How to Start an Aged Care Business in Australia: The Complete Guide
If you want to start an aged care business in Australia, there is significant opportunity as demand for quality care continues to grow. However, establishing an aged care business requires more than registering a company. Providers need to consider registration requirements, governance, financial viability, workforce capability, policies, systems and operational readiness before delivering services.
Australia’s aged care sector is a roughly $30 billion market, and it’s growing every year. With 4.2 million
Australians already aged 65 and over, and that number projected to double by 2058, demand for quality aged
care services is running well ahead of supply. For entrepreneurs and business operators, that’s a genuine
opportunity but starting an aged care business is not a weekend project. It requires regulatory approval,
demonstrated governance capability, financial viability, and a clear understanding of the Aged Care Quality
Standards before you can accept your first government-funded client.
This guide walks through the full journey, from choosing your niche through to becoming a registered provider,
with links to detailed guides on each step.
Step 1: Choose Your Niche and Service Model
Aged care isn’t one business it’s several distinct service models, each with different approval pathways,
staffing requirements, and funding mechanisms. Broadly, you’re choosing between home care and in-home
support (including the new Support at Home program), residential aged care facilities, or flexible/specialist care
models. Home care providers support people to remain in their own homes; residential providers deliver 24/7
care in a dedicated facility. Your business plan needs to reflect this choice clearly, because each path has a
materially different cost and complexity profile.
It’s also worth defining your target population early. Are you serving culturally and linguistically diverse
communities? Rural or remote areas? People with complex health needs? A clear niche strengthens your
eventual registration application and differentiates you in a competitive market.
Step 2: Understand the Real Costs Involved
Capital requirements vary enormously by service model. Home care businesses are the lower-cost entry point,
with capital requirements typically running between $240,000 and $480,000 to become operational, you don’t
need a physical facility, but you do need a registered business entity, key personnel, and documented quality
management systems. Residential facilities involve significantly higher capital requirements given the cost of
building or acquiring and fitting out a physical facility.
Step 3: Choose Your Business Structure
Your business structure affects everything, liability, tax, and what your eventual registration application needs
to demonstrate. The three main options are a sole trader structure (simplest and cheapest, but with no legal
separation between you and the business), a partnership (similar, with shared ownership), or a company
structure (the safest option if you want to scale or protect personal assets). Whichever structure you choose,
you’ll need to register your organisation and business name with the Australian Securities and Investments
Commission (ASIC) before you can apply for aged care provider registration.
Step 4: Write a Business Plan That Can Survive Regulatory Scrutiny
Your business plan is not just a strategic document, it’s evidence for your regulatory application. The Aged
Care Quality and Safety Commission (ACQSC) and the Department of Health, Disability and Ageing assess your
plan to determine whether your organisation has the governance, financial capacity, and operational systems to
deliver safe care. A strong plan includes a local needs analysis using demographic data from the Australian
Institute of Health and Welfare (AIHW), an honest assessment of competitor capacity in your target area, and
financial projections that hold up under scrutiny.
Financial viability is assessed closely at this stage too, alongside your organisation’s governance, documentation, workforce capability and operational readiness.
If you are preparing for this stage, our Aged Care Provider Registration guide provides a practical overview of the registration pathway, key requirements and the areas organisations should have in place before progressing with an application.
Step 6: Build Your Team, Policies, and Systems
Before you can register, and certainly before you can operate, you need documented policies and procedures, a
quality management system, appropriately qualified key personnel, and the operational systems (rostering, care
planning, incident management) to run the business day to day. This is also the stage to sort insurance and, if
you’re hiring support workers or carers, police checks and recruitment processes.
Step 7: Learn From Others’ Mistakes
Most applicants who attempt this process alone either stall out or fail their assessment outright, often for
avoidable reasons. Common issues include underestimating the true cost of registration and setup, choosing a
business structure that doesn’t suit long-term growth plans, submitting a business plan that reads as aspirational
rather than evidenced, and under-resourcing the governance and financial systems the Commission expects to
see.
Frequently Asked Questions
How long does it take to start an aged care business in Australia?
Timelines vary significantly by service model and how well-prepared your application is. Between business planning, entity registration and provider registration, most new entrants should expect the process to take several months at minimum.
Do I need government approval to provide aged care services in Australia?
Yes. Government registration and approval are required to provide government-subsidised or funded aged care services in Australia.
Is home care or residential care cheaper to start?
Home care is generally the lower-cost entry point, with capital requirements typically between $240,000 and $480,000, since it does not require a physical facility. Residential care involves significantly higher capital requirements.
What’s the biggest reason new aged care businesses fail to get approved?
Most failed or stalled applications come down to inadequate preparation, particularly weak financial documentation, unclear governance structures, or a business plan that does not hold up as evidence for the regulatory application.
Ready to Start Your Aged Care Business the Right Way?
Starting an aged care business involves real complexity, but it doesn’t have to feel overwhelming.
Whether you’re preparing for provider registration, developing your governance and compliance systems, or getting your organisation operationally ready, Dimarcorp Enterprise Consulting can help you move forward with clarity and confidence.
Learn More About Becoming a Registered Aged Care Provider
Book a Free Consultation with Dimarcorp Enterprise Consulting → Contact us