 Total expenditure on health ( including private sector spending ) is around 9 @.@ 8 % of GDP . Australia introduced universal health care in 1975 . Known as Medicare , it is now nominally funded by an income tax surcharge known as the Medicare levy , currently set at 1 @.@ 5 % . The states manage hospitals and attached outpatient services , while the Commonwealth funds the Pharmaceutical Benefits Scheme ( subsidising the costs of medicines ) and general practice . 
