Health care and social assistance industry

How businesses operate

The industry includes private and not-for-profit businesses of all sizes. Many businesses:

• operate in a highly regulated environment
• get income from a mix of client fees, insurers and government funding
• provide services in local communities, including clinics, community centres and homes
• work closely with clients, patients and their families.

Demand and competition

Demand in this industry can vary depending on population needs, workforce availability and where your business operates. For example:

• Australia's ageing population may increase demand for services.
• Preventive health is a current government focus. Businesses that help people stay healthy may see more demand for their services.
• A shortage of qualified workers means businesses may compete for staff.
• Some regional and remote areas have less access to health care and social support services. Businesses in these areas may see higher demand for their services.

Digital tools

Many businesses use digital tools to manage daily work, staff, clients and records. These tools can keep track of work, but they can also introduce risks, such as cyber threats.

Common tools include:

• electronic health records to store patient records
• practice management software to schedule appointments and services
• workforce management systems to plan staff rosters and workloads
• telehealth platforms for appointments by phone or video
• case management systems to track client care plans and support services.

Risks and challenges

Running a health care or social assistance business can present workforce, service delivery and funding challenges. For example:

• finding and keeping qualified workers
• managing stress and burnout in roles that support people with complex needs
• working with different funding sources and pricing rules, such as Medicare and private health insurance payments
• maintaining service quality while demand grows.

Knowing which business risks affect you can help you plan and manage your business.

Industry statistics

Data can help you understand how businesses in this industry perform and how your business compares.

You can:

• explore annual estimates of industry income, costs, profit and capital expenditure at the Australian Bureau of Statistics
• compare your business’s performance against similar ones using the Australian Taxation Office's small business benchmarks
• get the latest job market trends and insights at Jobs and Skills Australia
• access early childhood data and reports from the Department of Education to learn about child care trends and demand
• use the Care Sector Demand Map to explore participation, spending and services data for the National Disability Insurance Scheme (NDIS) and Aged Care.

These are some laws you may need to follow:

• Competition and fair trading laws are set out in the Competition and Consumer Act 2010.
• Rules about pricing, refunds, contracts and advertising are set out in Australian Consumer Law (ACL).
• The Privacy Act 1988 may apply if you collect personal details about clients, patients, children or their families.
• NDIS-registered businesses must follow the NDIS Act and rules.
• Child care services must follow the National Quality Framework.
• State, territory and federal child safety laws may apply if your business works with children or young people.
• People in certain roles must report child abuse and neglect to state or territory authorities.
• Some medical and allied health professions must follow the Health Practitioner Regulation National Law. This includes registration and professional standards.
• Aged care services must follow multiple aged care laws. This includes the Aged Care Act 2024, Aged Care Rules and Aged Care Diversity Framework.

Federal, state, territory and local governments manage the licences and permits for this industry.

You may need licences and permits to:

• work as a medical or allied health practitioner
• support NDIS participants
• run a child care business
• prepare and serve food in settings such as aged care
• handle and dispose of clinical or medical waste
• fundraise for charitable or community purposes.

All businesses have a duty of care under work health and safety (WHS) laws and must take reasonable steps to keep workers, clients and the public safe. This includes volunteers.

Common WHS risks in this industry include:

• injuries from lifting and moving people
• violence and aggression from patients, clients or service users
• exposure to infectious diseases and biological hazards
• working alone without immediate access to help in clients' homes or other remote locations
• injuries from medical equipment.

Safe Work Australia has information about WHS duties and managing risks in the health care and social assistance industry.

Mental health and wellbeing

Workers in this industry may experience:

• high workloads
• exposure to trauma, illness, injury or death
• challenging client behaviours.

These factors can increase the risk of stress, fatigue, burnout and psychological injury.

The health care and social assistance industry is the largest employing industry in Australia.

Make sure you know which workplace laws you need to follow before you create an employment contract or hire contractors.

If you hire overseas workers, check they have the right visa to work in Australia.

Screening checks

You need to check the background of some employees and volunteers before they can work in certain roles. For example:

• disability support workers may need an NDIS worker screening clearance
• aged care workers may need an NDIS clearance or police check
• workers in child-related work, such as child care or child health services, may need state or territory screening checks.

Professional registration

Some health professionals must register with the Australian Health Practitioner Regulation Agency (Ahpra) before they can practise. This includes acupuncturists, dental hygienists, osteopaths and podiatrists.

If you employ registered health practitioners, you must:

• check with Ahpra that they hold a current registration
• review registrations regularly for any changes
• tell Ahpra if you believe a practitioner's conduct, performance or health puts the public at risk.

If your business offers services under Medicare, check that your employees meet the professional recognition rules. For example, dietitians must be an accredited practising dietitian.

Skills and training

Many health practitioners need to complete ongoing professional development to keep their registration or professional status. Consider how you will support this when planning staff training.

If you run a regulated service, make sure your workers have the right skills, qualifications, training and supervision. This includes:

• child care providers
• registered NDIS providers
• aged care providers.

Your tax obligations depend on your business structure, the work you do and how you get paid.

Some products and services in this industry are goods and services tax (GST) free. This includes some:

• health services and equipment
• supports for NDIS participants
• child care services
• home care services
• residential care services.

Report personal services income (PSI) if you earn money mainly from your labour or skills. For example, income earned as a sole trader in disability support.

Not-for-profit businesses may have different tax obligations and be eligible for concessions, credits and refunds.

Many businesses in this industry use a lot of energy, water and supplies. They also create waste and greenhouse gas emissions.

For example, you may:

• generate medical or pharmaceutical waste that needs safe disposal
• use a lot of energy and water when washing sheets, towels and clothing in residential care settings
• create food waste in centres caring for children or adults
• use single-use products and packaging in health and care services
• create transport emissions when driving to clients’ homes or community locations.

You can reduce your environmental impact through better waste management, less travel and more sustainable ways of working.

It is important to protect your intellectual property (IP) when starting and growing your business. These are your business’s original ideas, inventions, brands and content.

The type of IP protection that applies depends on what you create. For example:

• a patent may protect an invention, such as a medical device or digital health tool
• a design right may protect the look of a product you design, such as a new style of orthotic
• copyright may protect written materials you create, such as patient information sheets, therapy manuals or learning guides for children.