Equity indicators imeasure how well a service is meeting the needs of certain groups in society with special needs. Indicators may reflect both equity of access, whereby all Australians are expected to have adequate access to services, and equity of outcome, whereby all Australians are expected to achieve similar service outcomes.

Equity is an important concept in economic literature, with two elements:

• horizontal equity
• the equal treatment of equals
• vertical equity
• the unequal but equitable ('fair') treatment of unequals.

In the context of this Report, horizontal equity is exhibited when services are equally accessible to everyone in the community with a similar level of need. Service delivery exhibits vertical equity when it accounts for the special needs of certain groups in the community and adjusts aspects of service delivery to suit these needs. This approach may be needed where geographic, cultural or other reasons mean some members of the community have difficulty accessing a standard service.