Melbourne, Australia (PRWEB) September 03, 2014
Operators in the Community Services industry in Australia attend to millions of people annually, arranging care and counsel for those in need. In 2014-15, the subdivision's not-for-profit and private enterprises are expected to derive $39.4 billion in revenue, which includes a combination of government funding, donations and private income. Over the five years through 2014-15, the subdivision is forecast to grow at an annualised rate of 6.6%, including growth of 4.1% in 2014-15.
As the population ages and single-income households look to boost earning capacity, demand for childcare and aged care will continue to accelerate. According to IBISWorld industry analyst Arna Richardson, “While this bodes well for subdivision participants, many operators are subject to supply-side challenges.” As many of these operators rely largely on government funding, which is capped, price signals are often distorted. To this end, the Federal Government is currently undertaking a number of reforms designed to encourage additional private sector and philanthropic investment. In its interim report A New System for Better Employment and Social Outcomes, released in June 2014, the role of civil society underlies one of its four pillars of reform of Australia's welfare system. Furthermore, in 2014-15, the government will re-establish the Community Business Partnership as it seeks to grow the role of community-based organisations and volunteers.
The industry exhibits a low level of market share concentration, and there are no major players. Over the next five years, organisations across the board will be challenged by new operating requirements. The Child Care Services industry, for example, will have to meet new staff-to-child ratios and staff will be required to have a minimum level of qualifications under the new National Quality Framework. “Nursing home and aged-care accommodation operators will also have to meet new accreditation standards set by the new Australian Aged Care Quality Agency,” says Richardson. In addition to these operational challenges, the subdivision will also have to contend with the government's proposed changes to Australia's welfare system as it seeks to cut budget deficits and reinstate an income support system with a stronger focus on both employment and community capacity. In view of this, over the five years through 2019-20, revenue growth for the Community Services industry is expected to be marginally slower than the past five years. Rising demand from Australia's ageing population will be one of the key growth drivers over this period.
For more information, visit IBISWorld’s Community Services industry in Australia report page.
Community service providers offer largely ancillary services to health provision and social assistance programs, such as homes for the mentally ill or victims of substance abuse. Largely, these services provide greater opportunity for Australians to contribute to the economy or care for those who cannot. For example, childcare providers allow parents to remain in the workforce. The bulk of these services are offered through a combination of government and private funding.
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