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  • Dire warning aged-care costs are a ticking 'time bomb'

    Author: AAP

Australians face burgeoning costs to cover the needs of caring for the elderly unless the nation significantly boosts investment in the sector, the chair of a major aged-care company says.

"I believe we're fast heading into a community crisis unlike anything Australia has seen before," Regis Healthcare chair Graham Hodge told shareholders at the company's annual meeting.

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"The demographic time bomb is predictable and relentless, and while some might see the call for increased funding as self interest, I know it's in all our interests to quickly accelerate the capacity of our aged care system to better align with current and future needs."

The current federal government had not caused the problem, but it was crucial the nation tackled the issue, Mr Hodge said on Tuesday.

"All Australians must realise that they too will have to shoulder more of the cost of their care if we're to ease the pressures facing health and aged care sectors," he said.

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More than 200,000 Australians live in aged-care homes, while about one million more receive support through home care services.

As the population continues to age, waitlists for aged-care centres grows, with government figures forecasting the number of Australians aged 85 and over expected to exceed 1.2 million by 2041.

Data suggests about 9,300 new beds are required each year for the next 20 years, tracking with increased demand from the Baby Boomer generation.

The federal government's new Aged Care Act began at the start of November in response the royal commission into aged care services, with an aim to supporting the sector's sustainability.

Changes include separating care into clinical and non-clinical components, with clinical treatments funded by government, while non-clinical care such as bathing, mobility assistance and lifestyle activities facing means-tested co-contributions.

While the legislation was an important milestone, there was more to be done to deliver its intent, Regis managing director Linda Mellors said.

"This will require ongoing co-operation and goodwill between various political parties and stakeholders," she told the meeting.

Regis left its 2026 financial year guidance unchanged with underlying earnings before interest, taxes, depreciation and amortisation expected to be between $130 million and $135 million.

It hosts about 8,200 beds at more than 70 locations, and is targeting 10,000 by the 2028 financial year.

In recent years, Regis had compound annual revenue growth rates and underlying EBITDA of 13-15 per cent.

"Looking ahead, Regis continues to be well positioned to benefit from structural tailwinds including funding reform to accommodation and everyday living, favourable demographic trends and improved workforce availability," Ms Mellors said.

Regis shares slipped in early trade, down 1.7 per cent to $7.32.

The care giant's price has been steadily recovering since September 20, after plunging on the back of a government funding announcement Regis said wouldn't cover increased staffing costs from a Fair Work ruling and enterprise agreements.

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