Labor promises no-interest loans to boost SA aged care

With just over five weeks until South Australians head to the polls, the current Labor government has made a significant pledge to boost the state's aged care sector.

If re-elected on March 21 the Labor government has promised to fund a new $250m no-interest loan scheme, incentivising providers to create 650 additional aged care places and ease hospital congestion.

The number of patients in SA hospitals waiting for an aged care bed has exploded in recent years. The Labor government reports a 385 per cent increase in patients in this cohort between October 2022 and August 2025.

Premier Peter Malinauskas said he wants to “lead a government that sees a problem and then steps up to the plate and does something about it.”

“Every day there are hundreds of South Australians – and thousands across the country – stuck like this because they can’t get a federal government aged care bed,” he said.

“Although it’s frustrating the state government has to step in – we are not a government which sits back and observes a problem; we choose to act.

The government’s aged care plan also includes the construction of a new Women’s and Children’s hospital adjacent to the Royal Adelaide Hospital, after which the old site will be transformed into a fit for purpose health and aged care precinct, which Premier Malinauskas said will provide 600 aged care beds.

The College Grove Aged Care Facility in Walkerville will also be revived in partnership with Amplar Health, adding another 70 aged care beds.

Ageing Australia chief Tom Symondson said examples of states and territories taking the aged care crisis into their own hands prove “ageing is everyone’s business.”

“The South Australian Government’s commitments prove that aged care isn’t just a responsibility for the federal government, but all governments,” Mr Symondson said.

“This commitment by the South Australian government should serve as an example of what other states and territories can do to help older people now and in the future.”

“Western Australia is another example of how states can do their bit. The Cook government has recently committed to a $100 million Low Interest Loan Scheme to support providers to build beds for older people with lower means. In addition, Victorian government has a long history of providing aged care services, particularly for those older people with higher needs.”

Mr Symondson said that the federal government added about 800 aged care beds across the country “when we should be building 10,000 a year.”

“Australia’s population is rapidly ageing. Over the next 40 years those aged over 85 will triple, and we need to be ready,” he warned.

“Investment in aged care now improves the lives of older Australians, takes pressure off hospitals, and helps prepare for the future.”

Announced in early January, the WA government's $100 million Aged Care Low Interest Loan Scheme aims to stimulate growth within the aged care sector, funding the construction, upgrade, or refurbishment of aged care facilities across the state.

Aged Care and Seniors Minister Simone McGurk said “all Western Australians deserve access to aged care services, when they need it.”

“The launch of the Loan Scheme builds on the Cook Government’s commitment to improving health care and support options for older Western Australians,” she said.

“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.

“By increasing availability of residential aged care, we will ensure Western Australians can access appropriate aged care support not only in our urban centres but also in regional and remote areas.”

---

Applications for WA's Aged Care Low Interest Loan Scheme close at midnight February 13, 2026.