Applications are now open for the Western Australian Government’s $100 million Low-Interest Loan Scheme, a major initiative aimed at accelerating growth and investment in the residential aged care sector.
The scheme, a 2025 State election commitment of the Cook Government, offers competitive concessional loans at interest rates below those typically available through commercial lending. Eligible aged care providers can apply for loans of up to $20 million to support the construction of new residential aged care beds, as well as the upgrade or refurbishment of existing facilities across metropolitan, regional and remote Western Australia.
Announced by Minister for Aged Care and Seniors Simone McGurk, the scheme is designed to improve access to affordable finance, accelerate capital investment and support the delivery of modern, purpose-built aged care facilities. In doing so, it is expected to ease pressure on the health system and improve outcomes for older Western Australians.
“Partnering with aged care providers through this Loan Scheme ensures older Western Australians will have access to the high-quality residential aged care they deserve.”
Western Australia continues to experience strong population growth and a rapidly ageing demographic, driving sustained demand for residential aged care. Currently, the State has just 65.5 residential aged care places per 1,000 people aged 70 and over, highlighting ongoing capacity challenges.
The sector is also facing significant financial pressures, including rising construction costs. Western Australia has the highest construction costs in the country, with the cost of building a new residential aged care bed estimated at around $750,000.
By reducing the cost of capital, the Low-Interest Loan Scheme aims to give providers greater confidence to invest in new and upgraded facilities, while supporting the delivery of more concessional residential aged care beds for older people with limited financial means.
The initiative is expected to drive sustainable growth in the aged care sector, support job creation across construction and care services, and deliver broader economic and social benefits as the State’s population continues to age.
Guidelines outlining eligibility criteria and application requirements are now available on the Department of Energy and Economic Diversification’s website, with applications officially open to eligible aged care providers.
