Facts and Figures
Australian Health and Ageing System - The Concise Factbook - March 2012
The Concise Expenditure Factbook presents expenditure statistics on the Australian health and ageing system.
The March 2012 edition of the Concise Factbook contains updated information on health and ageing expenditure.
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The Concise Expenditure Factbook presents expenditure statistics on the Australian health and ageing system.
It contains updated information as at 1 March 2012. Data sources, category definitions and a glossary of terms are provided at the end of this publication.
A full list of acronyms and expanded glossary can be found online at <http://www.health.gov.au/internet/main/publishing.nsf/Content/Glossary>.
For further information on the Concise Expenditure Factbook, please contact:
Email: PESInputs@health.gov.au
or write to:
The Editor
Health and Ageing Factbook (MDP 145)
Economic and Statistical Analysis Branch
Department of Health and Ageing
GPO Box 9848
Canberra ACT 2601
Table of Contents
Table 1: Australian Government health and ageing expenses and appropriations.
Table 2: Health expenditure estimates, by area of expenditure and source of funds, 2009-10.
Table 3: Health and ageing expenditure as a percentage of GDP and total national budget.
Table 4: Real total health spending per capita, 2005-06 to 2009-10.
Chart 1: Portfolio of Health and Ageing programs: Australian Government estimated expenses by outcome and major program, 2011-12.
Chart 2: Portfolio of Health and Ageing programs: Australian Government estimated expenses by outcome and major program, 2012-13.
Sources
Category Definitions
Glossary
Table 1: Australian Government health1 and ageing expenses and appropriations ($ million)2
Funding source and area of expenditure | Actual expenses 2009–10 ($m) | Actual expenses 2010–11 ($m) | Estimated expenses3 (at 2011-12 PAES) 2011–12 ($m) | Estimated expenses3 (at 2011-12 PAES) 2012–13 ($m) |
|---|---|---|---|---|
Portfolio of Health and Ageing programs | ||||
| Funded through the portfolio | ||||
| Medicare Benefits Schedule3 | 15,386.5 | 16,266.2 | 17,094.2 | 17,529.2 |
| Australian Health Care Agreements | - | - | - | - |
| Pharmaceutical Benefits Scheme3 | 8,342.0 | 8,774.9 | 9,416.6 | 9,764.4 |
| Aged and community care3 | 7,624.0 | 8,430.6 | 9,569.9 | 11,087.1 |
| Private Health Insurance Rebates4 | 4,331.8 | 4,727.6 | 4,727.4 | 3,933.1 |
| Health other1,3 | 5,662.1 | 6,491.7 | 7,823.7 | 7,655.8 |
| Departmental funding | 889.0 | 1,044.0 | 1,164.3 | 1,020.8 |
| National Partnership Payments5 | ||||
| National Healthcare Agreement/National Reform Agreement6 | 11,224.2 | 11,990.5 | 12,695.8 | 13,522.3 |
| National Partnerships (health) | 814.5 | 1,892.2 | 2,778.2 | 1,915.9 |
| National Partnerships (aged and community care) | 1,262.3 | 1,360.0 | 1,828.5 | 734.0 |
| Sub totals | ||||
| Portfolio of Health and Ageing programs (health only) | 46,465.2 | 50,989.7 | 55,487.4 | 55,139.7 |
| Portfolio of Health and Ageing programs (ageing only) | 9,071.2 | 9,988.0 | 11,611.1 | 12,022.9 |
| Portfolio of Health and Ageing (total) | 55,536.4 | 60,977.7 | 67,098.5 | 67,162.6 |
Department of Veterans’ Affairs (DVA) Programs | ||||
| Funded through DVA | ||||
| Health | 3,762.3 | 3,821.9 | 3,856.1 | 3,890.4 |
| Aged and community care | 1,299.9 | 1,447.1 | 1,612.3 | 1,675.2 |
| Departmental funding | 128.8 | 130.7 | 130.1 | 125.5 |
| National Partnership Payments5 | ||||
| Health | 14.3 | - | - | - |
| Aged and community care | 17.6 | 18.0 | 17.8 | 7.1 |
| DVA programs total | 5,222.8 | 5,417.7 | 5,616.2 | 5,698.2 |
| Other Australian Government health and aged care7 | 1,434.6 | 1,432.6 | 1,373.6 | 1,379.9 |
Totals | ||||
| All health | 51,779.5 | 56,350.4 | 60,822.2 | 60,511.5 |
| All ageing | 10,414.3 | 11,477.6 | 13,266.2 | 13,729.2 |
| All health and ageing | 62,193.8 | 67,828.0 | 74,088.4 | 74,240.7 |
| Budget papers’ “Health Function”8 | 51,426.0 | 57,240.0 | 59,858.0 | 61,584.0 |
Notes:
1. ‘Health’ excludes sport and recreation programs which were transferred to the portfolio of Prime Minister and Cabinet in October 2010.
2. Australian Government appropriated expenses, revenue from other sources, unfunded expenses, expenses not requiring appropriation in Budget year and operating surplus/deficit. Excludes departmental expenses.
3. As at the 2011-12 Portfolio Additional Estimates released February 2012. PBS refers to administered special appropriations only (see 2011-12 Portfolio Additional Estimates Statements, page 38). ATO and Medicare figures are 2011-12 unpublished Budget figures.
4. Excludes amounts allocated to the Contingency Reserve for 2011-12 for the financial impact of premium growth (for April-June 2012). The Private Health Insurance Rebates delivered through the tax system (for example, $201m in 2009-10) are included in ‘Other Australian Government Health’.
5. Under the Federal Financial Relations Framework, Treasury is appropriated for specific purpose payments to the states and territories for Department of Health and Ageing and DVA (respectively) programs which are the policy responsibility of relevant portfolio Ministers. The Framework has been implemented in stages from 1 January 2009. Expenditure data updated as of 2011-12 Portfolio Additional Estimates Statements.
6. All states and territories signed a new Health Reform Agreement. Funding under this agreement commenced from August 2011.
7. Includes private health insurance rebates paid through the Australian Tax Office (ATO), the ATO’s Medical Expenses Tax Offset, and Medicare Australia’s health and aged care related departmental expenses.
8. Not directly comparable to the ‘All health’ figure in the table because of slightly different definitions and scope, such as differences in the methodology of calculating the Budget papers ‘Health Function’.
Table 2: Health expenditure estimates, by area of expenditure and source of funds, 2009-10 ($b current dollars)1
| Area of expenditure | Australian Government | State and local government | Individuals | Other private | Total2 |
|---|---|---|---|---|---|
| Hospitals | 17.2 | 19.9 | 2.2 | 7.1 | 46.3 |
| Medical services | 16.6 | - | 2.6 | 2.0 | 21.2 |
| Other health practitioners | 1.3 | - | 1.6 | 0.8 | 3.7 |
| Benefit paid pharmaceuticals | 8.0 | - | 1.5 | - | 9.6 |
| Other medications | 0.4 | - | 6.2 | 0.1 | 6.7 |
| Dental services | 1.3 | 0.6 | 4.7 | 1.1 | 7.7 |
| Community health | 0.9 | 4.7 | 0.1 | 0.1 | 5.9 |
| Other recurrent | 6.6 | 3.8 | 2.8 | 2.0 | 15.2 |
| Medical expenses tax offset | 0.5 | .. | -0.5 | .. | - |
| Capital | 0.1 | 2.8 | .. | 2.1 | 5.0 |
| Total health expenditure2,3 | 52.9 | 31.9 | 21.2 | 15.3 | 121.4 |
| Total health expenditure (%) | 43.6 | 26.3 | 17.5 | 12.6 | 100.0 |
Notes:
1. AIHW, Health Expenditure Australia 2009-10, data cubes (March 2012).
2. Totals may differ from sum of components due to rounding.
3. Information from this table is not directly comparable to Table 1, due to differences in definitions.
Table 3: Health and ageing expenditure as a percentage of GDP and total national budget
| Spending indicator | 2007–08 (%) | Latest year (%) |
|---|---|---|
| Portfolio of Health and Ageing programs1expenditure as percentage of Australian Government (national) budget (2011–12)2 | 16.9% | 18.1% |
| Total health expenditure as percentage of GDP (2009–10) | 8.7% | 9.4% |
| Australian Government health funding as percentage of GDP (2011-12)2,3,4 | 4.5% | 4.9% |
| State, territory and local government health funding as percentage of GDP (2009–10)3 | 2.2% | 2.5% |
1. Includes programs which are the policy responsibility of the Minister for Health and Ageing and now funded through appropriations to Treasury under the Federal Financial Relations Framework.
2. 2011-12 figures are estimated expenses as at the Portfolio Additional Estimates Statements released February 2012.
3. Comparison between Australian Government health funding in 2011-12 and state and local government health expenditure in 2009-10 should be made with caution, due to definitional differences in data sources and reference years.
4. Includes funding by the Health and Ageing portfolio, Treasury, Medicare Australia, Department of Veterans’ Affairs and the Australian Taxation Office.
Table 4: Real total health spending per capita, 2005–06 to 2009–10 (constant 2009-10 prices)
 | 2005-06 | 2006-07 | 2007-08 | 2008-09 | 2009-10 1 |
|---|---|---|---|---|---|
| Constant $ | 4,710 | 4,906 | 5,140 | 5,410 | 5,479 |
| Growth (%) | 1.3% | 4.1% | 4.8% | 5.3% | 1.3% |
1. Sourced from AIHW, Health Expenditure Australia 2009-10.
Sources
Table 1.Department of Health and Ageing (DoHA) and portfolio agencies: Annual Reports (2009-10 and 2010-11) and 2011-12 Portfolio Additional Estimates Statements. DVA: Annual Reports (2009-10 and 2010-11) and 2011-12 Portfolio Additional Estimates Statements. Department of the Treasury: 2011-12 Portfolio Additional Estimates Statements. DoHA: unpublished. ATO: Annual Reports, Tax Expenditures Statements, Taxation Statistics. Medicare Australia: unpublished.Table 2.AIHW, Health Expenditure Australia 2009-10, data cubes (February 2012).
Table 3.First row: Annual Reports of DoHA, Department of Health and Ageing portfolio agencies; ABS Australian National Accounts. Second and fourth rows: AIHW, Health Expenditure Australia 2009-10, Health and welfare expenditure series no.46. Cat. no. HWE 55. Canberra: AIHW. Third row: Annual Reports of DoHA, Department of Health and Ageing portfolio agencies; DVA, ATO; ATO Australian Taxation Statistics; Medicare Australia (unpublished); ABS Australian National Accounts.
Table 4.AIHW, Health Expenditure Australia 2009-10, Health and welfare expenditure series no.46. Cat. no. HWE 55.
Chart 1.Portfolio of Health and Ageing 2011-12 Portfolio Additional Estimates Statements and The Department of Treasury 2011-12 Portfolio Additional Estimates Statements.
Chart 2.Portfolio of Health and Ageing 2011-12 Portfolio Additional Estimates Statements and The Department of Treasury 2011-12 Portfolio Additional Estimates Statements.
Category definitions
Table 1. - ‘Pharmaceutical Benefits Scheme’ includes Section 100 pharmaceuticals.
- ‘Department of Veterans’ Affairs (Health)’ includes hospital services (e.g. Repatriation Private Patients Scheme), Repatriation Pharmaceutical Benefits Scheme, Local Medical Officer scheme, rehabilitation services, etc.
- ‘Department of Veterans’ Affairs (Aged and community care)’ includes residential aged care, and home and community care services.
Table 2. - ‘Other private’ sources of funds includes private health insurers (net of the Australian Government rebates), compulsory motor vehicle third party insurers, workers’ compensation insurers, and other non-government sources.
- ‘Hospitals’ excludes dental, community health, public health services, patient transport services, and research undertaken by public hospitals. Can include services provided off the hospital site such as hospital-in-the-home, dialysis, or other services. Includes Highly Specialised Drugs Program expenditure.
- ‘Medical services’ includes Australian Government benefits paid through Medicare for GP, specialist, optometrist, diagnostic imaging, pathology and other medical services; expenditure on bulk-billed GP and specialist services for veterans; payments to support medical practice in Australia (e.g. grants to Divisions of GPs, practice incentives etc).
- ‘Other health practitioners’ includes health professionals other than GPs, specialists and dentists (e.g. physiotherapists).
- ‘Other medications’ includes pharmaceuticals for which no government benefit was paid (e.g. non-prescription medicines, prescription medicines priced below the patient co-payment threshold, etc).
- ‘Medical Expenses Tax Offset’ is the reimbursement through the taxation system of 20% of net medical expenses above a specified annual threshold.
Table 3. - ‘Australian Government health funding’ includes health funding by the portfolio of Health and Ageing, Medicare Australia, Department of Veterans’ Affairs and the Australian Taxation Office. Note: This definition is different to the AIHW’s definition of Australian Government expenditure on health in Health expenditure Australia 2009-10.
Charts - ‘Health and Ageing portfolio estimated actual expenses and appropriations’ includes Australian Government appropriations and expenses only. Excludes revenue from other sources.
Glossary
Appropriation - an authorisation by Parliament to spend moneys from the Consolidated Revenue Fund for a particular purpose. Applies to current budget year and budget forward estimates.
National Healthcare Agreement / National Health Reform Agreement (Public Hospital Funding) - Australian Government funding to the states and territories to support free public hospital services is provided through agreements between the Australian Government and each state and territory government.
Commencing in 2008, there have been four agreements with each agreement superceded by the previous one. The agreements include: the Australian Healthcare Agreement (2003-04 to 2008-09); the National Healthcare Agreement (2009-10 to 2011-12); the National Health and Hospitals Network Agreement (2011-12 to 2013-14); and the National Health Reform Agreement signed on 2 August 2011(2011-12 onwards).
Consolidated Revenue Fund - the principal operating fund of the Commonwealth Government, financed by pooling Commonwealth revenue from taxation, fees and other sources.
Current $ (prices) - the dollar value expressed in terms of the prices in the year of expenditure.
Constant $ (prices) - the dollar value expressed in terms of the prices in a chosen (or reference) year, i.e. adjusted to remove the effects of price inflation between the year of expenditure and the chosen (or reference) year. The change between figures based on constant dollars measures the ‘real’ increase or decrease.
Gross domestic product (GDP) - the total economic value of goods and services produced in a country (including foreign investment and earning in Australia and excluding income from investments and earnings by Australians overseas).
Medicare Benefits Schedule (MBS) - services eligible for Australian Government benefits under the Medicare Benefits Schedule. Includes GP and specialist attendances, obstetrics, operations, anaesthetics, pathology, diagnostic imaging, selected optometry, dental and other medical and allied health services.
Pharmaceutical Benefits Scheme (PBS) - the provision, funded by the Australian Government, of subsidised or free prescription pharmaceuticals provided through community pharmacies (under Section 85 of the National Health Act 1953) or through alternative arrangements (under Section 100 of the National Health Act 1953).
A full list of acronyms and expanded glossary can be found online at <http://www.health.gov.au/internet/main/publishing.nsf/Content/Glossary>.
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