How much do Australians actually spend on dental care out of their own pockets? The latest national figures give a clear answer. According to the Australian Institute of Health and Welfare's (AIHW) Health expenditure Australia 2024–25, individuals paid an estimated $8.6 billion out of pocket on dental services in 2024–25, about $314 per person.
Dental care is one of the biggest out-of-pocket health costs Australians face. This article breaks down the figures, explains why dental costs weigh so heavily on households, and looks at practical ways dental practices can help patients plan for treatment.
Figures in this article come from AIHW reports as published. See the AIHW website for full methods and definitions.
Key takeaways
- Australians spent an estimated $290.7 billion on health in 2024–25, or $10,614 per person, according to the AIHW.
- Individuals paid $46.4 billion of that out of pocket.
- Dental services accounted for $8.6 billion of out-of-pocket spending, 18.5% of the total, or about $314 per person.
- Routine dental care was the largest component of spending on well care, at $7.1 billion.
- Because most adult dental care isn't covered by Medicare, clear quotes, health fund information and payment planning matter a great deal to patients.
The numbers
Total health spending
The AIHW estimates that $290.7 billion was spent on health goods and services in Australia in 2024–25, equivalent to $10,614 per person. Spending grew by 3.4% in real terms, above the average annual growth rate over the previous decade.
Out-of-pocket spending
Individuals paid an estimated $46.4 billion out of pocket on health goods and services. Of that, $8.6 billion (18.5%) was spent on dental services, equivalent to about $314 per person.
The AIHW also notes that growth in primary health care spending was driven partly by increased spending on dental services.
Routine dental care
In the AIHW's analysis of spending by disease and condition, routine dental care was the largest component of spending on "well care", at $7.1 billion.
Why dental costs hit households hard
Limited public funding
Medicare doesn't cover most adult dental care. Eligible children can access the Child Dental Benefits Schedule, and public dental services are available for some adults, often with waiting lists. See our CDBS guide and where a seniors dental scheme stands.
Health fund gaps
Private health insurance extras cover helps many patients, but benefits vary by fund, policy and provider, and patients often pay a gap. Changes such as nib's October 2026 benefit change can affect what patients get back.
Delayed care
When cost is a barrier, patients may put off check-ups and treatment, which can lead to more complex and expensive problems later.
What dental practices can do
1. Give clear, itemised quotes
For any treatment beyond a check-up, give patients a written quote with item numbers and fees, so they can check their benefits with their health fund. See cutting admin time on health fund enquiries.
2. Explain costs early
Discuss costs before treatment starts, including what's essential now and what can be planned over time, as clinically appropriate.
3. Make prevention easy
Regular check-ups and cleans can help avoid more expensive treatment later. Strong recall and reminder systems help patients stay on track. See dental recall systems that work.
4. Be clear about payment options
If your practice offers payment plans, explain them clearly and accurately. Avoid pushing finance or early release of superannuation. See early release of super for dental treatment.
5. Help patients understand their cover
Explain how health funds, preferred provider networks and HICAPS work at your practice. See should your practice join a health fund network?
6. Answer cost questions quickly
Cost questions are among the most common calls a practice gets. Clear answers on your website and phone lines, and from any AI receptionist or chatbot, help patients make decisions sooner.
Frequently asked questions
How much does the average Australian spend on dental care?
According to the AIHW, individuals paid about $314 per person out of pocket on dental services in 2024–25. Individual costs vary widely depending on treatment needs and cover.
Does Medicare cover dental?
Not for most adults. Eligible children may be covered under the Child Dental Benefits Schedule, and some adults can access public dental services.
Why is dental such a large out-of-pocket cost?
Most dental care is funded privately, through out-of-pocket payments and private health insurance, rather than through Medicare.
Next steps
Review how your practice explains costs to patients, from the first phone call to the treatment plan. To answer cost and health fund questions consistently by phone and chat, book a demo of IntelliDent.