Recent sector data confirms that residential aged care providers are still facing significant financial strain, even as occupancy levels rise.
StewartBrown’s September 2025 Aged Care Performance Survey Analysis shows that 59 per cent of aged care homes are operating at a loss nationally. Occupancy increased to 94.9 per cent and is expected to exceed 96 per cent in the coming years. Despite this, the average operating result worsened to a loss of $7.14 per bed per day.
One of the main pressures is the decline in AN-ACC margins, which dropped from $16.10 per bed per day in FY25 to $11.84 in the September quarter. Accommodation margins also deteriorated further. Metropolitan homes classified as Modified Monash Model 1 continue to face additional challenges, as they do not receive the same tariff loadings available to regional and rural services.
Home care performance improved slightly, but overall operating margins across the sector remain below levels considered sustainable for long-term investment.
With more than half of homes running at a deficit, the findings strengthen calls for funding reform to ensure providers can meet future demand while remaining financially viable.