Thinking of Buying an Aged Care Business in Australia? Here Are 3 Vital Questions to Ask

Australia’s aged care industry is valued at $27.1 billion in 2023–24, with strong projected growth to $30.4 billion by 2028–29.

Demand is being driven by demographic shifts, with the proportion of Australians aged over 70 expected to increase from 12.6% to 15.3% by 2043.

With 75% of sector revenue supported by government funding and average occupancy rates near 88%, aged care presents a long-term opportunity for buyers seeking asset-backed, recurring income businesses.

1. Is the Business Financially and Operationally Viable?

Why It Matters:

The industry’s average profit margin has declined to 5.1% due to increased staffing costs, inflation, and new compliance requirements.

Capital intensity is high, with operators needing to invest in modern facilities and meet minimum care staffing standards under the AN-ACC funding model.

Buyers must also evaluate whether government funding and resident contributions are sufficient to sustain operations and profitability.

What to Check:

• EBITDA margin and funding mix: How much of revenue comes from Commonwealth subsidies vs. resident fees?
  
  

• Labour costs: Are staffing levels compliant with care minute requirements, and how do they impact margins?
  
  

• Occupancy trends: Is the facility consistently above 85% occupancy, the benchmark for financial stability?
  
  

• Real estate structure: Is the business freehold or leasehold, and how does this affect long-term asset value?

2. Does the Business Hold Strong Accreditation and Compliance History?

Why It Matters:

The aged care sector is highly regulated, with businesses required to maintain accreditation from the Aged Care Quality and Safety Commission.

Facilities must comply with quality standards, publish star ratings, and meet care staffing thresholds, or risk sanctions and reputational damage.

Approved Provider status is critical and non-transferable without regulatory approval.

What to Check:

• Accreditation status: Is the facility fully accredited and compliant under the Aged Care Quality Standards?
  
  

• Star ratings: What are the facility’s publicly disclosed ratings across key care and safety indicators?
  
  

• Regulatory history: Are there any past or ongoing sanctions, warnings, or non-compliance notices?
  
  

• Workforce accreditation: Are staff qualified and compliant with mandatory training requirements?

3. Is the Business Positioned to Meet Emerging Market Demands?

Why It Matters:

Specialised care services, such as dementia care and culturally tailored programs, are increasingly in demand as Australia’s population ages and diversifies.

Facilities that integrate technology, offer palliative care, or provide flexible accommodation models are best positioned for growth.

Strategic buyers should also evaluate redevelopment or expansion potential, especially in high-growth or undersupplied regions.

What to Check:

• Service model: Does the business offer high-care, memory support, or culturally specific programs?
  
  

• Technology use: Are there care coordination platforms or resident monitoring systems in place?
  
  

• Location and demographics: Is the facility located in a region with growing aged populations or limited service supply?
  
  

• Infrastructure scalability: Can the facility be expanded or upgraded to meet future care standards?

Ready to Invest in a Thriving Aged Care Business?

With a $30.4 billion market on the horizon and growing demand for high-quality, compliant aged care, this sector offers strong potential for experienced operators and committed investors.

Facilities that prioritise care standards, regulatory compliance, and skilled staffing will lead the next phase of aged care delivery in Australia.

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