Economic Report · MCU18/0019

2 Aged Care in Context

2.1 National Dynamics
Aged care is a rapidly growing economic sector in Australia. The sector generated
an estimated $13.5 billion of direct value-added in 2014/15 (Deloitte, 2016).
Indirectly the sector contributed a further $4.1 billion by utilising inputs from other
industries such as food, accommodation and medical services and the downstream
economic activity generated through the payment of wages occasioned by these
industries.
The sector is expected to grow significantly into the future. The Commonwealth
Government Treasury’s 2015 Intergenerational Report estimated that the number of
Australians aged 65 years and over is expected to more than double over the next
40 years. This will result in numbers increasing from 3.6 million persons in 2014/15
to 8.9 million persons in 2054/ 55. Consistent with this growth trend, the Aged Care
Financial Authority estimates that 76,000 new residential aged care places will be
needed by 2023/24 to meet demand.
The Australian aged care sector is growing not just because of an ageing
population. It is also changing due to increased longevity. This is contributing to
developments in the range and depth of services needed to accommodate the
needs of the ageing population into the future.
The sector is already responding to an increasing emphasis on consumer choice.
More Australians are choosing to ‘age in place’ wherever possible. This is leading to
higher uptake of home care services and increased levels of dependency among
those who eventually opt for residential aged care. In the residential aged care
sector, providers are increasingly tailoring services to the needs of individual
residents including through the provision of independent living arrangements,
modern facilities and personalised care. Finally, as ‘baby boomers’ age and enter
aged care, this demographic is demanding a higher level and more complex care.

2.2 Noosa Economic Plan
Noosa has a number of preconditions enabling it to effectively meet this growing
demand for aged care services. Noosa already has a disproportionate concentration
of persons aged 65 years and over. In 2016 (Census 2016), 24% of Noosa’s
residents were aged 65 years and over. This compared to 5.8% for Australia as a
whole. As such, Noosa’s median age is considerably higher (48 years) than is the
case for Queensland (37 years) and Australia (38 years).




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