Dr McDonald said the planned development of at least three significant complexes in the south-west over the next two years were badly needed. They would help shift the elderly who are inappropriately accommodated in public hospitals to better long-term facilities.

``The biggest issues we have for hospitals world-wide is bed block and the greying of the world because we're living longer,'' he said.

``Traditionally, the Federal Government funded aged care and the states funded the hospitals and under the Howard [Liberal] government there was a disincentive on either side to do anything about it. We've now got a three-year window of opportunity to do something about this.''

Dr McDonald said improvements in the aged-care industry meant new developments were focused on accommodating the needs and expectations of the elderly population, with an emphasis on ``healthy ageing'', including activity, engagement with society and having meaningful projects, such as volunteering, to work on.

Last week, Anglicare announced its aged-care division, Chesalon Living, would build a $30million village in the Ingleburn Garden Estate, at the M7 and M5 junction.

The development approved by Campbelltown Council includes a 123-bed facility and 43 serviced apartments on 1.3hectares.

Construction will begin early next year, with the first stage expected to be released in 2010.

Anglicare Sydney’s Chesalon Living director Rob Evers said the centre, the first of its kind for the organisation,

was a mix of the independent living and care that elderly people sought.

‘‘It’s a very common story to hear that couples have been separated due to a lack of suitable accommodation

to cater for their needs,’’ he said.

The complex is planned opposite a school and kindergarten that are expected to assist Anglicare’s