Rising healthcare costs driven by technology and increasing utilisation are creating an unsustainable funding trajectory for New Zealand, ophthalmologists heard at RANZCO NZ 2026.
Ophthalmologist Dr Brian Kent-Smith said New Zealand’s apparent health spending figures may be misleading, noting that comparisons with Australia fail to account for economic differences and tax treatment.
“New Zealand and Australia spend a similar amount – 10%,” he said. “But look at the difference in GDP per capita. Theirs is about 36% higher than ours.”
He also argued New Zealand’s reported healthcare spending is artificially inflated because GST applies to healthcare, unlike many comparable countries where health services are zero-rated. Additionally, our GST is not specifically allocated to any one thing, unlike the Australian Medicare levy “which is hypothecated to health”, he said.
“There was also a temporary increase in spending over Covid, which inflated the figures. Our true spend is closer to 8%,” he said, but qualified the figure by adding that, “New Zealand hasn't fully reported to the OECD since 2018. So these figures may or may not be accurate”.
