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.
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.
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.
