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One of the major changes in the aged care industry is fairer and more transparent pricing. Support at Home, which replaced Home Care Packages, is aimed at making it all about older Australians. Before the transition occurred in November 2025, care providers had already changed their pricing and saw an increase in profits per client.
However, after the Support at Home transition, businesses are not meeting the recommended profit margin to become or remain investable. One of the oldest, independent accounting firms in Australia, StewartBrown, has made an Aged Care Financial Performance Survey Analysis Report. They recommended a 9.5% average profit margin for care businesses, but the highest achieved was only 8.6%.
Care providers are not allowed to set prices too high, but they also need a profit, so they will have enough capital for investing in better care for their clients. This can be investing in new delivery methods, service types, or technology. If the government sets prices way too low, these care businesses may not be able to survive.
For more information on the state of home care margins, visit www.australianageingagenda.com.au.