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Government data shows shrinking home care margins

1 min read

Home care operator EBITDA margins fell to 7.1% as of 31 December 2024, down from 8.1% the previous year, according to the Government’s December 2025-26 Quarterly Financial Snapshot.

In the December 2024-25 quarter, EBITDA per care recipient per day (pcrpd) increased $0.49 to $6.22 pcrpd, an 8.6% increase.

Both revenue and expenses increased by 19.1% for the period.

These revenue increases were driven by a 7.9% increase in claim days and the increased utilisation of Home Care Packages, which rose from 80.7% in the December quarter 2023-24 to 85.8% for the December quarter 2025-26.

Expense increases were driven mainly by the higher labour costs associated with the increased claim days and Package utilisation.

The median care management amount was 17% per Home Care Package, significantly higher than the 10% provided under the incoming Support at Home reforms.

40 home care providers also entered the sector in the year to December 2024, while 18 left the sector.

Read the 37-page report here.


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