As demand for aged care rises, BOQ Specialist delivers industry knowledge and financial solutions to help operators thrive
Over the next 40 years, Australia’s population aged 85 and older is projected to triple. As of June 2024, there were 581,500 people in this age bracket, around 12.4% of the over-65 population. While they represent a smaller share of the overall senior community, Australians aged 85+ drive a disproportionately large demand for aged care accommodation, reflecting their greater need for specialised housing and support services compared with younger cohorts.
At the same time, the broader retirement market is evolving rapidly. Today’s retirees are seeking more than just housing security, with growing expectations for lifestyle, community and choice. Together, these forces represent one of the most significant demographic shifts in Australia’s history and place both aged care and retirement living firmly at the centre of the nation’s future.
“Whether funding liquidity requirements, refurbishment, development or core debt finance, BOQ Specialist offers products and expertise designed to support operators throughout their journey” – Karen Carter, Bank of Queensland
For business owners, this presents both tremendous opportunity and immense pressure.
Operators in this sector must balance rapid growth and rising demand with financial sustainability, regulatory compliance and the delivery of high-quality services and care. The stakes are high, and so is the need for the right support.
“Brokers have an opportunity to unlock value for their clients through BOQ Specialist,” says Karen Carter, general manager commercial third party, Bank of Queensland. “Our specialised bankers combine deep industry knowledge with tailored financial solutions to support growth and long-term success.”
Challenges for business owners
Running an aged care or retirement business has never been more challenging. The sector continues to navigate the effects of ongoing government reforms, with providers adjusting to new funding models, stricter quality standards and mandated staffing requirements. Compliance demands are significant and require constant investment in training, systems and governance.
At the same time, workforce shortages remain one of the greatest obstacles. With demand for aged care workers far outstripping supply, operators are under pressure to recruit, train and retain skilled staff in an increasingly competitive market. Meeting new minimum staffing requirements only adds to the financial and operational strain.
The challenge does not end with staffing. Rising operational expenses, from the cost of utilities and food to insurance and medical supplies, are tightening margins. Many facilities are also ageing and require costly upgrades or full redevelopment to meet modern expectations for comfort, accessibility and design. Securing capital for such projects can be difficult, particularly when lenders are unfamiliar with the complexities of the industry.
“BOQ Specialist supports operators and stays across industry challenges,” Carter says. “Whether funding liquidity requirements, refurbishment, development or core debt finance, BOQ Specialist offers products and expertise designed to support operators throughout their journey.”
Opportunities in a changing market
Despite the challenges, the outlook for aged care and retirement living remains strong, with significant opportunities for growth.
Carter notes that today’s retirees are seeking more than just basic care. “They want lifestyle, community and choice.” This demand is driving the rise of retirement villages and communities that integrate wellness, recreation and social connection alongside essential support services. “For business owners, this creates the chance to design and operate offerings that truly meet evolving expectations,” Carter says.
Technology is also reshaping the sector. Telehealth, digital health records and smart monitoring systems are improving care quality while boosting operational efficiency. As Carter explains, “Business owners who adopt these innovations can streamline operations, reduce costs and deliver a higher standard of care, giving them a competitive edge.”
Property development presents another avenue for long-term growth. There is increasing demand for purpose-built facilities, and retirement living and aged care projects are attracting investors. Carter highlights a growing trend of providers, such as Aveo, Lendlease and Bolton Clarke, that combine retirement living and aged care under one brand to allow residents to transition seamlessly as their needs change.
With structuring complexities now the norm across land ownership, investor equity and income models, BOQ Specialist provides trusted advisory services to ensure debt is structured to suit clients’ needs. In particular, BOQ Specialist supports aged care and retirement operators with tailored funding solutions, including development finance and core debt for land lease communities.
Role of specialist brokers in the sector
Brokers can be instrumental in connecting aged care and retirement operators with the right financial solutions. In a sector where lending requirements can be highly specialised, brokers can act as trusted advisers, guiding clients through complex funding needs.
“With BOQ Specialist’s personal approach and industry know-how, brokers can feel confident their clients are well looked after” – Karen Carter, Bank of Queensland
By working with BOQ Specialist, brokers can give their clients access to tailored banking expertise and industry-specific finance options. Whether it’s structuring large-scale property loans or supporting cash flow through flexible facilities, BOQ Specialist collaborates closely with brokers to ensure clients have the right support.
“For brokers, this is a chance to build stronger client relationships and play a bigger role in a fast-growing sector,” Carter says. “With BOQ Specialist’s personal approach and industry know-how, brokers can feel confident their clients are well looked after.”
Building a sustainable future together
The aged care and retirement industry is more than just a market trend; it is a cornerstone of Australia’s future. Business owners in this sector carry the responsibility of caring for older Australians, while brokers have the chance to support them in securing the financial tools they need to thrive.
BOQ Specialist understands the retirement industry intimately and is particularly adept at development project finance. It has the experience and expertise to structure deals that acknowledge the unique differences between retirement projects and standard development transactions.
By working together, operators, brokers and BOQ Specialist can ensure that the aged care and retirement sector not only meets the demands of tomorrow but also creates lasting communities where older Australians can thrive.
