Jerome Jordan of Aged Care Service Australia Group has announced plans for a $15m aged care facility in Albury.

The 90bed home in Glenroy will replace an existing centre where nearly half the beds are in shared rooms.

"When it was constructed, it would have been very much in keeping with what aged care was at that time 25 to 30 years ago," said Mr Jordan.

"The only undermining factor in this whole equation was the fact that the building had certainly gone past its expiry date, certainly fully compliant and stuff but from a market, sensitivity point of view, it's outdated because it does have shared rooms and very few private ensuites."

The plans were unveiled as former Prime Minister Kevin Rudd weighed into the debate about Australia’s ageing population.

He said the country is facing a long-term fiscal challenge not only because the average age of the population is growing and requiring more expensive medical care, but the proportion of people in the workforce is diminishing at the same time.

"Government policy must therefore aim to encourage more people into the workforce, to re-enter the workforce, and to remain there for longer if that is their wish," said Mr Rudd. 

His comments come on the back of the federal government’s $1.2 billion aged are compact which aims to address that issue by funding complaint care providers. Whether providers can afford their end of the bargain is a bone of contention.