Aged care construction stirs after four flat years
The Australian Government expects 1,700 beds to come online this financial year, and another 4,000 to be built the following year.
After four consecutive years in freefall, aged care construction finally lifted in 2023-24, the latest Operation of the Aged Care Act report confirms.
The estimated building work conducted in the year to 30 June 2024 totalled $4.2 billion, up 17.3% from the previous year, the report states.
New construction work has increased for two consecutive years, up 15% to $2.6 billion in FY24 and up 24% over the two years to 30 June 2024.
The proportion of operators building also picked up, with 17.2% of aged care homes either completing work during 2023-24 or with work in progress at the end of the year, up from 14.5% the previous year.
The Department of Health, Disability and Ageing estimates 10,600 care beds will be needed annually to meet growing demand. Yet, only 578 new places were added to the system last year.
The data is backed up with comments during Senate Estimates last week. Jessica Evans, Assistant Secretary, Market and Workforce Division Evans, with the Department, said they expect 1,700 beds to come online this financial year, and another 4,000 to be built the following financial year.
