OBJECTIVES: To assess the cost-effectiveness of teledermoscopy as a referral method between general practitioners and dermatologists in Australia. METHODS: A decision analysis model was designed comparing conventional care and conventional care with teledermoscopy. Endpoints were defined as diagnosis by a dermatologist or by histopathology under any other physician. Diagnosis outcomes were melanoma, non-melanoma skin cancer, or benign neoplasm. Costs were calculated from the perspective of the Australian health system and included the costs of excision, pathology and consultations. Informing data were sourced systematically from literature and government databases. Effectiveness was measured by the change in the number of benign neoplasm excisions, and the time (days) to an endpoint. RESULTS: The model demonstrated that the approximate mean costs were $334 for conventional care, and $336 for conventional care with teledermoscopy. The greatest costs in the model were fees for excision of melanoma ($250.92), and non-melanoma ($157.36) neoplasms. The model was most sensitive to the proportion of patients referred via teledermoscopy, and the rate of face-to-face dermatologist consultations after teledermoscopy review. Conventional care with teledermoscopy resulted in fewer benign neoplasm excisions, and reached an endpoint in 24 days earlier than conventional care alone. CONCLUSIONS: Incorporating teledermoscopy referral into the conventional process has the potential to be cost-effective. Literature demonstrates that teledermoscopy interventions enable a higher proportion of patients to be managed by their general practitioner, which reduces appointment burden for dermatologists. Given its cost-effectiveness, and ability to reduce the time to diagnosis, teledermoscopy is a promising technology for incorporation into the Australian healthcare setting. This model is limited by the data informing it, and could be validated further by testing with prospective data.