National Allergy Rates Climb Costing $18.9b In Financial Losses

Murdoch Children's Research Institute

More than eight million Australians report living with allergic disease, leading to billions in mounting costs and an unprecedented demand for allergy services, a new report reveals.

The Deloitte Access Economics report, Costly Reactions: The economic and social cost of allergic disease in Australia, has found the annual financial burden has reached $18.9 billion, up from $7.8 billion reported in 2007, and $44.6 billion in wellbeing losses. The report was developed with the Australasian Society of Clinical Immunology and Allergy (ASCIA) and the National Allergy Council (NAC).

Maria Said AM, Co-chair of the NAC and CEO of Allergy & Anaphylaxis Australia (A&AA) said, "For too long, the everyday impact of allergic disease has been invisible. Allergies don't just disrupt health - they reshape lives. Millions of families are living with constant vigilance and fear. "This report gives us the clearest evidence yet of how allergic disease affects Australians - clinically, socially and economically."

Allergic disease is one of Australia's fastest growing chronic conditions with cases of hay fever (24 per cent), food allergy (7 per cent) and drug allergy (5.2 per cent) among the most common, according to new research by the National Allergy Centre of Excellence (NACE) hosted at Murdoch Children's Research Institute (MCRI), which helped underpin The Costly Reactions report.

Professor Kirsten Perrett, Director of the NACE and MCRI Population Allergy Group Leader, said possible drivers of the increase in allergic disease were environmental changes such as urbanisation and air pollution, modern lifestyle factors like sanitisation and increased awareness.

Professor Kirsten Perrett 2

Image: Professor Kirsten Perrett

"Australia has some of the highest allergy rates globally, including the world's highest reported rate of infant food allergy, affecting one in 10 babies," she said. "The burden isn't just physical; for many families allergic disease disrupts daily life and brings financial and emotional strain. "Through national research collaboration, we're now better placed than ever to understand these complex conditions and deliver more targeted, effective responses."

Key findings of the report include:

  • About 8.2 million Australians (30 per cent) report living with allergic disease, up from 1 million (19.6 per cent) reported in 2007
  • Many people - and households - manage at least two allergic conditions at the same time
  • The annual financial cost of allergic disease is about $18.9 billion and $44.6 billion in wellbeing losses
  • The average financial cost is $2,318 and a further $5,470 of non-financial costs per person living with allergic disease
  • The risk of anaphylaxis has a significant impact on health and wellbeing of both the individuals and their families due to anxiety, isolation and poor mental health
  • 9 per cent of those affected are of working age, with 80 per cent of financial costs linked to lost productivity
  • Food allergy peaks in childhood, hay fever in teens and young adults and drug allergy in older adults
  • Ongoing investment in NAC and NACE programs is essential to reduce the burden of allergic disease

The report confirmed allergic disease was "a significant public health burden" in Australia and future work should focus on clinical and public health programs that reduce the cost of allergies, upskilling health professionals, identifying ways to address data gaps and accelerating prevention and management research.

It recommended ongoing investment in the NAC and NACE programs was essential to improve the lives of Australians living with allergic disease.

Dr Michael O'Sullivan, ASCIA President and clinical immunology/allergy specialist said, "The strength of this work lies in collaboration. "We've made progress, but more work is needed to make sure Australians can access the quality, research-driven, allergy care they desperately need now and in the future."

The ACT has recorded some of the highest rates of allergic disease, according to NACE research, which analysed data from 17,093 households.

For ACT mum Bek, those numbers are more than statistics. One of her identical three-year-old twins lives with life-threatening egg anaphylaxis.

"When Abigail had her first serious reaction as a baby, we didn't know where to turn," she said. "Getting answers took time and came at a cost financially and in missed opportunities for earlier help. We needed timely, consistent advice, backed by the latest research, to keep our daughter safe, especially with plans to move to the country. I just wish I'd known about these resources from the very beginning."

Abigail resized

Image: Abigail lives with life-threatening egg anaphylaxis

The findings come as more than 250 babies are now on peanut oral immunotherapy through the ADAPT OIT Program. The program involves 10 paediatric hospitals across Australia partnering with the NACE to take infant peanut allergy treatment out of clinical trial units and into mainstream care.

Hunter, 2, was one of the first babies to join the program at The Royal Children's Hospital. He is now slowly building a tolerance to peanut and is on track for remission, a life-changing outcome for him and his family.

Hunter and Kirsten resizes

Image: Hunter, with his mum Kirsten, is on track for remission from peanut allergy

"Just to know he could live a normal life without worrying about a peanut exposure would be a massive relief," Hunter's mother Kirsten said.

Funding:

The National Allergy Council and National Allergy Centre of Excellence are supported by funding from the Federal Government.

Publications:

Deloitte, ASCIA, NAC. Access Economics report, Costly Reactions: The economic and social cost of allergic disease in Australia (2025) www.allergy.org.au/ascia-reports-economic

Wang, Yichao; Koplin, Jennifer; Davies, Janet; Katelaris, Constance; Palmer, Debra; Trubiano, Jason; et al. (2025). Prevalence and sociodemographic variation of allergic diseases in Australia: findings from the Australian National Health Survey. Murdoch Children's Research Institute. Preprint. DOI: 10.25374/MCRI.29662310

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