The Australian government offers various incentives and funding programs to support the construction of new aged care facilities. These programs aim to improve the quality and accessibility of aged care services, particularly in rural and remote areas.

National Housing Finance and Investment Corporation (NHFIC)

The NHFIC offers low-cost loans and grants to support the construction of social and affordable housing, including aged care facilities. This can help reduce the financial burden on aged care providers.

State and Territory Programs

Various states and territories have their own funding programs and incentives for aged care construction. For example:

• New South Wales: The NSW Government offers grants and low-interest loans for aged care projects through programs like the Social and Affordable Housing Fund (SAHF).
• Victoria: The Victorian Government provides funding through the Regional Health Infrastructure Fund (RHIF), which can be used for aged care facilities in regional areas.

Tax Incentives

• Capital Works Deduction: Allows for the deduction of construction costs over a period of time.
• Instant Asset Write-Off: Enables businesses to immediately deduct the cost of eligible assets, which can include construction equipment and materials.

Grants and Subsidies

Various grants and subsidies are available to support aged care providers, including:

• Commonwealth Home Support Programme (CHSP): Provides funding for services that help older Australians remain in their homes, which can indirectly support the construction of facilities that offer these services.
• Residential Aged Care Subsidies: Ongoing funding to support the operation of residential aged care facilities, which can help offset construction costs.

National Stronger Regions Fund (NSRF)

The NSRF was a previous funding program that provided grants for infrastructure projects in disadvantaged regions. While the program has now closed, some aged care facilities may have received funding through this initiative.

Regional Development Australia (RDA) Program

RDAs are regionally-based organizations that work with local communities to identify and address development needs. They can provide advice and support to aged care providers seeking funding for new facilities in their regions.

Aged Care Workforce Retention Grant Opportunity

The Aged Care Workforce Retention Grant Opportunity provides funding to aged care providers to support the retention of their workforce 2. This grant can be used to support the construction of new aged care facilities, particularly in areas with workforce shortages.

Dementia and Aged Care Services Fund

The Dementia and Aged Care Services Fund provides funding to support the development of innovative and evidence-based services for people with dementia and older Australians 2. This fund can be used to support the construction of new aged care facilities that specialize in dementia care.

Public-Private Partnerships (PPPs)

Some aged care projects are developed through PPPs, where the government collaborates with private sector partners to fund and build new facilities. This can provide additional financial and operational support.

Local Government Initiatives

Local councils may offer incentives such as reduced development application fees, expedited approval processes, or land grants to encourage the construction of aged care facilities in their communities.

How to Apply

To access these incentives and funding programs, aged care providers typically need to submit detailed applications that demonstrate the need for the facility, the benefits to the community, and the financial viability of the project. It's advisable to consult with a financial advisor or a consultant specializing in aged care to navigate the application process effectively.