The death rate from Psychostimulants, which include methamphetamines and the drug "ice", have quadrupled since 1999.
The data also revealed that 2016 was the worst year for drug-induced deaths since the late 1990s, with two thirds (67%) of the 1808 deaths linked to prescription benzodiazepines and opioids.
Middle aged men misusing self-mixed cocktails of prescription drugs were more likely to have an accidental drug death than users of illegal drugs.
While prescription medication was the leading cause of drug-induced deaths, rates of deaths caused by illicit drugs also increased.
"The death was most likely to be an accident". Rates of death were 1.6 times higher for heart disease, 4.9 times higher for diabetes, 2.7 times higher for respiratory diseases and 2.1 times higher for lung cancer.
In 2016 there were 158,504 deaths from dementia, equal to 8.3 per cent of all deaths.
In its report released on Tuesday, the ABS said the infant mortality rate was at a record low, with 3.1 deaths recorded per 1,000 live births.
Cancer accounted for nearly 30% of the 158,504 deaths reported in Australia past year.
The top five causes overall did not change from the previous year and accounted for 37.3 per cent of all deaths.
Colorectal cancer was the sixth leading cause of death, accounting for 5,462 deaths in 2016.
Heart disease was found by the ABS to be the leading cause of death, with 19,077 deaths in 2016, while 13,126 deaths were caused by dementia.
Breast cancer was the sixth ranked cause for women, while prostate cancer was the sixth ranked for men.
"Improvements in treatments and prevention of heart disease have contributed to increased life expectancy, but this has also led to increased deaths from conditions such as dementia which affect predominantly very elderly Australians", director of health and vital statistics at the ABS James Eynstone-Hinkins said in a statement.
There were 11.7 suicide deaths per 100,000 people recorded in 2016.
Suicide was the fifth leading cause of death for Aboriginal and Torres Strait Islander people, behind heart disease, diabetes, chronic lower respiratory diseases and lung cancer.