Young Gen Z Australian adults aged between 18-24 years old increased spending on health services by 3.1 per cent over the last year, a rate below annual inflation for the Health Consumer Price Index of 4.1 per cent, representing a decline in spending in real terms amid cost of living pressures.
Over the last year, 18 to 24-year-olds wound back spending on physiotherapy, chiropractors and osteopaths (down 5 per cent on the prior year), dental and optometry (down 4 per cent) which contributed to an overall decline in health spending in real terms.
Older Gen Zs and younger millennials between 25-34 years increased their health spending by 6.4 per cent while millennials aged between 35-44 increased spending by 7.8 per cent over the last year. Gen X aged between 45-54 spent less than the older millennial group increasing spending by just 7.5 per cent. Older Australians drove spending higher with those aged between 65-74 increasing by 8.9 per cent over the same period and over 75s spending 12.6 per cent more than the previous year.
The findings were released today in the inaugural CommBank Health Insights report which uncovers trends in healthcare spending. For the first time, the report uses CommBank iQ de-identified healthcare transactions from approximately 7 million Australians, providing a comprehensive overview of how consumer spending on healthcare has evolved over the past year with Australia's largest transactional data set.
Haseda Fazlic, Executive General Manager Commercial Banking, CBA said: "The CommBank Health Insights Report highlights the healthcare spending sacrifices that younger generations are making while showing the growing share of healthcare in household budgets for older generations in particular. Older Australians and young families are doing their best to prioritise their health, with significant increases in spending over the last year. At the same time, we can see that younger Australians are still investing in their health while aiming to minimise their spending in a challenging cost of living environment.
"The findings over the last year come ahead of the Federal Government's additional commitments to strengthening access to health services with additional Medicare funding."
Key findings include:
- General Practitioners benefiting from more frequent visits: Almost six in ten Australians visited a GP in the past year with an average of 5.4 visits per person. Overall, spending on GP visits increased by 12.7 per cent on the previous year with an average annual spend of $523 per person, reflecting increased demand and rising costs coupled with private billing.
- Pharmacies booming with ecommerce driving growth: Pharmacy grew at 9.9 per cent with an average spend of $710 per person. Online purchases were up by 28 per cent, compared to 9 per cent growth for in-store. While in-store remains more common, accounting for over 95 per cent of total sales in the last year, those buying online spent significantly more with each purchase. The average purchase size was $101 for an online basket, compared to $41 for in-store.
- Specialists and allied health see strong growth: Specialists saw growth of 9.1 per cent at $846 per person. Radiology increased by 8.2 per cent with $459 annual spend while physios, chiropractors and osteopaths grew by 7 per cent with an average spend of $429 per person.
- Health insurance moderating: While maintaining a large proportion of overall health spend with an average $3,088 per person, health insurance spend experienced more moderate growth than other categories at 6.5 per cent.
- Dental growing through repeat visitors: While only 1 in 3 Australians regularly visit the dentist, those that do are coming back more regularly at 2.4 times per year and paying $321 on average per visit, contributing to overall growth of 5.5 per cent on the previous year. Spending growth on dental is led by older generations, with over 75s lifting by 14 per cent. 18-24 year olds were the only group to trim their dental spend, down by 4 per cent.
- Vets only category to decline overall: Medical spending on furry friends increased by 2.2 per cent at an average of $873 per person, the only category to see a decline in real terms.
"It is encouraging to see Australians visiting their GPs and dentists more regularly and attending specialists and allied health appointments when needed. With an ageing population, it is becoming increasingly important that providers continue to meet the needs of older patients while ecommerce is offering greater opportunities to meet needs for pharmaceutical care for those in regional and remote communities in particular," Ms Fazlic said.
"Understanding demographic spending patterns can help those in the health industry adapt and make more informed decisions to better meet the needs of their customers."
About the research
All data is sourced from CommBank iQ, that uses Australia's largest transactional dataset to evaluate spending behaviours. This includes online and in-store transactions from approximately 7 million Australians.
This analysis is based on CommBank iQ data covering spending in eight healthcare sectors from 01 April 2024 to 31 March 2025, including: general practice, dental services, medical specialists, radiology, pharmacies, Physio, Chiro and osteo, vets and pet services, and health insurance. All figures are spend per capita rather than total consumption.
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