Shovel Ready Partner - Local Government Finance Authority

Shovel ready logoShovel Ready Partner LGFA logo

Overview

The LGFA was created in 1983 to develop and implement borrowing and investment programmes for the benefit of the South Australian Local Government Sector. They provide competitive deposit and lending products to the sector and they source the majority of their funding from the sector.

Deposits

LGFA at call rate is currently 0.30%, which is 0.20% higher than the RBA official cash rate.

Competitive term deposit products rate available on application.

100% of your deposits held with LGFA are guaranteed by the State Government of South Australia.

Lending Products

Current Variable Rate Cash Advance Debenture (CAD) Rate 2.05%

Current Discounted Variable Rate Cash Advance Debenture (CAD) Rate 1.30%

(Linked to Covid Support Package and Infrastructure Partnership Loans)

Market leading fixed rate loans are available on application.

If you would like to arrange a meeting with an LGFA advisor please contact:

admin@lgfa.com.au or call 8223 1550.

The LGFA applies stringent credit criteria to assess the ability of a council to meet its repayment requirements for any borrowings.

Debt should be a key element in a council’s long-term financial plan as its correct use helps with the acquisition of planned infrastructure and the renewal of existing infrastructure as it supports intergenerational rating equity.

This ensures that ratepayers in the future, who will benefit from a council’s infrastructure, effectively contribute to its provision or replacement rather than this burden falling just on ratepayers at the time of acquisition or replacement.

There are very few business corporations in existence that have no or low debt policies. Well managed corporations will be continually scanning the environment in which they operate and their growth or expansion plans will include the use of profits, debt and equity as funding mechanisms.

The LGFA has prepared a useful paper to give a better understanding about the responsible use of debt by the South Australian Local Government sector.  This paper is available on the LGFA website - https://lgfa.com.au/use-of-debt/

If you would like to arrange a meeting with an LGFA advisor please contact:

admin@lgfa.com.au or call 8223 1550.

for more information...

Andrew Leader
Economic Stimulus Program Coordinator