Western Australia commits $100 million to aged care infrastructure

The Western Australian Government has announced a $100 million low interest loan scheme designed to support residential aged care providers to develop new facilities, expand existing services and refurbish ageing infrastructure. The initiative aims to reduce barriers to capital investment, improve long-term sustainability across the sector and help address the growing shortfall in residential aged care beds.

The Western Australian Government has announced a $100 million Low Interest Loan Scheme aimed at supporting the development, expansion and refurbishment of residential aged care infrastructure across the state.

Delivered by the Cook Government, the scheme will offer loans at below-market interest rates, reducing barriers to capital investment and helping providers undertake projects that may otherwise be financially unviable.

The initiative comes at a critical time for the aged care sector, which has faced sustained financial pressure driven by rising construction costs, workforce shortages and ongoing operating losses.

Supporting long-term sustainability

Access to affordable finance remains one of the biggest challenges for aged care providers looking to invest in new facilities or upgrade ageing infrastructure. High interest rates and tighter lending conditions have constrained development, particularly for smaller and regional providers.

By lowering the cost of borrowing, the WA Government’s loan scheme is designed to improve the feasibility of capital projects and support the long-term sustainability of residential aged care services.

Investment in modern, fit-for-purpose facilities is widely seen as essential to improving care outcomes, supporting staff, and reducing flow-on pressure to hospitals when older people are unable to access appropriate residential care.

A widening supply gap

The announcement also highlights a growing national shortfall in residential aged care beds. Construction activity has failed to keep pace with demand, with only a small number of new beds delivered in recent years.

In 2025, approximately 800 new residential aged care beds were built nationally, well below the estimated requirement of around 10,000 new beds per year over the next decade to meet projected demand.

Without increased investment, the gap between supply and demand is expected to widen, particularly in regional and outer metropolitan areas.

State governments stepping in

While aged care is primarily funded and regulated by the Commonwealth, state and territory governments play an important role in planning, infrastructure and health system integration. Initiatives such as low-interest loan schemes demonstrate how states can contribute to addressing structural challenges within the sector.

The WA model provides a practical example of how governments can use targeted financial mechanisms to encourage investment without relying solely on direct grants or subsidies.

Election commitment delivered

The $100 million scheme fulfils an election commitment made by the Cook Government and is expected to support a range of residential aged care projects across Western Australia.

Premier Roger Cook and Health Minister Simone McGurk have been acknowledged for progressing the commitment into a functioning program designed to unlock development activity and improve sector confidence.

As aged care providers continue to navigate financial and operational pressures, targeted infrastructure investment is increasingly viewed as a necessary part of ensuring the system can meet future demand and deliver safe, high-quality care.