RSM Australia

Background to capital grants for residential aged care providers

We have analysed the capital grants approved by the government through the 2013, 2014 and 2015 ACARs. The following analysis is provided to assist those providers who are considering making an application for a capital grant in the 2016 ACAR.

Who receives the grants?

Table 1 presents the total capital grants approved. Overwhelmingly grants go to the not for profit sector.

There is a clear focus on community based organisations in all regions, (across major cities, inner regional and outer regional locations).

Table 1

Total Capital Grant
Organisation type v Location ('000)

  Major cities of Aust Inner regional Aust Outer regional Aust Remote Aust Very remote Aust Grand total
Charitable 23,205 4,100 6,601     33,906
Community based 44,497 39,865 51,528 3,100   138,990
Local government   2,760 1,999     4,759
Private incorporated body       741   741
Religious 12,350   6,500 4,661 19,093 42,604
Grand total 80,052 46,725 66,628 8,502 19,093 221,000

In the following table we show the relative value (percentage) of grants buy provider type and location. 
 

Table 2

Capital Grant as a % of Total Grant by Location
Organisation type vS Location

  Major cities of Aust Inner regional Aust Outer regional Aust Remote Aust Very remote Aust
Charitable 28.99% 8.77% 9.91% 0.00% 0.00%
Community based 55.59% 85.32% 77.34% 36.46% 0.00%
Local government 0.00% 5.91% 3.00% 0.00% 0.00%
Private incorporated body 0.00% 0.00% 0.00% 8.72% 0.00%
Religious 15.43% 0.00% 9.76% 54.82% 100.00%

In Table 3 we look at the number of grants by ownership and location. Again it is the community based organisations that are the principal recipients of grants. In the last three ACAR.

Table 3

Capital Grant Applications approved
Organisation type v Location

  Major cities of Aust Inner regional Aust Outer regional Aust Remote Aust Very remote Aust Grand total
Charitable 3 2 3     8
Community based 9 16 18 1   44
Local government   1 1     2
Private incorporated body       1   1
Religious 2   3 1 1 7
Grand total 14 19 25 3 1 62

When looking at the recipients of grants rather than the value and bearing in mind that the greater proportion of facilities are in the major cities and inner regional areas  it is evident that  the focus of the grants is to community based regional operators.

On what basis are grants provided?

As part of the capital grant application process, the government identifies key issues and special needs within each region. The following table shows the key issues for which grants have been awarded in the recent past.

Table 4

Key Issue and Special Needs Focus

  ATSI CALD FSD VET LGBTI Dementia Terminal illness

Charitable

             
Inner regional Australia   1 1 1   2 1
Major cities of Australia 1 1 3 1 1 3 3
Outer regional Australia     2     1  

Community Based

             
Inner regional Australia 4   12 2   14 11
Major cities of Australia   7 3 2   5 3
Outer regional Australia 7 1 14 2 2 14 10
Remote Australia     1     1  

Local Government

             
Inner regional Australia     1     1  
Outer regional Australia              
Private incorporated body              
Remote Australia              

Religious

             
Major cities of Australia     2   1 1  
Outer regional Australia     2     3  
Remote Australia     1       1
Very remote Australia 1   1     1 1
Grant total              

Are grants for new/extension facilities?

The total of issues is greater than the number of grants as some grants applicants meet multiple criteria.

When we compared grant recipients to those who had applied for additional places we found that only 27 of the Interestingly, of the 662 approved applications for capital grants, only 27 corresponding applications had places allocated to them.

Table 5

Applications for Places approved
Organisation type v Location

  Major cities of Aust Inner regional Aust Outer regional Aust Remote Aust Very Remote Aust Grand total
Charitable 2 2 2     6
Community based 3 6 8 1   18
Local government     1     1
Private incorporated Body            
Religious 2         2
Grand total 7 8 11 1   27

The value of grants

We were interested to see if there is any 'normal' basis to approved grants. For this purpose we looked at recipients who had also been awarded places. The following charts shows the value of grants awarded on a per place basis for this sub set.

While there are outliers in all years the majority of grants are in the range of $5,000 - $50,000 per place.