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.
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.
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.
Year End Employer Obligations 2017
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.
March 2017 Aged Care Sector Reports Released
The StewartBrown Aged Care Financial Performance Survey incorporates detailed financial and supporting data from over 865 residential aged care facilities and 475 home care programs 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.
