Aged Care Residential Services in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) February 02, 2015 -- One of the complex issues associated with Australia's ageing population is the need for age-appropriate housing. While roughly 6.1 million Australians are aged over 55, just 6.0% live in retirement villages or residential aged-care facilities. According to IBISWorld industry analyst Arna Richardson, “With the onset of age-related conditions or fragility comes the growing need for assistance with everyday activities and personal care.” Over the past five years, players in the Aged Care Residential Services industry in Australia have continued to expand, offering different lifestyle accommodation options and aged-care services. Over the five years through 2014-15, industry revenue is expected to grow at an annualised 4.2%, to $17.0 billion. In 2014-15, industry revenue is projected to increase by 5.1%, boosted by new financial arrangements allowing for a user-pays component.
One of the variables expected to shape industry performance during 2014-15 will be the implementation of the former Federal Government's Living Longer Living Better aged-care reform package, which was announced in 2012. “The second round of significant changes commenced on 1 July 2014, with the implementation of new residential accommodation payment arrangements and revised income and asset testing,” says Richardson. Equally significant has been the removal of the previous distinction between approved low-care, high-care and extra-service permanent residential places. The industry displays a low level of market share concentration. Major players include BUPA Australia Healthcare Holdings Pty Limited and Fairway Investment Holdings Pty Ltd.
Industry participants are expected to face considerable challenges over the next five years, as they implement and adjust operations in line with the changing environment. Players will be able to offer a greater variety of user-pays services, which will be covered by extra service fees and higher accommodation payments, thereby generating more revenue. In line with governmental Ageing in Place principles (which allow a person to live in the residence of their choice for as long as possible) more services will be provided across the aged-care spectrum. In addition, industry participants may seek to diversify product offerings to include home-care packages. With demographic variables also driving the aged-care sector, growth in Aged Care Residential Services industry revenue will continue to be strong. The industry is expected to continue consolidating as private for-profit players assume a greater role within the aged-care sector.
For more information, visit IBISWorld’s Aged Care Residential Services industry in Australia report page.
The industry consists of establishments that provide long-term aged-care accommodation, including government-approved residential aged-care accommodation and retirement villages. An increasing number of establishments are providing residential aged-care services across the entire spectrum of dependency, from independent living units and low-care options through to high- care and specialist care such as dementia care in line with ageing in place principles.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]
Share this article