SummaryObjective To investigate response to growth hormone (GH) in the first, second and third years of treatment for all idiopathic GH‐deficient (GHD) and idiopathic short stature (ISS) patients in Australia.Context Eligibility for subsidized GH treatment in Australia is determined on auxological criteria for the indication of Short Stature and Slow Growth (SSSG), which includes ISS (SSSG‐ISS). The biochemical GHD (BGHD, peak GH < 10 mU/l) and SSSG indications are treated similarly: starting dose of 4·5 mg/m2/week with provision for incremental dosing. Some ISS patients were specifically diagnosed with familial short stature (SSSG‐FSS).Design Responses for each year of treatment for BGHD, SSSG‐ISS and SSSG‐FSS cohorts were compared in relation to influencing variables and with international benchmarks. The effect of incremental dosing was assessed.Patients Australian BGHD, SSSG‐ISS and SSSG‐FSS patients who had completed 1, 2, or 3 years of treatment and were currently receiving GH.Measurements Growth hormone dose, change in height‐standard deviation score (ΔSDS) and growth velocity (GV).Results First‐year response was 2–3 times greater than that in subsequent years: ΔSDS1st year = 0·92, 0·50 and 0·46 for BGHD, SSSG‐ISS and SSSG‐FSS, respectively. Responses were similar to international reports and inversely related to age at commencement of GH. First‐year GV‐for‐age for BGHD patients was similar to international standards for idiopathic GHD. However, girls had an inferior response to boys when treatment commenced at <6 years of age. First‐year GV‐for‐age for SSSG‐ISS/FSS patients was less than ISS standards. Dose increments attenuated the first‐ to second‐year decline in response to BGHD but marginally improved the responses for SSSG‐ISS/FSS.Conclusions The Australian auxology‐based GH programme produces comparable responses to international programmes. A lower starting dose is offset by the initiation of treatment at younger ages. Incremental dosing does not appear optimal. A first‐year dose of 6·4–6·9 mg/m2/week for GHD and 8·9 mg/m2/week for ISS with early commencement of GH treatment may be most efficacious.