The South Australian Government is supporting investment in residential aged care through the $250 million Aged Care No Interest Loan Scheme (Loan Scheme), which will provide no-interest loans to help increase the supply of aged care beds across South Australia. The Loan Scheme aims to support the development, refurbishment and expansion of residential aged care facilities and improve access to care for older South Australians.
Registered residential aged care providers and eligible special purpose vehicles (SPVs) may apply for loans to fund eligible aged care infrastructure projects that meet the objectives of the Loan Scheme.
Loan amounts of up to $50 million per eligible applicant are available, with loan terms of up to 15 years, including repayment-free periods during construction. Providers may apply for multiple projects, up to a total loan value of $50 million.
The Loan Scheme will prioritise projects that:
- increase access to beds for fully supported residents,
- increase the supply of memory support beds,
- address areas of residential aged care under-supply, including the support of patients with complex care needs and areas with limited service availability, to improve access and equity, and
- can be fast-tracked with new beds made operational quickly.
Applications will open on 17 August 2026 and close on 16 October 2026.
The application form will be published shortly. Providers can register to receive an update when applications open.
Applicants will need to provide supporting documentation including project plans, financial information, project budgets, cash flow forecasts, evidence of additional bed capacity, and details of any other government funding received or sought.
Further information
Enquiries can be directed to safaindustryassistance@sa.gov.au.
Frequently Asked Questions
Objectives
No, but the competitive assessment process will favour projects from providers with an ambition to build new beds for supported residents and memory support beds.
Delays will be considered on a case-by-case basis. Where there are legitimate reasons for delays, contract variations may be negotiated with SAFA, subject to approval.
Loan recipients must be prepared to enter into long-term arrangements, for the term of the loan, that support government priorities. This may include making beds available that meet unmet demand leading to delayed discharge from hospital (e.g. dementia support and high care needs). While there are no minimum requirements, applications will be expected to outline how many beds an applicant is prepared to make available for government priorities, with a higher share being looked upon more favourably as part of the assessment process.
How the loan may be used
Yes, as long as the project will be constructed in South Australia.
Yes, providers can apply for multiple projects with a combined loan value of up to a total of $50 million.
No, projects cannot involve refinancing of existing debt.
Ongoing business as usual activities including salaries and wages for new or existing staff are ineligible project expenditure, except where project managers are wholly and directly engaged in the project for a defined period of time.
No, unless Commonwealth funding is being used as part of the applicant’s co-contribution. The project will need to meet the approvals required by any South Australian government authority.
Loan features
Yes, applicants are expected to contribute equity, commercial finance, Commonwealth funding and/or other capital sources as a co-contribution to the project.
Where the borrower has an existing arrangement with its financiers or funders (e.g. Commonwealth Government), the Treasurer may require that the parties enter into an intercreditor or alternative agreement which regulates the rights, priorities and relationship between the Treasurer and the financier, particularly where the borrower defaults or becomes insolvent.
What to submit
As part of the application, a mandatory template is required to be completed to supply all requested information. The template will be available for download on the Loan Scheme landing page shortly.
Reporting requirements
Yes, loan recipients will be required to provide periodic progress updates, a final acquittal and baseline report confirming current bed numbers and ratio of fully supported residents. Ongoing annual financial reporting will also be a requirement for the duration of the loan.
