The Minns Labor Government has extended the No Interest Loan Scheme ("the NIL Scheme") and Aged-Care Supported Accommodation ("the ASCA Program") in two major steps towards alleviating financial stress for low-income households across NSW.
The Government has committed $21.5 million in funding to administer the NIL Scheme for another five years, continuing its long 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.
With cost-of-living pressures putting the squeeze on many households, the NIL Scheme helps individuals and family who need it most by helping them avoid harmful or high-cost credit programs for crucial items. Over the 2023-24 financial year, the program provided a record number of 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 also 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.
This is part of the Minns Labor Government's plan to ease cost-of-living pressures on young people, families and downsizers.
For more information on the NIL Scheme, please visit: https://www.service.nsw.gov.au/transaction/find-a-no-interest-loans-scheme-nils-provider
For more information on the ASCA Program, please visit: https://www.nsw.gov.au/grants-and-funding/aged-care-supported-accommodation-program-acsap
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"We understand the pressure households in every corner of NSW are facing - whether they need to replace a stove, or a fridge, or are just trying to get help securing a new rental property.
"The No Interest Loan Scheme protects vulnerable people from turning to high interest, predatorial borrowing schemes which can lead down a slippery slope of debt.
"These programs have a long history of supporting the people who need it most, including older residents and domestic violence victim-survivors - and we're proud to be continuing this legacy."
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 of users of the No Interest Loans Scheme are renters and 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.
"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."
