Australian Hospital Spending Rises Faster Than Primary Care Funding
14 Oct 2026
Governments and private sources spent $103.3 billion on hospital services, compared with $52.6 billion on primary care. Hospital spending increased by 4% after adjusting for inflation, while primary care spending grew by 1.2%.
Government funding for general practice remained almost unchanged. Spending on unreferred medical services, most of which are provided by GPs, rose only slightly from $12.23 billion in 2023–24 to $12.24 billion in 2024–25, in inflation-adjusted terms.
Royal Australian College of General Practitioners (RACGP) President Dr Michael Wright said hospital spending was growing much faster than primary care investment. He also noted that the figures do not capture major bulk-billing incentive changes introduced in November 2025.
The AIHW reported that chronic diseases accounted for 55% of health spending linked to disease and injury. Cancer received the largest share, followed by cardiovascular and musculoskeletal conditions.
Dr Wright said greater investment in general practice could strengthen prevention, help people manage ongoing health conditions and reduce pressure on hospitals.
Source: Australian Institute of Health and Welfare – Health Expenditure Australia 2024–25