WA bets on finance to fix aged care supply
Under the program, eligible residential aged care providers can access below-market interest loans with terms of up to 15 years.
Western Australia has moved to unlock a new capital pathway for aged care providers, launching a $100 million low-interest loan scheme aimed at accelerating the delivery of new aged care beds.
While aged care funding and bed approvals sit primarily with the Federal Government, the Cook Government has stepped in with a state-based financing tool – an unusual move that reflects the growing pressure on WA’s hospitals and frustration over the pace of Commonwealth-funded supply (see headline above).
The Aged Care Low Interest Loan Scheme – an election commitment first flagged ahead of the March 2025 State election – is now live, with applications opening this week for concessional loans of up to $20 million per provider to support the construction, expansion or refurbishment of aged care facilities across the state.
How the scheme works
Under the program, eligible residential aged care providers can access below-market interest loans with terms of up to 15 years, supporting projects that would otherwise struggle to proceed under current construction and funding conditions.
Applications opened at 11am AWST on Wednesday 7 January 2026 and will close at 11:59pm AWST on Friday 13 February 2026, to be lodged via the SmartyGrants portal.
The assessment process will be competitive, with projects evaluated on:
- their ability to increase the net supply of concessional or supported beds
- readiness to commence and deliver outcomes within 48 months
- financial viability, governance and delivery capability
- demonstrated need for concessional finance to unlock capacity that would not otherwise be built.
The Government expects to shortlist projects in March 2026, with final approvals announced in April or May and loan agreements executed by May 2026.
A response to a tightening system
The scheme opens as the hospital and aged care system continues to struggle in Western Australia.
In 2025, more than 200 older people a day were regularly waiting in WA hospitals for an aged care placement, contributing to record ambulance ramping.
July alone recorded more than 7,000 hours of ramping, prompting Premier Roger Cook to publicly call on the Commonwealth to “do better on aged care”.
The State Government has stated that WA will need around 2,800 additional aged care beds within five years to keep pace with demand – far beyond what current development pipelines are delivering.
Construction costs also remain among the highest in the country, with sector estimates putting new build costs at around $500,000 per bed.
Bridging the capital gap
Aged Care and Seniors Minister Simone McGurk (pictured top) said the loan scheme was designed to bridge the widening gap between demand and delivery.
“All Western Australians deserve access to aged care services when they need them,” she said.
The scheme will sit alongside other WA policies, including the Time to Think program, which has created 87 short-term aged care places to move older patients out of acute beds while longer-term arrangements are made.
But even with this funding unlocked, new beds will not appear overnight.
Projects funded through the scheme must reach operational readiness within four years – underlining that the initiative is a medium-term solution and not an immediate fix.
Hall & Prior CEO Graeme Prior had also commended the Government on the scheme in September 2025 – but warned that $100 million a year for the next decade would be required to meet expected demand in the state.
With the scheme originally forecast to deliver just 500 new beds, Western Australia’s bed woes are likely to persist.
You can find out more about the Aged Care Low Interest Loan Scheme on the WA Department of Energy and Economic Diversification’s website here.
