The shortage of aged care beds has been an increasing issue in Australia for some time. Now, the South Australian government has made it a centrepiece of its state election campaign. This is despite declaring that aged care bed supply is primarily a Federal government responsibility.

A $250 million no-interest loan will be offered to turbocharge the construction of 650 new aged care places across South Australia.

The policy forms part of a broader push to deliver 1,300 new aged care beds statewide. It also includes plans to work in collaboration with the private sector. This would see the Women’s and Children’s Hospital in North Adelaide transformed into an aged care precinct with more than 600 beds.

So, what is the issue — and what does the policy include?

What is the issue?

At last recording there were 363 South Australians in hospital who were considered ready for medical discharge but were waiting on an aged care bed. This compares to just 60 in 2022.

Data released in October showed that 59 patients have spent more than 100 days in Adelaide hospitals. This is despite being fit for discharge. That makes up a total of 10, 925 days.

This has placed increasing pressure on the state’s hospital system. It has also contributed to an increase in ambulance ramping in the state. This has been an issue that the state government has been under pressure to fix.

According to Premier Peter Malinauskas, aged care beds are a federal responsibility. However, he says his government feels it has no choice but to act.

“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,”

“We desperately need more aged care beds and that’s why we are stepping in where the federal system hasn’t delivered.”

He added that he does not want to lead a government that points the finger at others. Rather, he wants to lead a government that ‘sees a problem and steps up to the plate and does something about it’.

What does the policy hope to achieve?

The government hopes the new no-interest loan scheme will incentivise construction of new aged care homes in Australia.

“We’ve been working with aged care providers across the state … who’ve been telling us that the key barrier is getting the capital fund that they need to enable these construction to start,” said South Australian health minister Chris Picton.

Federal Aged Care Minister Mark Butler recently told Adelaide radio that demand for aged care places is accelerating. He said Australia would need a new aged care facility built every three days for the next 20 years to keep up.

With demand for aged care places continuing to rise, the sector is expected to require a significantly larger workforce in the years ahead. New facilities, expanded services and an ageing population all point to strong and sustained employment opportunities across residential aged care.

Are you considering a career change or looking to enter a sector with long-term job security?  Aged care offers a wide range of roles and pathways.

If you’re thinking about taking the next step, Aged Care Resumes can help. We offer professional resume writing and cover letter services tailored specifically to the aged care sector. This helps you present your skills and experience clearly and confidently to employers.

Article References

Crouch, B (8 February 2026) ‘New $250m loan scheme to create 650 aged care places in SA’, The Advertiser, accessed 9 February 2026.

Lim, J, Merritt, R & Bermingham, K (8 February 2026) ‘SA Liberals promise new stamp duty concessions, Labor tackles aged care bed backlog’, ABC News, accessed 9 February 2026.