The New South Wales government has launched the fifth round of its Low-Cost Loans Initiative, unlocking another AU$12 million to help regional communities accelerate housing delivery.
The grants program, now open to all 95 regional councils across the state, targets the upfront cost of critical enabling infrastructure.
To ease financial barriers, the NSW government will subsidise up to 50 per cent of interest costs on eligible loans, allowing councils to advance projects like roads, intersections, water mains, and sewerage upgrades.
For the first time, the eligibility pool has been expanded beyond standard local governments to include four major water utilities: Rous County Council, Riverina Water County Council, Goldenfields Water County Council, and Central Tablelands Water County Council.
The financial relief is designed to replicate the success of earlier rounds. Previous funding rounds backed substantial regional upgrades, including a AU$3.2 million interest subsidy for Wollongong City Council’s AU$28 million West Dapto Road upgrade, unlocking 1,500 new homes, and a AU$7 million contribution towards Port Macquarie Council’s AU$152 million Cowarra Water Treatment Plant, supporting 5,300 homes.
Smaller projects in regional areas like Forbes, Griffith, and Berrigan also received subsidies to prepare subdivisions and modernise water treatment.
Since its inception, the initiative has committed more than AU$31.3 million in interest subsidies, co-funding over AU$792 million worth of essential council infrastructure statewide.
Minister for Planning and Public Spaces Paul Scully said: “The Low Cost Loans Initiative helps councils right across rural and regional NSW deliver the essential infrastructure needed to support growing communities.
“It reduces borrowing costs, helping councils to fast-track the roads, water and sewer services they need.”
Minister for Regional NSW Tara Moriarty said that by partnering with local councils on infrastructure delivery, the state is creating more opportunities for people to live and work regionally while strengthening long-term community liveability.
“Regional communities need more new homes and the supporting infrastructure that makes more housing possible,” she said.
Applications for round five close on August 31.
