Loan scheme targets WA and Tas
The first round of loans for areas of high need has been announced but industry groups say long-term solutions are still neeeded.
Western Australia and Tasmania have been targeted in the first round of the Rudd Government’s zero interest loans in areas of high need.
Almost a third of the $150 million will go to WA to provide 375 beds and community care packages, while Tasmania will receive $16 million for 130 residential and 24 community places.
The Minister for Ageing, Justine Elliot said these two states received extra attention because they were undersubscribed in last year’s Aged Care Approvals Round (ACAR).
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 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 didn’t 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.”
Mr Matthewson said that the 130 new residential places in Tasmania were being shared among five providers, with the bulk of places going to just two operators.
In the west, it is understood that the situation is so bad that some providers are even considering handing back provisional licenses from previous ACARs.
Anne-Marie Archer from Aged Care Association Australia Western Australia said the loans were a good initial step but 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.”
Other big winners in the first round were New South Wales and Queensland, with $30 million and $25 million in loans, respectively.
A second round of zero interest loans will go ahead, following a review of the uptake of the first $150 million.
