Two months later, where is the consultation on reviving aged care?

Consultations promised after the Health, Disability and Ageing Minister's $3 billion bed boost promised at the National Press Club have not yet eventuated.

In the 22 April address, Health, Disability and Ageing Minister Mark Butler announced Aged Care Minister Sam Rae would be leading consultations with the aged care sector on the recommendations arising from the Residential Aged Care Accommodation Pricing Review.

He outlined the Government's initial response to the Review, including $3 billion to build more aged care beds and deliver more home care.

The $3 billion includes:

• $1 billion for the change in the treatment of personal care services through the Support at Home program,
• $1.1 billion to  provide a $5 increase per resident per day to the maximum accommodation supplement along with new tiering and $20 per resident per day for facilities that have greater than 60% supported residents,
• $348.4 million over four years for new targeted capital subsidies payable to residential care providers funding for the relevant projects and,
• $224.3 million over four years for dementia care supports, including the expansion of the Hospital to Aged Care Dementia Support Program.

Further capital assistance still under discussion

In this address, the Minister said recommendations about capital assistance to aged care providers planning to build new homes would be the subject of the discussions with Minister Rae.

Yet nearly two months later, the sector has heard nothing on the topic, although the Department of Health, Disability and Ageing has confirmed with The Weekly SOURCE Minister Rae will be leading consultations.

Key recommendations awaiting a Government response are interest-free loans - already state government commitments in Western Australia and South Australia - and expansion of the Aged Care Capital Assistance Program.

(The Western Australian Government was due to announce recipients of the loans in May, yet no decisions have been announced at the time of writing. South Australia's scheme was an election pledge and was funded in their 2026-27 Budget, but details of the scheme have yet to be released.)

"Early discussions"

Tom Symondson, CEO Ageing Australia, told The Weekly SOURCE, the peak body for aged care providers, has been engaged in "early discussions" on the design of an interest-free loan scheme.

“The Accommodation Review’s recommendation to establish a zero interest loan scheme reflects a long standing position of Ageing Australia", he said.

"The scheme needs to target those areas and service types that have never been able to access finance privately such as those in remote areas or in those metro and regional communities where the ability to pay RADs is limited."

However, Tom said “zero interest loans are only one part of the picture" with provider sustainability also having to be addressed.

"While providers continue to lose money, as the majority do, access to capital is only a secondary issue. No provider can afford to build new beds while it loses money on every existing one. The announcement of additional funding for supported residents in the Federal Budget was welcome, but only partly addresses the problem," Tom said.

"Providers are ready to get started, but they need to be investable and they need support to get building."

Address staff housing, too

Alex Lynch, Director Aged and Community Care Policy, Catholic Health Australia, told The Weekly SOURCE, Catholic providers have been working with the Government and Department on the Accommodation Review response since Minister Butler’s National Press Club speech.

"We are focused on working towards a nationally consistent no-interest loan scheme for the development of new aged care beds," he said.

"Another important issue is the expansion of the Aged Care Capital Assistance Program and improving its focus on key worker housing. These components are critical to the expansion of new bed construction."

Watch this space then.