Attracting proven aged care providers to areas of high need

March 26, 2008

Member for Eden-Monaro Mike Kelly has welcomed the Federal Government’s
announcement of $300 million in zero real interest loans for aged care
providers to build or expand aged care beds in areas of “high need”.

Most of Eden-Monaro is an area of high need. The Government plans to
create 2,500 permanent residential aged care places in regional “high
need” and “undersupplied” areas.

Dr Kelly said the Rudd Government is delivering on its election
commitment to provide the loans.

“This is about finding new ways to get proven providers - through low
cost finance - to establish aged care services in areas where they were
previously unlikely to invest,” he said. “For 12 years, the previous
Government neglected aged care and the needs of older Australians. Our
Government is serious about preparing Australia for the challenges of
the 21st century and our nation’s long-term needs.”

Australia is facing a demographic shift, Dr Kelly said. Australians now
have one of the world’s longest life expectancy rates. An Australian
born today can expect to live on average to 80.9 years of age - 78.5
years for a man and 83.3 for a woman.

The three-part delivery plan for aged care providers comprises:
• Stage One: An initial $150 million zero real interest
  12-year 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.

Applications will open in early April and forms will be available from
the Department of Health and Ageing and on the website.

To ensure accountability and transparency, the Department of Health and
Ageing will independently assess the applications and oversee the
application process for the loans.

Guidelines, definitions of “high need” and criteria for the zero real
interest loans are recommended by the Department of Health and Ageing.

The Department of Health and Ageing oversees more than 2870 accredited
nursing homes with 167,070 aged care beds across Australia.