The Alcohol & Drug Foundation has provided a stark reminder of the enormous cost to Australia due to alcohol and drugs. It also highlights that while the cost is high, every dollar spent on prevention is a smart investment, saving lives and money in the long term.
Every year, the Alcohol & Drug Foundation (ADF) says the human and economic toll of alcohol and illicit drugs in Australia is significant. It results in thousands of hospitalisations, premature deaths, and many other social issues.
The ADF urges governments to invest strategically in prevention programs. Addressing the drivers of harm before they occur not only protects individuals but also delivers strong economic returns. In fact, studies estimate that for every one dollar spent on preventive health, there is a return of approximately $14.30 in healthcare and other savings.
Investing in prevention would ease pressure on overstretched hospitals, slow the growth of health expenditures, and deliver long-term savings to federal, state, and territory budgets.
Beyond financial benefits, it would improve the quality of life for Australians by reducing preventable injuries, hospital admissions, and deaths.
Some key statistics illustrate the scale of the problem:
- 134,776 hospitalisations are related to alcohol and drug use.
- 1,667 deaths are directly related to alcohol.
- 1,762 deaths are directly related to drugs.
- More Australians die from alcohol and drug-related causes than from road traffic accidents.
- The social and economic cost of alcohol use is estimated at $74.9 billion.
- The projected cost of illicit drug use—mainly opioids, methamphetamine, and cannabis—is around $29.7 billion.
These numbers are a stark reminder that substance use is not just a personal issue—it impacts communities and the economy as a whole.
The Cost of Drugs and Alcohol in the Workplace
Substance use also carries a heavy cost for businesses. When workers come to work under the influence of alcohol or drugs, it creates safety risks and productivity losses. Out of all Australian workers who consumed alcohol or illicit drugs in the past 12 months:
- 1 in 37 have admitted coming to work under the influence of alcohol.
- 1 in 9 worked under the influence of illicit drugs.
Alcohol misuse has a direct effect on workplace productivity. In the past three months, approximately 1 in 22 people drinking at short-term risky levels missed at least one day of work due to their alcohol use. Alcohol contributes to 11% of workplace accidents and injuries, costing businesses $3.6 billion each year.
Illicit drug use in the workplace also carries a high price. It is estimated to cost Australian businesses $1.5 billion annually in lost productivity, absenteeism, and workplace accidents. These costs are avoidable, and businesses can take proactive steps to prevent substance-related harm.
Why Investing in Prevention Makes Sense
Prevention is not just a public health strategy—it’s a business strategy. Programs that focus on reducing risky drinking, drug misuse, and workplace substance use deliver multiple benefits:
- Fewer accidents and injuries: Safer workplaces reduce lost time, workers’ compensation claims, and insurance premiums.
- Higher productivity: Employees are healthier, more focused, and less likely to take unplanned time off.
- Long-term savings: Like in society, every dollar invested in prevention is likely to reduce costs overall.
- Positive workplace culture: Employees feel safer and more supported, reducing turnover and improving morale.
By implementing proactive drug and alcohol management programs, businesses can safeguard their workforce, reduce costs, and demonstrate social responsibility. Prevention is not only a moral choice but a financial one, delivering measurable returns and healthier workplaces.
Every Australian business, large or small, can benefit from taking substance use seriously. It is an investment in the people who drive success and the communities in which they operate.
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Explore the true cost of drugs and alcohol in Australia, from hospitalisations to workplace impact, and why investing in prevention delivers massive savings for businesses and communities.
