2026-03-17
9 min read
Finance and Treasury
We compiled health spending per capita across all states and territories. The gaps are stark: the ACT spends $4,200 per resident while Queensland spends $2,800. What explains the difference?
Health spending varies enormously across Australian jurisdictions. The ACT leads at $4,200 per resident, followed by the NT at $3,900 (driven by remote service delivery costs). At the other end, Queensland spends $2,800 per capita and Western Australia $2,950. The national average sits at $3,250.
$1,400
gap between highest and lowest per capita
Three factors explain most of the variation: population density (remote health delivery costs 3-5x more per patient), age demographics (older populations require more health spending), and state policy choices about public vs private provision. The ACT's high figure reflects both its older demographic profile and its decision to operate Canberra Hospital as a tertiary referral centre serving southern NSW.
“There are no bulk billing GPs within 40 minutes of my home. I pay $90 to see a doctor and get $39 back. For a family of five, we just don't go unless it's serious.”
— Rural family, Western Victoria, submission to GP workforce inquiry
Across all states, hospital services consume 55-65% of health budgets. Preventive and community health receives 5-8%. Mental health averages 7.5% nationally but ranges from 6.1% (QLD) to 9.2% (VIC). Victoria's higher mental health allocation reflects its Royal Commission-driven reform program.
“We keep pouring money into the hospital end while underfunding the community services that keep people out of hospital. The maths doesn't work.”
— Australian Medical Association President, National Press Club address (Feb 2026)
Higher spending doesn't necessarily mean better outcomes. NSW spends $3,100 per capita (below the national average) but has the shortest emergency department wait times and lowest preventable hospitalisation rates of any mainland state. Queensland spends less than NSW but has significantly worse rural health outcomes. The correlation between spending and outcomes is weaker than the correlation between workforce distribution and outcomes.
“I waited 11 months for a specialist appointment. Eleven months wondering if the lump was cancer. That's not a health system — that's a lottery.”
— Karen, regional NSW, healthcare consumer survey
Sources & Methodology
AIHW, Health Expenditure Australia 2024-25
State and territory budget papers 2025-26 (all jurisdictions)
Productivity Commission, Report on Government Services 2026, Chapter 12
YourGov analysis of AIHW and state budget data
Read our full methodology →