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A new study, led by ICFHS researchers Dr Rafal Chomik, Dr Shona Bates and Adjunct Associate Professor Michael Wright, shows that primary care is receiving a declining share of Australia’s health funding, despite growth in overall national health expenditure.  The study, Two Decades of Primary Care Funding in Australia: Trends, Gaps, and Equity Implications, analysed national data from 2002–03 to 2022–23 and identified a steady shift away from community‑based care. Over this period, broad primary care’s share of total health spending fell from 36% to 33%, while spending on GP‑type services declined from 8% to 5.5%. Funding for enhanced primary care, supporting coordinated, team‑based care for people with complex needs remained largely unchanged at around 1%. Overall, the findings point to a reprioritisation of health spending, with hospital and specialist services growing faster than primary care.

The study highlights important implications for both efficiency and equity within the health system. Primary care is widely recognised as a cost‑effective approach to managing chronic disease and reducing avoidable hospitalisations. However, the analysis also shows that funding has become less progressive over time, with disadvantaged areas receiving a smaller relative benefit than a decade ago, and remote communities continuing to receive less GP funding per person.  The authors argue that recent reforms have not yet altered the overall funding pattern and call for clearer policy targets and stronger monitoring to ensure primary care is adequately funded and equitably distributed.