Economic report reveals most state governments face growth in health spending of between 15% and 20% out to 2050.
Economic report reveals most state governments face growth in health spending of between 15% and 20% out to 2050. Patrick Gorbunovs

Nation set to spend increasing amount on health and aging

THE amount Australia's governments spend on health and aging services could nearly double by 2050, analysis of government expenditure by Deloitte Access Economics revealed on Tuesday.

It showed if current trends continue expenditure on the health and aging sectors would rise to nearly half of all government spending by 2050.

The paper, completed for the Business Council of Australia, also outlined how the cost of health and aging services would likely see collective government deficits of up to $70 billion by 2050, and rising government debt levels.

It found the rising expenditure on health and aging would not reverse, there was no major efficiency or effectiveness strategy in place or planned, and states would face a particular funding challenge in the next 40 years.

Most state governments face growth in health spending of between 15% and 20% out to 2050, while the federal government faces growth of about 8% over the next 37 years.

The BCA said the paper was "further impetus" backing its calls for the federal government to undertake an independent review of government and the long-term structure of its budget.

"Health is a more significant proportion of the government budgets for the states and territories than for the Australian Government (due to the additional funding responsibilities of the Australian Government)," the report reads.

"Nevertheless, the Australian Government is projected to see a similar proportionate rise in health expenditure as a proportion of total expenditure (excluding interest payments) to the states and territories, in the order of more than 50%.

"In all of the states and territories, although not the Australian Government, these movements are driven by expenditure in acute care institutions."



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