Anglican Retirement Villages' CEO Ken Barber has expressed concerns for the future of the aged care sector after ARV decided not to apply for beds in the latest round of Federal Government nursing home licences.

This decision was made independently of many other large not-for-profit aged care organisations who also decided not to apply this year for financial reasons.

"We will have to reconsider expansion in the short term into residential care until there is greater commitment from the Federal Government to fund the real cost of caring for our elderly."

While the costs of running residential care facilities (which includes hostels and nursing homes) increases an average at least four per cent per annum, funding for licences from Government " which is essential for operating residential care beds " has only increased by approximately two per cent per annum over many years now.

"Our first and foremost concern is to ensure we can continue to provide first class care for our existing residents," Mr Barber says. "To this end, it would be poor financial stewardship to take on new Government licenses that may damage the organisation’s financial wellbeing."

However Mr Barber insists there will be no delays to ARV's short-term projects.

This month Brian King Gardens, a $55 million upgrade for 238 existing residential care residents, will be opened by the Archbishop in Castle Hill and further facilities at Warriewood and Kingswood are also underway.

"The good news is that due to a strategic program of development of independent living units over the last decade, ARV has the financial strength to see through the current challenging times and continue to serve our existing and new residents effectively and with absolute rock solid financial stability," Mr Barber said.