Australia’s disability and aged care sectors are undergoing major funding and compliance reform. With new NDIS legislation and changes to the Aged Care Act and AN-ACC pricing, these shifts are already influencing how businesses operate — and how buyers and sellers approach deals.
1. What’s Changing
- NDIS: The Getting the NDIS Back on Track Act 2024 tightens eligibility, service definitions, and compliance oversight. Providers face stricter pricing rules and heavier admin requirements.
- Aged Care: The Aged Care Act 2024 (effective late 2025) builds on the AN-ACC model, lifting base subsidies and hotelling supplements, but also increasing reporting, staffing, and quality obligations.
In short, the goal is accountability and sustainability — but it’s increasing operational costs and complexity for providers.
2. The Market Impact
Buyers are cautious.
More rigorous due diligence, compliance reviews, and risk assessment are becoming standard. Buyers are favouring larger, well-governed providers that can absorb regulatory costs.
Sellers need to be ready.
Businesses without strong systems, documentation, and compliance practices risk discounted offers — or being overlooked altogether. Buyers are paying premiums for scale, data transparency, and proven profitability.
Deal flow is steady but selective.
Some transactions are delayed while operators wait for clarity on funding. Multiples remain solid for strong operators, but those with compliance or staffing issues are seeing softer valuations.
3. Valuation Trends
Valuations are increasingly tied to:
- Compliance strength and documentation quality
- Diverse revenue sources (across aged care, home care, disability)
- Scalable systems that meet new reporting standards
- Staffing stability and cost management
Operators who can demonstrate governance, efficiency and growth potential continue to attract competitive buyers — even in a more cautious market.
4. What to Do Next
- If selling: Conduct a compliance health check, tighten financials, and prepare for deeper buyer scrutiny.
- If buying: Focus on quality of earnings, workforce resilience, and funding exposure.
- If holding: Build value now with improved systems, diversification and readiness for the 2025 reforms.
Your Next Step
The aged care and NDIS sectors remain strong — but the rulebook is changing fast.
If you’re considering selling, acquiring, or valuing a business in this space, now’s the time to act.
Book a confidential call with Magellan Business Sales to discuss how these reforms may impact your business and its market value.