New data shows, one tenth of the nations economic spending goes towards health

Australia spent nearly $181 billion on health in 2016/17, equal to about 10 per cent of all economic spending in the nation, new data reveals.

One tenth of the nations economic spending goes towards health, new data shows.

Australia spent nearly $181 billion on health in 2016/17, the Australian Institute of Health and Welfare's report into health expenditure states.

Released on Friday, the data shows health spending grew by 4.7 per cent in that time period compared to an average of 3.1 per cent in each of the five years prior.

"This was also the first time spending grew more than the decade average (4.6 per cent) since 2011/12,' AIHW spokesman Adrian Webster said in a statement on Friday.

Australia's overall health spending equates to more than $7,400 spent per person in 2016/17, up more than $200 per person than the previous year.

The data shows government spending on health grew by 6.8 per cent in 2016/17, above the decade average of 4.5 per cent.

Individuals, private health insurers and other non-government sources funded 31 per cent of health spending, equalling $56.5 billion.

About $30 billion of which came from individuals.

State and territory governments contributed 51 per cent of the total cost of public hospitals, down from 52.4 per cent the previous year.

The federal government's share has increased from 39.3 per cent in 2015/16 to 40.6 per cent the following year.

Health Minister Greg Hunt says a new national agreement will see more than $30 billion in additional funds go towards public hospitals in 2020/21.

"This means more hospital services, more doctors and more nurses, and increased funding every year for every state and territory," he said in a statement on Friday.

He is calling on Victoria and Queensland to sign up to the funding agreement to "stop disadvantaging" their patients.