THE state government has extended funding for both the No Interest Loan Scheme (“the NIL Scheme”) and Aged-Care Supported Accommodation (“the ASCA Program”).
The Government committed $21.5 million in funding to administer the NIL Scheme for another five years, continuing its history of providing fee and interest-free loans to low-income earners since its establishment in 1981.
The NIL Scheme helps eligible applicants to borrow up to $2,000 for appliances, furniture, car repairs or medical expenses, or up to $3,000 for housing-related expenses such as rental bonds or recovering from a natural disaster.
Over the 2023-24 financial year, the program provided 13,485 loans.
Families with dependents collectively earning $100,000 each year, or singles earning $70,000 each year, are eligible for a NIL Scheme loan.
The NIL Scheme additionally provides financial relief for those who have experienced family or domestic violence in the last 10 years, as well as people living on a pension.
In a further boost, the Government will also fund the ASCA Program from 1 July 2026 to 30 June 2031 at a total of more than $8.5 million.
The ASCA Program supports not-for-profit organisations which empower older residents living in retirement villages, boarding houses and nursing homes.
These organisations help by giving guidance on older residents’ rights under the Retirement Villages Act 1999 and the Residential Tenancies Act 2010, including representation at tribunal hearings and assisting with resolving disputes.
In the last financial year, 4,849 individuals received legal services or community support through the ACSA Program.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the programs have a “long history of supporting the people who need it most, including older residents and domestic violence victim-survivors”.
NSW Fair Trading Commissioner Natasha Mann said, “NILS serves to protect vulnerable consumers from predatorial loan practices which might take advantage of them and their inability to reconcile their loans quickly.
“By offering this alternative, consumers can safely obtain items for the household or key medical procedures while safeguarding their financial wellbeing and independence.”
NSW Rental Commissioner Trina Jones said most users of the No Interest Loans Scheme are renters.
“By using these types of loans which don’t garner interest they can offset their expenses and use money to pay rent and avoid homelessness,” she said.
“NILS is an important scheme for vulnerable people renting homes allowing them another way to navigate their expenses so they don’t fall into a deeper cycle of debt.”
You can help your local paper.
Make a small once-off, or (if you can) a regular donation.
We are an independent family owned business and our newspapers are free to collect and our news stories are free online.
Help support us into the future.
