Global accountancy firm Grant Thornton today released a report outlining what needs to change to attract more investment to the aged care sector.
The sector’s capital needs are huge, the report states.
With Australia’s ageing population meaning demand for residential aged care services is expected to double by 2031, as well as increased construction costs and the amount of refurbishment required, Grant Thornton predicts the investment required for residential aged care will be $72.3 billion over the next seven years, primarily in the For Profit sector.
The sector is far less attractive than other industries from an investment perspective, due to low returns, high and variable regulation, regulated revenues and access to workforce.
“The sector is neither retaining capital nor attracting it”, Grant Thornton said in a statement.
“The aged care capital model needs to be structured in such a way that it is actually attractive to investors,” Grant Thornton National Head of Heath & Aged Care, Darrell Price said.
To read the report in full, click HERE.
The SOURCE: The Aged Care Taskforce will be advising the Government on increasing investment in new and refurbished aged care beds as part of its remit. Will their advice cover a $72 billion price tag?
