Dementia accounted for almost 17,400 deaths in 2023, equivalent to almost one in 10 of all deaths, according to the Australian Institute of Health and Welfare.
It is the leading cause for women and second to heart disease for men.
More than 425,000 Australians were estimated to be living with dementia in 2024, equivalent to 16 people in every 1000.
But the rate rises quickly from one in 1000 for people aged 30 to 59 to 210 per 1000 in Australians aged 85 to 89.
By 2065, almost 1.1 million people are predicted to have dementia, a 2.5-fold increase.
"While 2065 may seem far away (40 years), these time frames are relevant to the early and mid-life prevention measures that can decrease the risk of developing dementia in later years," the AIHW report states.
After noticing her husband had become distant from her and their kids, a 42-year-old mother-of-two questioned their entire marriage.
One day he couldn't find words at all.
They went to see a neurologist and the woman's husband was diagnosed with younger onset frontotemporal dementia, which affects a person's behaviour and moods.
One of the hardest moments was telling their 10 and seven-year-old about their father's condition.
"Their little hearts broke. I'll never forget it. It was devastating," she said.
Life now is a juggling act, with the woman handling the entire household and kids as well as caring for her husband, but she stayed true to her wedding vows.
"In sickness or health, for better or worse ... I want (our children) to see that when you love someone you look after them," she said.
The report revealed the enormous impact dementia had on families, Dementia Australia chief executive Tanya Buchanan said.
"People affected by dementia often tell us that friends and family drift away after a diagnosis, because they are unsure of how to interact," she said.
Ahead of Dementia Action Week, Professor Buchanan said the federal government must commit to funding a national conversation to raise awareness and promote brain health at all ages.
"By taking a comprehensive approach, we can reduce the impact of dementia into the future," she said.
"We simply cannot afford to wait."
Australia spent almost $3.7 billion on dementia diagnosis, treatment and care in 2020/21, with residential aged care services accounting for almost half of that.
Advocate Lil Mirtl, who lives with dementia, said it was a community-wide responsibility and there was no time to feel uncomfortable or awkward about these conversations.
Dementia was the second leading cause of disease burden in 2024.
Obesity, smoking, excessive alcohol consumption, head injury, high blood pressure, untreated hearing and vision loss, depression and diabetes increased the risk of developing dementia.
Protective factors include high levels of education, physical and cognitive activity and social engagement.
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