LGFA Value Proposition: What we do for local government.

23 Nov 2016 12:05 PM | Anonymous

The Local Government Finance Authority (LGFA) is an important part of the South Australian local government community.  We were established in different economic times; however have remained relevant because we still provide competitive products to our members.

Why deposit your surplus funds with the LGFA?

  • We pay competitive market interest rates;
  • We benchmark our deposit and investment rates to the 4 major banks; and
  • Absolute security, the State Government of South Australia guarantee all of your deposits held with the Authority.
  • Cash Advance Debenture Products are floating or fixed rate, come and go facilities that allow flexible repayment options; and
  • Fixed rate loans that can be fixed for up to a term of 20 Years.
  • Deposits guaranteed by the State Government of SA, which attract competitive market rates;
  • Market leading lending rates;
  • Flexible loan products; and
  • The Bonus payment each year.
  • Your business contributes to the Tax Equivalent payment we make to the Local Government Research and Development Fund. Councils scan then access the funds to pay for various projects that benefit the Local Government sector as a whole.
  • Deposits sourced from the Local Government Sector are lent to other Councils and Prescribed Bodies around the State. 

The LGFA then uses Council Deposits, External Borrowings and LGFA reserves to fund loans to Councils and Prescribed Bodies around our State. Every dollar we source from the sector is a dollar we don’t need to borrow externally.


Loans to Councils:

Because of our mutual nature and support from the State Government, the LGFA are able to charge market leading lending rates to Councils and Prescribed bodies. The following LGFA loan products are innovative and often difficult to obtain from other lenders.

  • Cash Advance Debenture Products are floating or fixed rate, come and go facilities that allow flexible repayment options; and
  • Fixed rate loans that can be fixed for up to a term of 20 Years. 

When you use LGFA services you receive:

  • Deposits guaranteed by the State Government of SA, which attract competitive market rates;
  • Market leading lending rates;
  • Flexible loan products; and
  • The Bonus payment each year.

When you use the LGFA, the local government sector benefits by:

  • Your business contributes to the Tax Equivalent payment we make to the Local Government Research and Development Fund. Councils scan then access the funds to pay for various projects that benefit the Local Government sector as a whole.
  • Deposits sourced from the Local Government Sector are lent to other Councils and Prescribed Bodies around the State. 


Mailing Address:  5 Hauteville Tce EASTWOOD   Phone: 8291-7990   Fax: 8451-1568   E-mail: admin@lgprofessionalssa.org.au

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