Key trends in Aussie healthcare spending and the biggest opportunities they present for businesses 

Last year, Australians spent more on their healthcare needs than the 12 months prior, according to a new report by CommBank iQ. The average transaction size increased across all nine categories of spend, with the largest jumps seen in health insurance, pharmacy, and primary care. Other categories include optometrists, radiologists, dental services, medical specialists, and vets and pet services – the latter of which saw the smallest growth rate of 2.2%.

De-identified data from approximately 7 million Australians found an annual average healthcare spend of $3,082 per capita. This equates to a year-on-year increase of 7.9%. Industry-wide spending growth increased well beyond inflation, which rose 4.1% for the health group in the 12 months up to March 2025.

Cost of living affects spending habits

Young families and retirees account for the most significant proportion of overall healthcare spending. For over 75s, spending increased most for general practitioners and radiologists, both of which increased by 18%. Next were physiotherapists, chiropractors and osteopaths, with a spending increase of 17%.

By comparison, the rise in spending among those aged 18-24 years was much lower at 4.1%, which was below the annual inflation rate. This reflects a decline in real terms in spending. The only sector where spending for the youngest and oldest age groups was on par was health insurance, growing 12% for both age groups.

“We know that the cost of living is hitting young people the hardest,” says Peter Girvan, Head of CommBank Health.

The 18-24 age group spent 5% less on physiotherapists, chiropractors and osteopaths in the last 12 months, and 4% less on dental services and optometrists.

“While healthcare spending is not necessarily described as discretionary, when economic circumstances are difficult, people may delay seeking healthcare services.”

This is in line with data that has found declines in household spending on essentials such as petrol and utilities.

“While healthcare spending is not necessarily described as discretionary, when economic circumstances are difficult, people may delay seeking healthcare services.”
Peter Girvan, Head of CommBank Health

Innovative solutions for business

Businesses need to respond to the current economic climate by making the transaction spend as transparent and frictionless as possible. For dentists and optometrists, for example, having multi-merchant payment facilities can make household budgeting easier. In turn, this increases the likelihood of more frequent consultations.

“Innovation in the payments and claiming space for dental and optical businesses – utilising technologies like multi-merchants, family quoting and simple, fast processing – is crucial for families seeking affordable healthcare and a good experience when paying and gaining quotes for their medical needs,” explains Girvan.

“These advancements not only streamline access to necessary services, but also enhance financial clarity and efficiency, ensuring that families can prioritise their health without burden.”

Multi-merchant payment facilities enable a number of doctors or providers to be on the one system, rather than having different terminals on the front desk. And when the payment system integrates with Medicare, the claim can be processed and paid immediately. It is considerably faster; consumers are not out of pocket for long periods of time.

“Once a patient has been seen by their doctor, the key thing they are looking for is for their payment and claiming experience to be quick and simple. They don't want to wait for their transaction, and most importantly, they don't want to be out of pocket. So, practices are having to respond to this by offering integrated solutions where patients are only paying the gap payments in a fast and streamlined process that sees them spend as little time as possible at the admin desk.”

The use of technology also supports a seamless booking-in process.

"Once a patient has been seen by their doctor, the key thing they are looking for is for their payment and claiming experience to be quick and simple.”
Peter Girvan, Head of CommBank Health

New tool for pharmacies attracts new customers

After health insurance, pharmacy represented the largest spend at $14.4 billion. This represents an average annual spend of $710 per person. The average spend per purchase is $42, which was up 6% year-on-year from $40.

Online spending in pharmacy is outpacing that of in-store purchases, and online transactions are being made more frequently. An online purchase also tends to be much bigger: it averages $101, versus $41 for the in-store equivalent.

Nevertheless, in-store spending remains far more common. Last year, it accounted for more than 95% of total sales. Online purchases grew fastest in regional areas compared to metro locations, which is likely due to the convenience of delivery in rural areas.

CommBank’s Smart Health for Pharmacy was launched in March, and it allows pharmacists to take cardless cash payments that are integrated with their practice management software system. The new product comes with multiple benefits, as Girvan explains.

“Pharmacists can now offer customers the flexibility to pay for their goods remotely or in store, capturing sales across multiple channels. Offering remote payment options means they are not chasing outstanding payments, ensuring quicker cashflow, and it integrates with their Point of Sales systems, helping to manage their inventory better. It's also simple to set up, saving time on administration and reconciliation without disrupting workflows.”

“Pharmacists can now offer customers the flexibility to pay for their goods remotely or in store, capturing sales across multiple channels.”
Peter Girvan, Head of CommBank Health

It is also convenient for the customer, who can pay by card, phone or a wearable device, or even from the comfort of their own home.

“Like the person in the doctor’s clinic, someone who is not feeling that great doesn’t want to have to get dressed, get in their car and go to their local pharmacy. If they have an e-script and the pharmacy has our solution, the transaction can be facilitated through a secured payment gateway whilst that person remains at home. The goods will be delivered to them.”

“It’s great for the person feeling unwell, and the pharmacy gets paid before the actual stock is released, which improves cash flow. When it is integrated with their inventory system, it reduces administrative efforts when they’re doing stock inventory reconciliations.”

Girvan adds that Smart Health for Pharmacy is the only solution in market that offers the full end-to-end payment process. Feedback from pharmacists so far has been positive, with many crediting the new tool with attracting new business.