We recently conducted the 2017 Corporate Administration Survey and had a response from a large number of aged care providers covering 457 residential care facilities with 35,164 operational places, 12,972 home care clients and 15,395 occupied independent living units. Across the 58 organisations that submitted data, revenues totalled $4.8 billion and aggregated total assets were a total of $15.8 billion.
StewartBrown Newsletter August 2017
Welcome to our August 2017 edition of the StewartBrown newsletter. We hope to keep you informed of the important tax developments and issues affecting businesses in Australia today and throughout the year ahead.
2017 07 Webinar: Aged Care Financial Performance Update
Want to know what the latest trends are for aged care providers? The StewartBrown Aged Care Financial Performance Survey (ACFPS) incorporates detailed financial and supporting data from over 479 Home Care programs and 869 residential aged care facilities across Australia. The quarterly survey is the largest benchmark within the aged care sector and provides an invaluable insight into the trends and drivers of financial performance at the sector level and at the facility or program level.
2017 07 Aged care enters a pressing cost management phase
It could be said that from the initiation of the new Aged Care Funding Instrument (ACFI) in March of 2008 that the aged care sector was in a ‘revenue phase’ that saw the cumulative Care Income grow to 71% at March 2017 as shown in Figure 1.
Now there will be a number of people who may see this figure and suggest that providers have done very nicely out of this growth, but while the revenue grew, so did the costs. For example Care Wages grew more than 75% in the same time period.
During this same period the Care Result (care revenue minus care expenses) grew from $4.40 per bed day in June 2007 to a sector high of $14.92 in September of 2011.
Then the first fiscal cliff appeared as the government looked to reign in the growth of their share of care revenue, so that by June 2013 the Care Result had fallen back to $6.79 per bed day.
2017 07 Year End Employer Obligations
As the 2017 financial year has just finished we would like to take this opportunity of thanking you for your business over the past 12 months. For those of you who are Employers we recommend reviewing the attached Newsletter to ensure you are aware of and have attended to all the necessary compliance matters affecting your business.
