Payroll tax may not be a sexy topic, but the benefits for Catholic not-for-profit Calvary Health Care gets from acquiring aged care business Japara Healthcare are enough to cause other industry players to break out in a hot flush.

Thanks to not-for-profits not incurring payroll tax expenses, Jarden estimates this would result in an $18 million benefit to Japara, if Calvary’s $1.40 per share bid is successful, roughly doubling its earnings before interest, tax, depreciation and amortisation.