Australian aged care sector analysis and report 2024 - KPMG Australia (2024)

Australian aged care sector analysis and report 2024 - KPMG Australia (1)

Analysis of FY23 aged care sector in Australia, including the financial performance of the top 25 home care and residential aged care providers.

Aged care sector analysis FY23: top 25 home care and residential aged care providers.

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Article Posted date11 June 2024

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Now in its seventh year, KPMG’s 2024 in-depth analysis of the Australian aged care market for FY23 is available.

Our annual report explores industry trends and shares insights into what is driving them. The report also focuses on the activities of the top 25 providers across the home care and residential aged care sectors.

This year we are excited to launch our new home care and residential aged care dashboards, allowing you to interact with, compare and analyse information across the aged care market.

Register to access home care dashboard

Register to access residential aged care dashboard

  • Aged care market analysis 2024

    Our latest report offers an in-depth analysis of the Australian aged care market, focusing on the top 25 providers by market share in both Home Care Package funding and residential aged care, using publicly available information.

Register to download report

Aged care sector insights

  • The aged care market is growing for home care, with a 1.8% increase in home care providers. However there has been a 5.2% decrease in residential providers since FY22.

  • The number of residential aged care providers decreased in FY23 due to financial and regulatory pressures, with ongoing mergers and acquisitions among larger providers seeking economies of scale, and smaller providers choosing to exit the market.

  • Home care package growth aligns with government policy and is driven by consumer preference for in-home care.

  • The top 25 Home Care Package providers now hold 40% of Australian Government funding, trending down from previous years, and indicating wider support across the base.

  • The introduction of the government’s Support at Home program is likely to alter the home care market from 2025 including easing entry barriers, increasing specialised service demand, and delivery of more focused services by existing providers.

Key findings in the aged care sector

FY23 saw the aged care market remain fragmented, with clear responses to changing government policies, regulations and consumer preferences, alongside staff shortage challenges.

Home care

As at 30 June 2023, 258,374 Australians accessed Home Care Packages. This is a 20% increase from FY22.

Approved Home Care Package providers rose by 2% to 861, nearing the FY21 peak. However, staff shortages are impacting service, and this has been further amplified by the growing demand of an ageing population.

Providers are increasingly turning to digital platforms to mitigate staffing challenges, a trend expected to grow with the anticipated 2025 Support at Home program.

Residential aged care

As at 30 June 2023, residential aged care services in Australia supported 190,683 people, a 2.4% increase from FY22. Yet there has been a 5.2% decrease in providers and a 1.4% increase in vacancies.

Regulatory and financial pressures are key drivers behind sector consolidation. Digitisation and modernisation are needed to meet the changing preferences of older Australians and improve financial performance.

KPMG's aged care industry specialists

blog postsNicki Doyle

National Sector Leader, Ageing

KPMG Australia

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blog postsLauren Ffrost

Associate Director, Health, Ageing & Human Services

KPMG Australia

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blog postsEvan Rawstron

National Sector Leader – Health, Ageing & Human Services

KPMG Australia

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Australian aged care sector analysis and report 2024 - KPMG Australia (2024)

FAQs

What is the forecast for aged care in Australia? ›

As Figure 1 illustrates, it is predicted that the number of Australians aged over 85 years will increase from 0.4 million today to 1.8 million in 2050. Significantly, by 2050 an estimated 3.5 million Australians are expected to access aged care services, such as residential aged care, each year.

How big is the aged care industry in Australia? ›

What is the market size of the Aged Care Residential Services industry in Australia? The market size of the Aged Care Residential Services industry in Australia is measured at $29.9bn in 2024.

How many residential aged care facilities are there in Australia? ›

At 30 June 2023 (or during the 2022–23 financial year for home support): 1,334 providers were providing home support through 3,744 outlets. 923 providers were delivering home care through 2,448 services. 764 providers were delivering residential care through 2,639 services.

Is 2024 going to be hot in Australia? ›

Warmer days and nights are likely according to the Bureau of Meteorology's long-range forecast. It shows most of Australia has at least an 80% chance of above average temperatures this autumn.

What is the average salary for aged care workers in Australia? ›

How much does a Aged care make in Australia? The average aged care salary in Australia is $87,826 per year or $45.04 per hour. Entry-level positions start at $70,995 per year, while most experienced workers make up to $130,446 per year.

What are weaknesses in the Australian health care system? ›

The Australian health care system performs well by international standards in terms of health services and outcomes. However, it also struggles to provide equitable access to care for all Australians and often fails to prevent and manage chronic disease effectively.

What is the aged care crisis in Australia? ›

“The aged care workforce was already under significant pressure with staff shortages, low pay, poor working conditions and increased negative attention through the Royal Commission. “Over the past year, COVID-19 has amplified these pressures.

Is there a shortage of aged care workers in Australia? ›

Care homes are being forced to close because owners cannot find skilled staff to meet staffing requirements, and the outlook is bleak. The nation faces a shortage of at least 110,000 aged care workers by 2030 according to the Committee for Economic Development of Australia (CEDA).

What are the three main types of aged care services in Australia? ›

According to the Australian government, there are 3 main types of aged care: residential, short-term and home care. Short-term aged care is beneficial for residents who need a shorter stay and don't have significant illnesses, offering families relief.

Is aged care in demand in Australia? ›

Not only is there an increasing demand on the services provided by the aged care sector with the growing number of over 85s, there is also a workforce supply challenge.

Who funds aged care facilities in Australia? ›

The Australian Government pays aged care service providers to deliver aged care. It does this through subsidies and supplements, capital grants and funding through aged care programs.

Who regulates aged care facilities in Australia? ›

The Aged Care Quality and Safety Commission is responsible for assessing and monitoring government-funded aged care services against the Quality Standards. On this page, you can find out more about: The Aged Care Quality Standards and what they mean to you, and.

What is the Ageing trend in Australia? ›

Australia is getting older, faster. By 2026, more than 22 percent of Australians will be aged over 65 — up from 16 percent in 2020, which was already double the 8.3 percent at the start of the 1970s.

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