Demographics

Australia had a population of 21 097 100 in 2007; 10 492 500 males and 10 604 600 females. The average age of the population was 37.8 years, with a life expectancy at birth of 78.7 years for men and 83.5 years for women. It is one of the world’s most urbanized countries, with 88.2% of the population living in urban areas. Most of the population is concentrated along the eastern seaboard and the south-eastern corner of the continent. Australia’s population is ageing, with the number of persons aged 65 years or more expected to double by 2051.

Political situation

Australia was created in 1901 when former British colonies (now the six states) agreed to federate. The Government is based on a popularly elected parliament with two chambers: the House of Representatives and the Senate. Ministers appointed from these chambers conduct executive government. Policy decisions are made in meetings of the Cabinet. Ministers are bound by the principle of Cabinet solidarity. Although Australia is an independent nation, Queen Elizabeth II of the United Kingdom of Great Britain and Northern Ireland is also formally Queen of Australia. The Queen appoints a Governor-General (on the advice of the elected Australian Government) to represent her. The Governor-General has wide powers, but by convention acts only on the advice of ministers on virtually all matters.

Australia’s system of government is based on the liberal democratic tradition, which includes religious tolerance and freedom of speech and association. Its institutions and practices reflect British and North American models, but are uniquely Australian.

Australia has a written constitution that defines the responsibilities of the Federal Government, which include foreign relations and trade, defence and immigration. Governments of states and territories are responsible for all matters not assigned to the Federal Government. State parliaments are subject to the national constitution as well as their state constitutions. A federal law overrides any state law not consistent with it.

A national general election must be held within three years of the first meeting of a new federal parliament. The average life of parliaments is about two-and-a-half years. A federal election held in late 2007 resulted in a change of government for the first time in 11 years.

Socioeconomic situation

In 2005, Australia’s total expenditure on health goods and services, based on the OECD System of Health Accounts definition of total health expenditure, was estimated at AUS$ 85 billion (US$ 74 billion) or 8.8% of GDP. Total health expenditure increased by 8.2% per year on average for the decade from 1995 to 2005—more than the increase in GDP (6.4% per year)—which resulted in an increase in the health-to-GDP ratio. In 2005, Australia had a health-to-GDP ratio that was comparable to Italy and New Zealand, was more than the United Kingdom and considerably lower than the United States. In 2005, Australia’s general government expenditure on health accounted for 67% of total expenditure on health and 17% of total general government expenditure. Private expenditure on health made up 33% of total expenditure on health.

Between 1995 and 2005, the average rate of general inflation was 2.7% per year. Health inflation during that period averaged 3.1% per year, giving an excess health inflation rate of 0.4% per year. In 2005, government funding of health expenditure was AUS$ 59 billion (US$ 51 billion) (68%), with the Australian Government contributing AUS$ 37 billion (US$ 32 billion) (43%) and state, territory and local governments contributing AUS$ 22 billion (US$ 19 billion) (25%). The non-government sector (households, private health insurance and other non-government) funded the remaining AUS$ 28 billion (US$ 24 billion)(32%).

For 2005, estimated per capita health expenditure averaged AUS$ 4226 (US$ 3681). Real growth in per capita health expenditure between 1995 and 2005 averaged 3.8% per year, compared with 5.1% for total national health expenditure. The difference between these two growth rates is the result of growth in the overall size of the Australian population. Out-of-pocket recurrent expenditure by individuals on health goods and services accounted for an estimated AUS$ 15.4 billion (US$ 13.4 billion), the majority for medications (34%), dental services (23%) and aids and appliances (13%).

The largest proportion of real growth in recurrent health expenditure between 2003 and 2005 was on hospitals (42%)—public hospital services (38%) and private hospitals (4%)—medications (17%) and medical services (14%).

The number of unemployed people in Australia has been declining over the last decade, with the trend unemployment rate falling from 7.8% in February 1998 to 4.1% in February 2008. Over the same period, the trend participation rate increased from 63.2% to 65.2%.

Vulnerabilities and hazards

Biological hazards, such as avian influenza and severe acute respiratory syndrome continue to pose an imminent risk to Australia. In preparation, the country hosted the Asia-Pacific Economic Cooperation (APEC) Avian Influenza Preparedness and Response Meeting in Brisbane in 2005 and led the APEC Pandemic Response Exercise in June 2006.

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