West Australian local governments facing coronavirus-related cash flow pressures will be able to access a new lending facility offering short-term loans.
Announced by the State Government on 7 May, the facility will be available through the Western Australian Treasury Corporation (WATC).
To be eligible, local governments will need to demonstrate the impact Covid-19 has had, and is expected to have, on forecast cash flows for 2020-21.
Borrowings under the facility will not incur a loan guarantee fee, and local governments will benefit further from a 70 basis point reduction in the overall cost of borrowing through WATC.
WATC loans are assessed based on the borrower’s ability to pay, which factors in revenue streams such as local government rates, service charges, and developer contribution plans.
The State Government has also said it will freeze the waste levy in 2020-21 to help ease pressure on council budgets.