Sep 15, 2025
2026 Economic Indicators and What They Mean for Orthodontic Practices
Australia’s economy is showing signs of stabilisation after several turbulent years. For orthodontic practices in Australia, this shift brings both opportunity and caution — making the next 12–18 months critical for strategic financial planning.
The Economic Outlook for Orthodontics in 2026
Several key economic indicators point to improving conditions that will directly influence dental and orthodontic practices:
- GDP Growth: Forecast to rise modestly to ~2%–2.5% in 2026.
- Inflation: Easing toward 2.6–2.7%, aligned with the RBA’s 2–3% target.
- Interest Rates: Reduced to 3.60%, with expectations of ~3.35% by late 2025.
- Employment: Wage growth has moderated, but unemployment remains historically low at just over 4%.
- Savings & Spending: Household savings rates have dropped to 4.2%, reflecting more willingness to spend on discretionary healthcare.
- Consumer Confidence: The Westpac–Melbourne Institute Index recorded 98.5 in August 2025 — the highest in 3.5 years after a prolonged period of pessimism.
These conditions create a stronger foundation for orthodontic growth in 2026.
Why This Matters for Orthodontic Practices
Improving consumer sentiment and lower borrowing costs often translate into increased demand for discretionary healthcare services like orthodontics. Patients who previously delayed orthodontic treatment — whether for functional or cosmetic reasons — may now feel confident to proceed.
This trend is particularly significant for the adult orthodontics and cosmetic dentistry market, where affordability and perceived value drive patient decisions.
Opportunities and Risks Ahead
- Opportunities:
Practices that implement flexible payment plans, clear weekly pricing, and transparent affordability strategies are best positioned to capture this renewed demand. - Risks:
Global economic uncertainty remains. Geopolitical conflict, trade tensions, and fragile supply chains could disrupt consumer confidence and raise practice costs unexpectedly.
Key Takeaways for Orthodontists Planning Ahead
The economic outlook for 2026 suggests that orthodontic practices are entering a period of gradual recovery and growth. To succeed, practice owners should focus on:
- Tracking financial performance metrics consistently
- Maintaining tight control over overheads and operating costs
- Aligning patient pricing strategies with rising consumer confidence
- Preparing for unexpected shifts by keeping systems and cash flow resilient
2026 is approaching quickly, and the orthodontic practices that strategically plan now will be best positioned to thrive.
To help orthodontists prepare, we’re offering a free CFO Health Check — a tailored review of your practice’s numbers, benchmarks, and systems.