This paper measures the concentration of ill‐health among income groups in Australia using health survey data from 1989–90 (Australian Bureau of Statistics 1991) and 1995 (Australian Bureau of Statistics 1997), which contain responses on self‐assessed health status and gross personal income. The technique of direct standardisation is used to control for the influence on health status of gender and age. Comparisons of the concentration of ill‐health over time and between males and females and persons living in rural and urban areas are reported. For both surveys and all groups, we find that ill‐health is concentrated among lower income groups. Concentration measures of ill‐health are higher (in absolute terms) for men than for women. In all categories apart from women, the concentration measures fell between 1989–90 and 1995 surveys.