"It does convert into dollars."
Treating sleep disorders makes up a relatively small chunk of the $5.1 billion direct cost to the economy.
The research found $270 million a year is spent on directly caring for those with sleep problems and a further $540 million on treating knock-on effects such as high blood pressure.
By far the biggest chunk - $4.3 billion - comes from lost productivity, caused by absenteeism and poor work performance.
A further $650 million is lost through indirect costs such as workplace and car accidents.
Prof Hillman, who is head of pulmonary physiology and sleep medicine at Perth's Sir Charles Gairdner Hospital and a director of the WA Sleep Disorders Research Institute, urged politicians and businesses to pay more attention to the problem.
"At the moment there is a concentration on healthy diet, regular exercise, alcohol moderation and smoking," he said.
"But a good night's sleep isn't there (on the agenda) and it's got to be."
Tips to avoid sleep disorders:
* Wind down and relax before bed.
* Sit down with a good book, listen to music or construct to-do lists.
* Avoid caffeine in the late afternoon.
Source: Sleep Health Foundation.*
- AAP