This scheme is administered by Independent Schools Tasmania on behalf of the Department of Education.
Eligibility for Loan Interest Subsidy
A loan interest subsidy is awarded in accordance with Part 5 of the Education Act 1994 to offset interest paid on a loan taken out for the purpose of eligible capital expenditure. This is expenditure incurred for the educational or residential purposes of the school's students and can relate to:
(a) the acquisition of land;
b) the erection, alteration and extension of buildings; and
(c) the installation of essential services.
Schools negotiating non-conventional loans, such as ‘lines of credit’ may be eligible if the borrowings are for approved purposes.
A loan interest subsidy is only available for that part of a loan which is used for eligible capital expenditure. Accordingly, it is possible to register the eligible portion of a loan for an interest subsidy payment.
Loans must be scheduled to be repaid within a period of no more than 20 years, this being the maximum period for allocating an interest subsidy for any loan.
Interest only loans are not eligible for a subsidy.
Only loans provided on a commercial, arms-length basis are eligible for a subsidy.