Government Loan

Government loan in Australia is a great way to finance:

• Education
• New house
• Expand or develop your business

There are various criteria to obtain the government loan. This applies to the age, financial situation and indigenous background. In essence, the government funding is intended to uplift less privileged groups. However, it is still a loan and the borrower bears the responsibility to pay it off.

Government Loan for Education

Since 2005 Australian Government established Higher Education Loan Programme (HELP). It is designed to help eligible students complete their tertiary education. The programme is an improvement to the previously known HECS system. It offers more features and it is jointly funded by the Australian Taxation Office (ATO) and the Department of Education, Science and Training (DEST).

The smart thing about HELP is that it is the Tax Office, which is in charge of repayments. Therefore, the entire system is integrated into the salary taxation. The government loans, contrary to bank loans do not "destroy your life" if your income is insufficient. ATO adjusts the repayments based on your salary or wages.

Government Loan for New House

This programme is designed to uplift indigenous groups. The government institution - Indigenous Business Australia (IBA) provides low interest, long term home loans for indigenous Australians. The system offers some flexibility in repayments and encourages split loans (part from IBA and part from the private sector). The low interest and the extended loan term means, that the funding is only applicable to first home buyers. IBA loans are not intended for any investments. It is a loan for a primary house only.

Government Loan for Business

Indigenous Australians have two options to enquire about business loans:

• Indigenous Business Australia (IBA)
• Local, State and even Federal Government

For non-indigenous Australians, Local, State and Federal Government is the first door to knock for low interest funding. If the government or a council cannot provide finance directly then they will advice on the further research. The complete list of federal business funding programmes resides in government websites and publications.