The Australian Government has announced an additional $115 million investment to rapidly expand residential aged care capacity in four areas experiencing high demand.
The funding will be delivered through the Aged Care Capital Assistance Program (ACCAP) and will target Adelaide, Illawarra, Perth and the Hunter, to bring new beds online within two years.
An Expression of Interest (EOI) process will invite aged care providers to submit proposals to build and open new residential beds that align with the National Aged Care Design Principles. The move is intended to ease hospital discharge pressures and improve access to care closer to home.
The latest allocation lifts total funding through the program to more than $1 billion since 2022, with further ACCAP rounds expected later this year to support projects in regional areas.
The EOI process will be delivered in two phases. The first round, covering Adelaide and the Illawarra, will open on Friday 13 March, followed by a second round focused on Perth and the Hunter. Providers will have six weeks from the opening date to submit proposals. EOI documents, including instructions on how to participate, will be available on GrantConnect.
Mark Butler, Minister for Health, Disability and Ageing, said the funding formed part of the government’s broader effort to increase aged care capacity.
“The Albanese Government is making record investments to increase the supply of beds and capacity of our aged care systems to ensure every older Australian gets the dignity of care and support they deserve,” he said.
Industry body Ageing Australia welcomed the announcement but warned significantly more capacity would be needed to meet demand.
Chief executive Tom Symondson said the additional funding was a positive step but only part of the solution.
“We welcome any commitment that can help us build more beds quickly or bring beds back online…Australia’s population is rapidly ageing. Over the next 40 years those aged over 85 will triple, and we need to be ready.”
Mr Symondson added that the sector was already falling short of the number of new beds required each year.
“We should be building about 10,000 beds a year, but last year we built only about 400,” he said.
“Within the next few years, we will find ourselves in a situation where we literally cannot meet demand. Initiatives that aim to bring beds online in the short term will be critical to tackling this issue.”
The announcement follows recent commitments by state governments in South Australia and Western Australia to invest in additional aged care beds to help relieve pressure on hospitals.
