Australia spends much more on health care expenditure than on health promotion and prevention. Only 1.7% of total health expenditure in 2011-12 went to public health activities focused on prevention. However, chronic diseases place a large burden on the health system and are often preventable. More funding for prevention strategies could help control rising health costs by reducing rates of chronic illness. While some progress has been made, Australia still spends less on prevention than many other developed countries. Increased investment in primary care and prevention is needed to adequately address challenges from chronic diseases and an aging population.