Juniper welcomes WA Labor’s $100 million Concessional Loan election promise

Juniper welcomes today’s election promise by the WA Labor party of a $100 million Concessional Loan arrangement for aged care providers to build new or refurbish existing residential aged care homes that meet the needs of concessional customers or within areas of need.

“Today’s announcement is excellent news for the Western Australian community, with a loan arrangement providing the underpinning financials to create more accommodation options and increase supply that is so sorely needed by older Western Australians,” Juniper CEO Russell Bricknell said.

“WA Labor’s commitment today recognises the vulnerability many older Western Australians are facing with the current housing and cost of living crisis, coupled with demand for residential aged care beds outstripping supply.

“We believe every older Australian deserves access to quality care and accommodation, no matter their financial means. By targeting concessional beds with today’s promise, it means older Western Australians who qualify as concessional customers with low income and few assets will not be left behind.

“Across Western Australia, right now, demand for residential aged care is extremely high with very few vacancies. During December 2024 across the greater Perth metro region, Juniper had eight vacant beds out of a total 850 beds. According to Ernst & Young modelling for the WA Department of Health, by 2029 the gap in Perth metropolitan area is estimated to be between 1400 and 2800 beds, requiring 15 to 30 new residential aged care homes.

“With current residential facilities across Australia running at a loss, barely breaking even and certainly not near the 10 percent return required to justify a new investment, providers have been in a position where they simply can’t justify building new facilities. This is especially true in Western Australia with construction costs the highest in the country, with the cost of building at around $500,000 per bed.”

“By increasing supply of new beds, this will aid in taking some of the pressure off Western Australia’s hospitals where older people are in limbo due to the lack of beds in residential aged care.

“We call on bipartisan support on this important commitment to ensure that in the future that we can care for older Western Australians.”