Posted November 10, 2019 05:13:52 A new “sustainable” investment loan scheme is under way in the Northern Territory.
Key points:Northern Territory Government says it will help businesses and investors who can’t access capital marketsThe scheme is being rolled out across the Northern TerritoriesUnder the scheme, investors who cannot access capital market are offered a loan for a set amount of money to fund the purchase of their first property.
Under the plan, the loan is capped at the purchase price, with investors receiving the full amount they can borrow at that time.
It is expected that the first stage of the scheme will see up to 1,000 investors in the Territory being offered loans of up to $20,000 each.
The Northern Territory Government is hoping that the program will reduce the cost of investing in the economy, which currently stands at $3.5 billion a year.
It will be funded through the Northern Investment Income (NII) Tax rebate and will allow investors to access capital capital markets in their home country for a fixed amount of time.
Under this scheme, eligible businesses will receive up to a $2,500 loan upfront and a minimum of $10,000 after that.
The amount of the loan can be set to vary depending on the type of investment and the size of the business.
The first phase of the program has already seen around 30 companies receive loans and another 100 have signed up for the program.
“We know that there is a need for investment in the northern territories, and we are committed to providing the Northern Australia region with the financial resources to support its businesses and people,” Northern Territory Treasurer Tim Nicholls said.
“The Northern Investment Loan Scheme is designed to meet this need.”
This will provide investors with access to an investment loan to fund their first purchase of property in the NT, with a minimum loan of $20 in the first phase.
“Northern Territory Premier Mike Rann, who announced the scheme on Wednesday, said it was a way of providing “a quick and easy solution to a problem that exists for many investors”.”
We are very pleased to be working with the Northern Australian Government and the Northern Development Investment Fund to implement this new investment loan model in the state of NT,” he said.
Northern Territory Finance Minister Michael McCormack said the Northern Government had set aside $7.5 million in the new investment funding program for Northern Territory businesses and the scheme would be rolled out to other parts of the NT over the next year.”
With the recent introduction of NIITA, we are seeing an increase in interest in the capital markets, and that is creating the opportunity for more Northern Territory investors to find new places to invest,” Mr McCormack told the ABC.”
Northern Territory businesses have also been looking to capitalise on their investments in the past and we have been providing the financial support necessary to ensure that we provide the Northern economy with the capital it needs.
“Mr McCormack was joined on Wednesday by Minister of Finance, Tourism and Sports, Scott Ryan, who said the scheme had been well received.”
I think the Northern Business Development Fund has done an excellent job of engaging with the NT Government to facilitate this loan and we look forward to working with them in the future,” Mr Ryan said.
The government hopes that the scheme could help boost investment in Northern Territory economic growth.”
Over the next few years, we will be working to improve the financial performance of Northern Territory business and provide the funding needed to support the growth of our economy,” Mr Nicholls told the National Press Club.
Topics:investment,business-economics-and-finance,government-and the-media,tax,australiaFirst posted November 10, 2020 16:37:49More stories from the Northern Isles