How are the loans going to be administered?
The loans will be administered in a similar way to a loan with a bank or financial institution; however providers will enter a Loan Agreement with the Department of Health and Ageing. The loan will span a period of 12 years. In the first two years, providers will repay only the CPI on the amount drawn down, giving an opportunity to generate revenue from the new places before having to meet the principal repayments. Two years after the loan commences, repayment of the principal will be required at 10% of the original loan amount plus interest (CPI) per year. These repayments will be spread evenly over the year. Over the life of the loan, providers will receive statements from the Department of Health and Ageing summarising the amount borrowed, the CPI calculations (and any changes to this amount), the required repayments and the due date(s).
