On for young and old: Demand for child care and aged care has risen, boosting revenue

Community services organisations play an important role in supporting Australia's welfare system, attending to millions of Australians annually by arranging care and counsel for those in need, including the economically disadvantaged and other vulnerable members of society, such as children and the elderly. According to the latest Australian Charities Report, 11% of Australia's 49,500 registered charities provided social services, with aged care charities accounting for just under 3% of all registered charities in 2016 (latest data available). Not-for-profit organisations and private enterprises in the Community Services subdivision are expected to earn $51.3 billion in revenue in 2018-19 from government funding, donations and private income...read more.

Industry Statistics & Market Size
Revenue
$51bn
Annual Growth 14-19
5.8%
Forecast Growth 19-24
Profit
Employment
633,173
Businesses
16,909
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The ageing population and demand for child care are the major drivers of demand
  • Changes in government policy have significantly influenced subdivision revenue
  • The share of the population under 14 years is projected to grow, boosting demand for child care
  • Industry Report - Industry Investment Chapter

    All the industries in the Community Services subdivision display a high level of labour intensity. This reflects the reliance on labour as the main input in the provision of various community care services, whether the provision of child care, aged care or counselling services. In these instances, there is a high carer-to-patient/child ratio.In comparison, the annual cost of capital is minimal. The use of capital extends beyond land and property, and includes machines and aids used to support users. For example, in aged-accommodation centres that provide for the elderly and infirm, equipment to assist with movement and medical equipment to deal with emergency health situations can be a significant expense. Ove...purchase to read more.

    Additional Insights for the Community Services Industry

    IBISWorld has determined the most important Key Success Factors for the Community Services are:

  • Effective cost controls
  • Must comply with government regulations
  • Ability to raise revenue from additional sources
  • IBISWorld analysts also discuss how external factors such as Total government expenditure on aged care services and Population aged 70 and older in the Community Services industry impact industry performance..

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    What's in this report

    What is the Community Services Industry?

    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. These services generally provide Australians with greater opportunities to contribute to the economy or care for those who cannot. For example, childcare providers allow parents to remain in the workforce. Most of these services are offered through a combination of government and private funding.

    Industry Products
  • Personal welfare services
  • Child care services
  • Aged care residential services
  • Crisis and care accommodation
  • Industry Activities
  • Providing childcare services
  • Providing personal welfare services
  • Providing crisis and care accommodation
  • Providing aged-care accommodation including nursing homes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total government expenditure on aged care services
  • Population aged 70 and older
  • Real household discretionary income
  • Females in the labour force
  • Population aged 14 and younger

  • Current Performance
  • Pressure on providers
  • Funding trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Strong fundamentals
  • New reform challenges
  • Table: Community Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Community Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Employment Placement and Recruitment Services
  • Real Estate Services
  • Religious Services
  • Supermarkets and Grocery Stores

  • Products & Services
  • Aged care residential services
  • Personal welfare services
  • Child care services
  • Crisis and care accommodation
  • Chart: Community Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 65 and over
  • Families, youth and children
  • Other welfare recipients
  • Chart: Major Market Segmentation for the Community Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Community Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Community Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Community Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Community Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Child Care Rebate
  • The Child Care Rebate helps towards out-of-pocket childcare expenses and is paid in addition to the Child Care Benefit.
  • Child Care Subsidy (Ccs)
  • This came into effect on 2 July 2018 and replaces the Child Care Benefit and the Child Care Rebate. The CCS is paid directly to childcare operators.
  • National Quality Standard
  • A standard that sets out a new national benchmark for the quality of children's education and care services.
  • Respite Care
  • Short-term substitute care that enables carers to take a break. Care is provided in the home, in day centres or residential aged-care facilities.
  • What Our Customers Say

    Why buy this report?

    The Community Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Community Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Community Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Community Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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