ACSA says low interest loans will improve access to aged care

The Government’s confirmation of a $300 million low interest loan scheme to support construction of aged care homes in areas of high need should help to improve access to residential aged care, Aged and Community Services Australia (ACSA) chief executive officer, Greg Mundy, said.

“All Australians should have access to aged care services regardless of where they live. Unfortunately the economics of aged care are such that some areas are very difficult to provide services in.

“Services in rural and remote areas, in poorer suburbs and in areas of low home ownership are only able to be provided because of the enormous input of local communities, church and charitable organisations and, in some areas state and local governments.”

“Access to low cost finance should augment these efforts and help to ensure that residential aged care facilities can be built where they are needed,” he said.

“Providing low interest finance is a new measure and the amount involved, up to $300 million over four years, is small compared with the overall capital requirements of aged care estimated by Pricewaterhouse Coopers last year to require an additional $5.7 billion between now and 2020. Nonetheless it is important to test new approaches and ones designed to meet the needs of disadvantaged communities.

“For the first time in recent memory last year’s allocation of new aged care beds was undersubscribed in two states, Western Australia and Tasmania. This is a measure of just how tight the economics of aged care are.

“Low interest finance may help these states but attention to the core financing of aged care, ensuring that Federal Government subsidies keep pace with the costs of providing quality care and that user charges are both equitable and adequate will be required to ensure a lasting and comprehensive solution to problems of access,” Mr Mundy concluded.

“We need action on these issues in this year’s budget.”

ACSA represents over 1,200 church, charitable and community-based organisations providing housing, supported accommodation and community care services to around 700,000 older Australians, people with a disability and their carers.