The Economic Impact of Insomnia September 15, 2026 The Economic Impact of Insomnia Insomnia is more than a frustrating night spent staring at the ceiling. When sleep problems become persistent, the effects can spill into almost every part of daily life, from how we feel and function to how productive we are at work. Across Australia, these individual effects add up to a surprisingly large economic and social burden. The $19.1 billion cost of insomnia According to a Deloitte Access Economics report commissioned by the Sleep Health Foundation, insomnia was estimated to cost Australia approximately $19.1 billion in 2019–20.1 However, this figure does not mean $19.1 billion was directly spent on treating insomnia. In fact, healthcare represents only a small part of the overall burden. The estimate considers the wider consequences of insomnia, including reduced wellbeing, lost productivity, accident-related costs and informal care. The largest component was loss of wellbeing, valued at approximately $13.3 billion, or almost 70% of the total burden.1 This is a non-financial measure that places a value on the loss of healthy life and quality of life associated with insomnia. When poor sleep affects productivity The workplace impact of insomnia is also significant. Around $4.5 billion, or 24% of insomnia's total estimated cost, was attributed to productivity losses.1 These losses can occur when people miss work because of poor health, known as absenteeism, but also when they turn up to work and are unable to perform at their usual capacity, known as presenteeism. Reduced workforce participation and lost future earnings can add to the overall impact. Other estimated costs included approximately $609 million in deadweight losses, $330 million in accident-related costs, $286 million in healthcare costs and $90 million in informal care.1 Could better insomnia treatment make a difference? The good news is that treating insomnia may offer benefits that extend well beyond a better night's sleep. Cognitive behavioural therapy for insomnia (CBT-I) is recommended as a first-line treatment for chronic insomnia. Yet fewer than 1% of Australians with insomnia currently access it.2 More recent economic modelling commissioned by the Australasian Sleep Association found that expanding access to digital and clinician-delivered CBT-I to 100,000 Australian adults over five years could generate $149.7 million in economic benefits through reduced healthcare costs and avoided productivity losses.2 It could also prevent an estimated $460.2 million in wellbeing losses.2 The analysis estimated that for every $1 invested in expanding access to CBT-I, Australia could receive up to $3.67 in economic benefits.2 Better sleep has benefits beyond the bedroom Insomnia can affect far more than the hours we spend in bed. Its impact can reach our wellbeing, workplaces and the wider Australian economy. If you regularly struggle to fall asleep, stay asleep or feel that poor sleep is affecting how you function during the day, speak with your doctor. Identifying and treating insomnia early may help improve not only your sleep, but your health, wellbeing and everyday quality of life. References 1. Rise and Try to Shine: The Social and Economic Cost of Sleep Disorders in Australia Sleep Health Foundation. 2021, https://cdn.prod.website-files.com/64b4b7e38dda973fdbb7faf2/65025dd8d39f16049f1bdc32_Rise%20and%20try%20to%20shine-%20the%20social%20and%20economic%20costs%20of%20sleep%20disorders.pdf. Accessed 12 Aug. 2026. 2) “First-Line but out of Reach: New Deloitte Report Shows Why Australia Must Expand Access to CBT-I.” Sleep.Org.Au, 2026, https://sleep.org.au/Public/Public/News/Articles/Aug/Deloitte-report.aspx. Accessed 12 Aug. 2026.
