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NSW Department of Planning, Industry and Environment
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About the Low-Cost Loans Initiative

The Low-Cost Loans Initiative (LCLI) assists councils with the cost of borrowing to fund new infrastructure by providing a 50% refund of the interest paid on loans. This will help councils to bring forward the deliver y of infrastructure they have been planning to support their growing communities in new housing areas.


Housing affordability is a key priority for the NSW Government and, in 2017, the Premier released a Housing Affordability Strategy – A Fair Go for First Home Buyers: A plan to improve housing affordability. The LCLI is one of the measures identified to achieve the Premier’s Priority on housing affordability. which outlined a comprehensive package of measures designed to improve housing affordability across NSW.


What is offered under the LCLI?

The key aim of the LCLI is to enable new housing supply. The essential elements are:

  • The NSW Government will refund 50% of the costs of council’s interest payments on loans for eligible infrastructure
  • The council is responsible for repaying the loan which is funded by TCorp, or another financial institution of the council’s choice, on their standard terms and prudential requirements.


Which councils can apply?

All councils that are eligible to apply for the TCorp loan facility are also eligible to apply for the LCLI. Loans may be taken out through TCorp or another financial institution of council’s choice. The loans must be used for infrastructure that enables new housing supply.


For more information see the guidelines and FAQs.


Page last updated: 25/10/2018