Govt gives $300m loans go ahead

The Federal cabinet has given the green light to the promised $300m zero-interest loans for areas of “high need”.

The $300 million zero-interest loans promised by the Labor Party in the lead up to last year’s federal election have been given the green light by Federal cabinet.

It is estimated that the loans will deliver 2500 extra permanent residential aged care places in areas of “high need” and “undersupplied” regions.

The package will be delivered in two stages with a review and evaluation after the first $150 million installment.

The application process will be managed independently by the Department of Health and Ageing, which will also develop guidelines and criteria for the assessment process.

Aged and Community Services Australia CEO, Greg Mundy welcomed the changes, saying aged care provision was much more difficult in certain areas.

“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,” he said.

“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.”

Mr Mundy said the Government also needed to pay more attention to the core financing of aged care as well as ensuring that user charges are both equitable and adequate.

“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,” he said.

Applications for the first stage will begin next month and will be processed by the Department’s Ageing and Aged Care Division.

The eligibility criteria for the loans include:
– A good record as a service provider;
– A sound record of developing new services in a timely manner;
– Sound financial viability;
– A willingness to provide aged care services in the identified areas of high need and address any additional identified care needs; and
– The ability to access a suitable site.

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