Aged care loans round announced – WA and Tas responses

The Minister for Ageing, Mrs Justine Elliot, announced that there would be in total, 1,455 beds and community care packages nationally in this year’s aged care loans round.

The loans round announced includes, 375 beds and community care packages in Western Australia ($46.6 million), and 154 bed and packages in Tasmania ($16.07 million).

WA and Tasmania were previously under subscribed in last year’s Aged Care Approvals Round (ACAR) process.

In addition, NSW received 293 beds and packages ($30.1 million); Victoria received 246 beds ($19.7 million); Queensland received 259 beds and packages ($24.7 million) and South Australia received 128 beds ($12.8 million).

Summary of offers – 2008 Loans Round 

The aged care providers will obtain the loans and the Federal Government will cover the cost of the interest on those loans. This is expected to be about $11.5 million over the forward estimates.

Following a review of the first stage of the loans, Stage Two would provide the remaining $150 million in loans and the balance of the places.

The review will examine the effectiveness of the first round and nominate areas for refinement such as new areas of high need and definitions.

Applicants needed to have a sound financial base and proven experience in residential aged care, as well as a willingness to provide aged care services in areas of high need.

Successful applicants have been offered a loan to build or expand nursing homes and respite facilities to which only CPI is applied.

Industry groups in both states have welcomed the funding but they say further initiatives are needed to provide for the ongoing needs of an ageing population.

The chief executive officer (CEO) of Aged and Community Services Tasmania, Darren Matthewson, said that while the loans would provide short term assistance for providers, significant barriers still remained.
 
“There were two reasons why providers did not pick up all the places in last year’s Aged Care Approvals Round,” said Mr Matthewson.

“It was partly because of the cost of building, but it was also because providers are having general issues with viability trying to keep up with the costs of care.”

Anne-Marie Archer from Aged Care Association Australia WA said the loans were a good initial step, but she added that long term solutions are still required.

“We are appreciative of the fact that the Government has recognised the dire need in WA,” said Ms Archer.

“It is reflection of the situation in our state at the moment, where a lot of providers are unable to build, because of the rising costs of construction.”

Details of the offers made to the recommended applicants will be published on the Department of Health and Ageing website at:

www.health.gov.au