2021–22, $84.1 billion was spent on primary health care. Of this, the Australian Government spent $41.1 billion (48.9%), non-government entities $28.3 billion (33.6%), and state and territory governments $14.7 billion (17.5%) (Figure 27). 

This represented $8.3 billion increase (10.9%) in spending from 2020–21 in real terms. This growth in 2021–22 was mainly due to increased spending by the Australian Government of $6.3 billion (18.2%) and state and territory governments of $2.0 billion (15.9%) (Table 32).

Figure 27: Primary health care expenditure, by source of funds, constant prices (a), 2011–12 to 2021–22

The line graph shows that spending on primary health care by the Australian Government, state and territory governments and non-government sector over the decade from 2011–12 to 2021–22. Australian Government spending on primary health care was the highest of all sources, increasing in most years and reached $41.1 billion in 2021–22. Similarly, state and territory government spending on primary health care also increased over decade from $9.0 billion in 2011–12 to $14.7 billion in 2021–22. Non-government spending increased every year to $28.6 billion in 2018–19, then declined to $26.9 billion in 2019–20 before it bounced back to $28.3 billion in 2021–22.

 (a) Constant price health spending is in 2021–22 prices. 

Note: State and territory governments do not spend on unreferred medical services, benefit-paid pharmaceuticals and all other medications. 

Source: AIHW Health Expenditure Database (Table 32).

The increase in spending in real terms on primary health care in 2021–22 was attributable to increases on: public health (increased by $7.6 billion, including spending on COVID-19 vaccines, rapid antigen test kits and personal protective equipment products), community health and other (by $1.1 billion, including psychosocial program support), all other medications (by $0.2 billion), and unreferred medical services (by $0.1 billion, including spending on COVID-19 vaccine suitability assessment services) (tables A5 and A6).

Between 2011–12 and 2021–22, real growth increased by an average of 3.6% each year. The Australian Government spending on primary health care increased the most over the decade, by $14.8 billion, representing an average yearly real growth of 4.6%. 

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