Eight projects advance under WA aged care loan scheme

The West Australian government says its $100 million Aged Care Low Interest Loan Scheme has attracted strong interest from aged care providers, with eight organisations successfully progressing to negotiations for projects designed to expand residential aged care capacity across the state.

The scheme, announced by the Cook Government earlier this year, offers loans of up to $20 million over terms of up to 15 years to support the construction, upgrade or refurbishment of aged care homes.

The Government said applications demonstrated significant demand from providers looking to increase the number of concessional and supported aged care places as pressure on the sector continues to grow.

Following a competitive assessment process, negotiations will now begin with eight conditionally recommended providers. Successful projects will be announced once discussions are finalised.

Premier Roger Cook said the initiative was designed to improve access to care for older Western Australians while supporting the broader health system.

“My government's priority is ensuring Western Australians have access to the healthcare they need, when they need it,” he said.

“That's why we have introduced this nation-leading loan scheme.

“These loans will improve the sector's capacity to care for older Western Australians, taking pressure off our hospitals and delivering good outcomes across our State's healthcare system.”

The scheme is expected to increase the supply of concessional residential aged care places by helping providers fund infrastructure projects that may otherwise struggle to proceed.

The loans are also intended to encourage investment in regional and remote communities, while supporting modern facilities capable of caring for residents with increasingly complex needs.

Aged Care and Seniors Minister Simone McGurk said the initiative was about more than simply creating additional beds.

“This is an important milestone in delivering our election commitment and increasing aged care capacity across Western Australia,” she said.

“These aged care loans are about more than increasing bed numbers. They are about supporting modern, fit-for-purpose facilities that can respond to increasingly complex care needs while improving quality of life for residents.”

The WA initiative reflects a growing trend of state governments stepping in to address aged care infrastructure shortages, despite residential aged care being funded and regulated by the Commonwealth.

In February, South Australia's Labor government proposed a $250 million no-interest loan scheme aimed at creating additional aged care places and easing hospital congestion. Industry groups welcomed the proposal, arguing that aged care capacity constraints are increasingly affecting hospitals across the country.

Ms McGurk said the WA program would help improve long-term sustainability across the sector.

“By partnering with industry through this innovative financing model, the Cook Government is helping to strengthen the long-term sustainability of the aged care sector and ensuring Western Australians can access the care and support they deserve as they age,” she said.

“The Aged Care Low Interest Loan Scheme will support projects that improve barriers to accessing residential aged care, particularly for Western Australians who may have fewer financial resources.”