ACCAP Round 2 allocates $250 million for regional, rural and remote aged care

The government's Aged Care Capital Assistance Program (ACCAP) is investing $250 million for the improvement of regional, rural and remote aged care facilities. A $50 million increase on what the department promised in June.

Applications for Round 2 of capital assistance funding closed in late August. Grants can be used for the establishment of new facilities or to update existing ones, and for maintenance and safety improvements and staff accommodation.

Minister for Aged Care Anika Wells said on Thursday that the government is committed to ensuring all older Australians have access to safe and quality aged care services, no matter where they choose to live.

“Round 2 of ACCAP will help rural and remote aged care providers to deliver appropriate cultural care and create more home-like environments, with comfortable and modern amenities, more liveable spaces and fewer shared rooms,” she said.

“The Albanese Government continues to invest grant funding at unprecedented levels to support aged care providers outside of major cities, along with those that deliver specialist services.”

For Round 2, the Department of Health and Aged Care extended eligibility to include all regional areas, from regional centres to very remote communities (MM2-7), and will see a total of 52 projects funded across all states and territories, with the exception of the ACT, with $50 million dedicated to the support of older Aboriginal and Torres Strait Islanders.

Twenty-five million will be allocated to five Aboriginal Community Controlled Organisations to support and improve services delivered by the National Aboriginal and Flexible Aged Care Program, an initiative designed to facilitate more culturally specific care to First Nation's communities in rural and remote Australia.

Another $25 million will be used in the construction of a new 100-bed aged care home for First Nations people in Perth.

The funding will result in delivering over 400 more aged care beds across the nation, bringing much needed support to a number of regional aged care providers, however, the Department of Health and Aged Care reported that this round of ACCAP funding received 397 applications for a total of $1.7 billion - a strong indicator that many facilities require essential upgrades, but cannot afford them.

This demand has only grown since the allocation of $134.9 million in Round 1 (which received 297 applications for projects worth around $1 billion), with the extended location eligibility opening the door to even fiercer competition for funds.

Under the ACCAP program the government has promised to allocate a total of $666.5 million until 30 June 2028. After that, Labor has promised to make at least $161 million available per year on an ongoing basis.

Applications for the next round of ACCAP funding are expected to open in the first half of 2025.