Australia: regional profile for digital health innovators

Are you a UK-based health innovator looking to explore international markets? The Health Innovation Network (HIN) South London and its DigitalHealth.London programmes are supporting innovators considering international expansion. Find out about our new expert-led webinar series, and scroll to the bottom of this page to watch our webinar focused on Australia.

Why Australia?

For UK-based health and care innovators, Australia offers a large, English-speaking market with strong clinical standards, high digital maturity and close regulatory alignment with international frameworks, such as the International Medical Device Regulators Forum (IMDRF) and the WHO Global Model Regulatory Framework. These promote harmonised global approaches to safety, quality and market access.

Australia has a mixed healthcare system, combining both public funding (Medicare) and private funding (insurance and out-of-pocket payments). The public system ensures universal access, while private care offers additional choice, faster treatment and extra services. The healthcare system shares many structural similarities with the UK, including a strong primary care infrastructure.

Australia’s healthcare system faces challenges familiar to UK-based health tech companies, including an ageing population, workforce pressures, rural access disparities, and growing demand for digital care pathways and long-term condition management. These pressures are driving strong national investment in virtual care, remote monitoring, workforce productivity tools, and integrated data systems.

Australia is also an attractive testbed for innovation. Its combination of national digital infrastructure, such as the widespread My Health Record system, federated governance across jurisdictions, and a highly integrated clinical research ecosystem enables innovators to pilot and refine solutions in real-world settings.

Government-backed testbed programmes and innovation partnerships further support this environment. In addition, regulatory pathways for digital health technologies are increasingly aligned with international standards. Digital health technologies in Australia are regulated by the Therapeutic Goods Administration (TGA), which oversees medical devices and Software as a Medical Device (SaMD).

Country profile

Population: approximately 27.4 million (December 2024)

Gross Domestic Product: AUD 731 billion (2025 estimate)

Healthcare spending as proportion of GDP: approximately 10.1% of GDP (2023–24)

Economic growth: 2.6% (2025)

Total annual healthcare expenditure: approximately AUD 270.5 billion in 2023–24

Healthcare market dynamic

Australia’s national public system, Medicare, provides subsidised access to general practitioners (GPs), public hospitals, and selected allied health services such as physiotherapy, psychology and occupational therapy. In parallel, a significant private healthcare sector supports elective care, diagnostics and specialist services.

In Australia’s healthcare system, funding responsibilities are shared across federal, state and territory governments. The federal government primarily funds primary care services and pharmaceuticals, while state and territory governments are responsible for delivering public hospital and community health services. Territory governments undertake similar roles to the states, managing hospitals and community health services while operating within national funding frameworks and responding to the specific needs of their populations.

Australia is a geographically large country with a relatively small but highly urbanised population. Most people live in metropolitan regions along the eastern and south-eastern coastline, including major cities such as Canberra, Sydney, Melbourne, and Brisbane.

However, large rural and remote regions, including the Northern Territory and inland Western Australia, create unique service delivery challenges and drive demand for digital health technologies supporting community-based care. The vast geographic areas that services cover has also encouraged earlier adoption of telehealth and remote care technologies.

Australia’s population is ageing, driving increased demand for services for older people, long-term conditions management, and community care. As in the UK, this demographic shift is placing pressure on hospital capacity, workforce supply, and primary care services. Population growth from migration also increases demand further and creates opportunities for digital health tools that support multilingual and culturally appropriate care. Socioeconomic disparities across rural and remote regions, particularly in access to care, are also important considerations.

Key systems and organisations

• Australian Government Department of Health and Aged Care
  Leads national health policy and regulation, while also funding major programmes such as Medicare, the Pharmaceutical Benefits Scheme (PBS), primary care, mental health initiatives, and aged care services, alongside broader public health initiatives.
• State and Territory Health Departments
  Deliver and manage public hospital systems and regional health services, with operational oversight and regulatory responsibilities within their jurisdictions to ensure safe and effective care delivery.
• Australian Digital Health Agency (ADHA)
  Oversees the development and implementation of national digital health infrastructure and interoperability standards, providing governance and stewardship of digital systems and policy rather than direct service regulation.
• Primary Health Networks (PHNs)
  Act as regional organisations responsible for commissioning and coordinating primary care and community services, with a focus on service planning, performance oversight, and system integration rather than formal regulation.

Digital innovation landscape

Australia has developed one of the most extensive national digital health infrastructures among Organisation for Economic Co-operation and Development (OECD) countries. A central component is My Health Record, the national electronic health record platform that enables patients and clinicians to access shared health information across care settings. As of 2024, more than 23.5 million people, around 90% of the population, have a My Health Record. This national infrastructure supports interoperability between hospitals, primary care providers, pharmacies, and diagnostic services.

Australia is also investing heavily in virtual care and remote service delivery. Telehealth usage expanded significantly during the COVID-19 pandemic and has remained an embedded component of care delivery across a wide range of pathways, including primary care, specialist consultations, mental health services, and the ongoing management of long-term conditions. Between March 2020 and mid-2024, more than 118 million telehealth services were delivered through Medicare, reflecting the role of digital access in addressing geographic barriers and workforce shortages.

The Australian Digital Health Agency (ADHA) continues to expand this digital ecosystem through initiatives such as secure messaging, electronic prescribing, and national interoperability frameworks. For example, electronic prescribing became widely implemented following COVID-19, with over 200 million electronic prescriptions issued since introduction, demonstrating strong national adoption of digital workflows.

Government strategies such as the National Digital Health Strategy 2023–2028 focus on improving the safe sharing of health data—including patient information—across the system, alongside expanding digital identity frameworks and strengthening health system integration. Health system integration refers to connecting hospitals, primary care, pharmacies, and digital platforms so that data flows seamlessly and care is coordinated. Digital identity frameworks enable the secure verification of individuals and organisations (such as patients and clinicians), ensuring the right people can access the right information at the right time.

Key considerations for UK innovators

Regulatory pathways

Digital therapeutics, remote monitoring tools, and AI-based clinical support systems must undergo regulatory assessment if they meet the definition of a medical device. Depending on their risk classification, innovators may need to provide clinical evidence to demonstrate safety and effectiveness, which can include both the use of existing data and the generation of new evidence where required. Additionally, applicants are typically expected to submit cybersecurity documentation, software validation materials, and plans for post-market surveillance.

Australia also operates structured health technology assessment (HTA) processes through bodies such as the Medical Services Advisory Committee (MSAC) and the Pharmaceutical Benefits Advisory Committee (PBAC), which evaluate clinical and economic evidence to inform reimbursement decisions. These decisions determine whether new medicines, devices, or medical services are publicly funded, and the level at which the government will cover their cost for patients. For UK innovators, early engagement with regulatory and reimbursement processes is important, particularly for technologies seeking public funding or integration into national programmes.

Data governance, policy, and cybersecurity

Health data governance in Australia is regulated through national privacy legislation, particularly the Privacy Act 1988, alongside additional health-specific regulations such as the My Health Records Act 2012 and the Healthcare Identifiers Act 2010. The Australian Privacy Principles (APPs) set requirements for data collection, use, storage, and disclosure across healthcare organisations.

Digital health systems connected to national infrastructure must comply with strict cybersecurity and data protection requirements. Systems that integrate with My Health Record must meet national standards for secure data exchange, identity verification, and audit logging. Australia has also strengthened national cybersecurity expectations following increased digitalisation across healthcare systems. This includes compliance with healthcare cybersecurity guidance issued by the Australian Cyber Security Centre, which emphasises resilience, risk management, and incident response planning.

For UK innovators, demonstrating robust security architecture and compliance with Australian privacy requirements is critical for market entry and integration with public systems.

Infrastructure readiness

Australia has a mature digital infrastructure that supports large-scale integration of digital health services across primary, secondary, and community care settings. National systems such as My Health Record, secure messaging networks, and electronic prescribing infrastructure form the backbone of digital service delivery. Electronic prescribing has become a standard component of clinical workflows. Since introduction, more than 200 million electronic prescriptions have been issued, indicating strong system-level integration and clinician engagement.

Digital inclusion challenges remain, particularly in rural and remote regions where connectivity can be variable. However, national programmes such as the National Broadband Network (NBN) continue to invest in digital connectivity through initiatives, which supports telehealth expansion across remote communities.

Overall, infrastructure readiness in Australia has the potential to support national-scale deployment of digital health technologies, particularly solutions that integrate with established digital frameworks and clinical systems.

Cultural and adoption factors

Healthcare professionals in Australia are generally receptive to digital technologies, particularly those that improve workflow efficiency and support remote care delivery. Sustained use of telehealth indicates clinician familiarity with digital tools and growing acceptance of virtual models of care.

Geography plays a major role in shaping digital adoption. Australia’s large rural and remote population has historically driven innovation in telemedicine and remote monitoring. Patients living outside major metropolitan areas are more likely to rely on digital channels for consultations and specialist access, creating strong demand for scalable digital solutions.

Population diversity also influences digital health adoption. Australia has a highly multicultural population, with around 30% of residents born overseas, creating demand for culturally appropriate digital interfaces (such as language support and culturally sensitive design) and multilingual service delivery.

For innovators, solutions that support remote workflows, improve clinician efficiency, and offer flexible patient engagement models are likely to align well with system priorities.

Funding and support

Australia provides a wide range of funding and support opportunities for digital health innovation, supported by federal investment programmes, research funding bodies, and public-private partnerships. Government initiatives frequently support digital transformation, particularly in areas such as remote care, workforce productivity, and health data analytics. For UK innovators, collaborative research partnerships are a common entry route, particularly when developing solutions that require clinical validation or regulatory approval.

Major national funding programmes include:

Medical Research Future Fund (MRFF)
A major government investment programme supporting health and medical research, with a total fund value of over A$24.83 billion in capital, making it one of the largest medical research funds globally. The capital is invested, with returns used to provide ongoing funding for research initiatives.

National Health and Medical Research Council (NHMRC)
Supports research funding across healthcare disciplines, including digital health, clinical trials, and health system innovation.

Austrade – Health and Medical Innovation Support
Provides market-entry support, partnership development, and export assistance for healthcare innovators entering the Australian market.

Cooperative Research Centres (CRC) Programme
Supports collaborative innovation between industry, academia, and government agencies, including digital health research initiatives.

Opportunities for UK innovators

• Collaborate with Australian public health providers, universities, and research institutes to pilot and validate digital health technologies within established clinical networks.
• Develop solutions targeting remote healthcare delivery, including telehealth, remote patient monitoring, and workforce productivity tools, particularly for rural communities.
• Integrate with national digital infrastructure, including My Health Record and electronic prescribing systems, to embed solutions into routine clinical workflows.
• Explore partnerships aligned to national investment priorities, such as ageing populations, chronic disease management, and healthcare workforce sustainability.
• Build strategic positioning by leveraging Australia as a gateway to the Asia-Pacific digital health market, using opportunities to generate clinical validation evidence within a highly regulated and internationally recognised healthcare system.

Webinar recording

This webinar provides an introduction to the Australian health care system, including insights from industry experts about conducting business in the Australian healthcare market.