SA Premier’s $250M no-interest loan program for new aged care beds – if re-elected
It’s State election time in South Australia and the political promises are coming thick and fast.
Labor Premier Peter Malinauskas, who had a visit from Prime Minister Anthony Albanese on Saturday 31 January 2026, had already promised to redevelop land at Adelaide University’s Magill Campus for an aged care and retirement living facility, although not before 2033-34.
Now with the Prime Minister out of earshot, the SA Premier has announced a $250 million no-interest loan offer to fund the construction of 650 aged care places across South Australia as a centrepiece election pitch to ease pressure on clogged hospitals.
Aged care falls under the Federal Government’s remit, but with 3,000 older people waiting in hospitals for an aged care bed, State Governments are increasingly looking at options to reduce the numbers.
The West Australian Government has launched its own $100 million low-interest loan scheme aimed at accelerating the supply of aged care beds in the state.
As of this weekend (7-8 February), there were 363 South Australians medically fit for discharge but stuck in hospitals or a transit hotel waiting for a residential aged care bed, compared with just 60 in 2022 when Peter Malinauskas took Labor to power in South Australia.
“We need providers to build more beds and that’s why we’re incentivising them with a new $250m no-interest loan scheme to create up to 650 extra aged care beds for South Australians,” said State Health Minister Chris Picton.
Operators back need for investment
Michelle Church, St Basil’s Homes (SA) Chief Executive, said investment is badly needed in residential aged care.
“Providers are willing and capable of building across South Australia but attracting investment has been difficult with the sector losing billions of dollars over recent years,” Michelle said.
“This commitment provides some certainty for those willing to invest, to move from planning to delivery and to commence construction of much-needed beds.”
Ageing Australia Chief Executive Officer Tom Symondson praised the State Health Minister and Premier “for putting their money where their mouths are”.
“This is exactly the action we need to see from our state and territory leaders if we are to get beds built to meet the needs of older people across the nation,” said Tom.
The announcement, provided exclusively to the Adelaide Advertiser, provides no time schedule or details of how the no-interest loan scheme would work.
