Multiple sclerosis (MS) represents a significant economic burden both to the patient and to society. This study aims to provide information about direct and indirect costs of MS in Australia. Detailed questionnaires were completed for 100 patients over a 6-month period (12 months for hospitalization costs). Overall, the average annual direct and indirect costs per patient were AU$20 396 and AU$15 085, respectively. The greatest uses of resources were for immunomodulating drugs, consultations and district nursing. Various factors significantly increased overall direct costs, including secondary progressive MS, severe MS symptoms and higher Expanded Disability Status Scale scores. This study confirms that MS is a costly disease with a high economic burden on society. In order to minimize MS costs and improve quality of life, the ideal aim of MS treatment should be to stabilize patients on a low disability (low cost) level at an early stage of the disease utilising a cost-effective therapy.