Victoria’s 79 councils provide much of the infrastructure that is fundamental to the functioning of communities across our major cities, towns and regions.

The Community Infrastructure Loans Scheme (the Scheme) is a recognition of the need for continued investment in community infrastructure by councils across Victoria.

The Scheme will support the delivery of community infrastructure by providing Victorian councils with access to low-interest subsidised loans of between $500,000 and $10 million per project.

Loans will be financed through Treasury Corporation of Victoria. Participating councils will receive an interest subsidy from the Victorian government that will further reduce the interest paid.

All Victorian councils will be eligible to apply for loans under the Scheme.

Guidelines for the Scheme are now being prepared.  It is anticipated that the Scheme will open for applications in mid October 2019 and will close in late November 2019.

Program Overview

The Community Infrastructure Loans Scheme will support the delivery of community infrastructure by providing Victorian councils with access to low-interest, government-guaranteed loans through Treasury Corporation Victoria of between $500,000 and $10 million per project. Up to $100 million in loan funds will be made available.

Under the Community Infrastructure Loans Scheme, councils will be able to achieve savings through having access to low-interest subsidised loans financed through Treasury Corporation of Victoria. The triple-A credit rating currently held by Victoria means that the State can borrow money at cheaper rates than are commercially available. As a guide, the interest rate for a ten-year loan from Treasury Corporation of Victoria is currently approximately 1.75 per cent.

In addition, participating councils will receive an interest subsidy from the Victorian government that will further reduce the interest rate paid. It is expected that this subsidy will be 50 per cent of the applicable interest rate, up to a maximum of 150 basis points (or 1.5 per cent).

Councils may submit applications for loans of between $500,000 and $10 million per eligible project. Individual councils may apply for one or more loans, up to a maximum of $10 million.

Loan terms will be up to 15 years. Treasury Corporation of Victoria will work with participating councils to identify the most appropriate loan term on a case-by-case basis.

Projects that could be supported by the Community Infrastructure Loans Scheme include, but will not be limited to:

  • community centres and hubs;
  • multi-purpose community facilities;
  • arts and cultural facilities;
  • public libraries;
  • kindergartens and early learning facilities;
  • restoration of heritage buildings to enable community use; and
  • parks, play spaces, reserves and trails.

Guidelines for the Community Infrastructure Loans Scheme are now being prepared.  

It is anticipated that the Scheme will open for applications in mid October 2019 and will close in late November 2019.  

An assessment process will then be undertaken with the announcement of the successful applications from February 2020.

Page last updated: 09/09/19