Chronic and mental health conditions are placing an unprecedented strain on Australia's population, according to the Australian Institute of Health and Welfare (AIHW)'s comprehensive biennial health report for 2026, published on Thursday, 9 July. The report found that 61 per cent of Australians — approximately 15.4 million people — were living with at least one chronic long-term health condition in 2022, while 38 per cent carried the burden of two or more such conditions.

Scale of the Chronic Disease Crisis

Australians collectively lost an estimated 4.9 million years of healthy life due to chronic conditions in 2024, representing 84 per cent of the country's total national disease burden. The top five leading causes of disease burden that year were all chronic in nature — a finding that underscores a structural, long-term shift in the nation's health profile rather than any acute or temporary trend.

Notably, dementia emerged as Australia's leading cause of death for the first time in 2024, according to data from the Australian Bureau of Statistics (ABS). Dementia accounted for 9.4 per cent of all deaths nationally, edging past heart disease, which stood at 8.7 per cent.

Dementia Deaths Rise 39%, Heart Disease Falls

The AIHW report revealed that dementia deaths rose by 39 per cent between 2015 and 2024, even as heart disease deaths declined by 18 per cent over the same period. Zoran Bolevich, Chief Executive Officer of the AIHW, attributed the surge in dementia mortality to Australia's ageing population — a demographic reality that is expected to intensify pressure on aged care and health systems in the years ahead.

This comes amid a broader global pattern in which neurological diseases are outpacing cardiovascular conditions as primary killers in high-income, ageing societies. Australia's trajectory mirrors trends seen in parts of Europe and Japan, where dementia has similarly climbed the mortality rankings.

Mental Health Conditions on the Rise Among Youth

The report also flagged a sharp deterioration in mental health, particularly among younger Australians. In 2022, 22 per cent of Australians aged 16 to 85 reported experiencing a mental health condition in the preceding 12 months. Among those aged 16 to 24, the proportion reporting mental health conditions climbed from 26 per cent in 2007 to 39 per cent in 2022 — a rise of 13 percentage points over 15 years.

Critics and health advocates argue that the youth mental health surge reflects a confluence of factors including social media exposure, post-pandemic anxiety, housing affordability stress, and underinvestment in early intervention services.

Silver Lining: Life Expectancy and Cancer Survival Improve

Despite the mounting burden of chronic and mental illness, the report highlighted meaningful progress on several fronts. Life expectancy at birth reached 85.1 years for females and 81.1 years for males in the 2022–24 period, reflecting continued gains in overall health outcomes.

Cancer survival rates also improved markedly. The five-year relative survival rate for cancer patients rose from 50 per cent in the period 1987–1991 to 72 per cent in 2017–2021 — a near-doubling that reflects advances in early detection, oncology treatments, and public health screening programmes.

What the Data Signals for Policy

The AIHW's findings present a dual challenge for Australian policymakers: managing a growing chronic disease burden while sustaining the healthcare investments that have driven improvements in life expectancy and cancer outcomes. With dementia now the country's leading killer and youth mental health deteriorating, the next federal health budget cycle is expected to face intensified calls for targeted funding in aged care, mental health infrastructure, and preventive health programmes.