Capital Funding

Page last updated: 30 June 2016

Funding for construction, maintenance and upgrading of residential aged care services

Under the Australian Government funding framework for residential aged care, it is the responsibility of the approved aged care provider to fund the construction, maintenance and upgrade of aged care facilities through operating revenues, or alternatively through government subsidies and resident charges.  Where providers are unable to meet the whole cost of essential capital works, limited capital grant funding is available from the Rural, Regional and Other Special Needs Building Fund.

Capital grants from the Rural, Regional and Other Special Needs Building Fund

The aim of the Rural, Regional and Other Special Needs Building Fund is to facilitate equitable access to residential aged care where access is impeded because of:

  • geographic location
  • inadequate supply of residential care, including for people from special needs groups or concessional, supported, assisted or low-means residents (as defined in the Aged Care Act 1997 and Aged Care Principles 1997)
  • lack of access to sufficient non-grant funding by the approved aged care provider to undertake essential capital works.

Previously allocated capital grants

Read the details of previously allocated capital grants:

Eligibility and how to apply

Capital grant funding is allocated on a competitive basis through the Aged Care Approvals Round (ACAR).  Information about how to apply and the eligibility requirements for capital grant funding through the 2014 ACAR is detailed in the 2014 Aged Care Approvals Round Essential Guide, which includes the Capital Grant Program Guidelines.  Read more in the Essential Guide.

Repayment of capital grants

A condition of any grant is that the grant recipient continues to provide residential aged care, funded under the Act, in the facility for which the grant was provided.

If the grant recipient stops providing residential aged care in that facility, or sells, transfers ownership or effective control, or demolishes that facility, the Government may seek repayment of all or part of the grant.  

Grant recipients should advise the Department in writing as early as possible if they intend to stop providing care, or to transfer ownership or effective control, or to sell, demolish or otherwise dispose of a facility for which the grant was provided.

Grant recipients will be given an opportunity to make a submission before a decision on the amount of any repayment is made.  Each case is considered on its merits.

Further information about the repayment of capital grant funding is set out in Repayment of Aged Care Capital Funding – The Guidelines.

Zero Real Interest Loans

The Zero Real Interest Loans (ZRIL) programme provided low-cost loans to residential aged care providers to assist with the construction or extension of residential aged care facilities in areas of high need.

No further loans will be made.

Results of Zero Real Interest Loans funding rounds

$608 million in loans have been offered to providers around Australia.

State Loan Associated residential places
ACT $17,000,000 41
NSW $164,941,000 1,009
QLD $102,902,176 974
SA $54,346,975 395
TAS $59,584,825 361
VIC $91,669,000 892
WA $118,034,565 857
Total 608,478,541 4,529