Once Matt has designed the area, he will help build it, dismantle it, pack it into a shipping container and travel to Niue to help reassemble the structure.
He said elderly people currently stayed in a ward consisting of four rooms, two people to a room. The rooms weren't big and the elderly were restricted to their beds.
The project is at the design phase and Matt said the concept was so far pretty basic.
"We know that they need places to eat other than in their beds and a place to relax."
The area was likely to be an outdoor area with structures, and potentially gardens, and Matt wanted the space to have a "homely" feeling.
"Not have the same chair, not have every lamp the same, something that's not chemical, boring, like the hospital, just unique - a place where they want to go."
Matt's being supported by staff and students from Victoria University and a student will travel to Niue to find out exactly what the elderly residents want and need. "That's probably one of the most important things ... if they want a big, open deck, want something inside or that's sheltered."
The fundraising is the part Matt thinks will be most challenging.
He said the idea started with him trying to think of something he could design to help the local school but after discussions with New Zealand High Commissioner in Niue, Mark Blumsky, it was decided he would design an area for the aged care facility at the hospital.
Matt said Mitre10 Mega had been "crazy generous" and had offered space to build the area and may give him a builder to help. "They're potentially going to send that builder to help us build it and supply all the materials at cost."
He is planning to have the space built by the Christmas holidays, and then rebuilt in Niue in April and said he would feel overwhelmed when it was completed.
"That feeling when you give someone a present, you can't really describe it, it's just a good feeling."
Mr Wilson said he was "incredibly proud" of his son.
"At the end of the process he will be able to stand tall and proudly proclaim to have done something so worthwhile.
"He will have also developed many skills and contacts that will help him once he leaves school and begins his own journey through life," Mr Wilson said.
