Zero real interest loans – call for applications and release of timetable for stage one

The Australian Government has run newspaper advertisements on 12 April calling for applications and releasing the timetable for Stage One of its election commitment for $300 million zero real interest loans to build or expand aged care beds in areas of high need.

The plan is expected to create 2,500 permanent residential aged care places in areas of high need such as regional and undersupplied areas. 

The three-part delivery plan comprises: 

Stage One: an initial $150 million zero real interest loans for up to 1,250 residential aged care places provided by the Commonwealth;  a review and evaluation within 18 months* – to determine the implementation arrangements for the remaining 1,250 places; and 

Stage Two: providing the second set of 1,250 places – $150 million zero real interest loans.

(*The 18 month review will take into account the effectiveness of the plan and the definition of areas of high need)

Stage One loans timetable

12 April 2008 – Providers of residential aged care invited to submit proposals

6 June 2008 – Applications close

Early August – Announcement of loans/places

Only those applicants who meet the zero real interest loan eligibility criteria will be considered for an allocation of places.  

State, territory and local government entities will be permitted to apply for the loans as in some small regional centres and rural and remote areas they are the only operators.

The loans are over 12 years and will target parts of Queensland, the Northern Territory, New South Wales, Victoria, Western Australia and South Australia. All of the Northern Territory (with special attention to Aboriginal needs) and Tasmania are targeted.

The department’s areas of need are as follows: 

In general, areas selected are non-metropolitan regions with operational residential aged care ratios below the current national target ratio of 88 residential places per 1,000 people aged 70 years and over and where there are not a large number of recently allocated places already under development.

While in general metropolitan areas have been excluded, included are those metropolitan areas in Perth which failed to attract a sufficient number of quality applications in recent Aged Care Approvals Rounds to allocate all available places, and which have large indicative releases in future years.

All of Tasmania has been included because of the inability to allocate all available places in the previous Round.

Some non-metropolitan regions with higher ratios have been included because of the high proportion of indigenous people who require care at an earlier age; and in some larger non-metropolitan regions, specific geographic locations within those regions have been targeted where there are particular areas of undersupply.

The Department will not advertise set numbers of places in particular areas. Providers will be able to apply for both high and low care residential places and for community care places as part of an overall application to set up services in targeted locations.