Mental health servicesin Australia
Tables (1.88MB XLS)
This section reviews the available information on recurrent expenditure (running costs) for mental health‑related services. Health expenditure (what was spent) and health funding (who provided the funds) are distinct but related concepts essential to understanding the financial resources used by the health system. Data on expenditure and funding, calculated in both current and constant prices, are derived from a variety of sources, as outlined in the data source section. Constant prices are adjusted to 2014–15 levels, including 2015–16 Australian Government Medicare expenditure and mental health-related medications subsidised under the PBS and RPBS expenditure data. Further information on health expenditure is available in Health expenditure Australia 2014–15 (AIHW 2016).
Data in this section were last updated in February 2017.
The national recurrent expenditure on mental health-related services in 2014–15 was estimated to be around $8.5 billion; an average annual real increase of 2.9% between 2010–11 and 2014–15. Overall, national expenditure on mental health-related services increased from $343 per person in 2010–11 to $361 per person during 2014–15, adjusted for inflation (Table EXP.32)
Of the $8.5 billion spent nationally in 2014–15, 59.6% ($5.1 billion) was funded by state and territory governments, 35.7% ($3.0 billion) by the Australian Government and 4.8% ($408 million) by private health insurance funds. This distribution has remained relatively stable over time, with 60.8% of national spending coming from state and territory governments, 35.4% from the Australian Government and 3.8% from private health insurance funds in 2010–11 (Table EXP.32).
Funding from the Australian Government for mental health-related services (adjusted for inflation) increased by an average annual rate of 3.6% over the period 2010–11 to 2014–15, while funding from state and territory governments increased by an average annual rate of 2.0% (Table EXP.32).
The National Mental Health Commission's 2014 Review of Mental Health Programmes and Services (NMHC 2014) used a broader methodology to estimate Australian Government expenditure on mental health. The methodology included broader mental health-related costs, such as the Disability Support Pension and Carer Payment and allowances. The National Mental Health Commission estimated Australian Government mental health-related expenditure in 2012-13 to be $9.6 billion, compared to $2.8 billion using the methodology employed in this publication.
AIHW (Australian Institute of Health and Welfare) 2016. Health expenditure Australia 2014–15. Health and welfare expenditure series no. 57. Cat. no. HWE 67. Canberra: AIHW
NMHC (National Mental Health Commission) 2014. The national review of mental health programmes and services. Sydney: NMHC.