Federal Funds to Pilot Community Development Financial Institution Sector

Posted: Thursday, January 28, 2010 - 14:35

The Federal Government will provide $7.5 million to pilot approaches for developing a Community Development Financial Institution sector in Australia. The announcement was made at the Government's Social Inclusion Conference in Melbourne.

The Federal Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin told the Conference the scheme aims to get philanthropic, business and government support to cover the cost of lending, allowing low interest loans to be extended into the community

She says the community development financial institution (CDFI) sector is very small in Australia, especially in comparison to the UK and the US, and this needs to change.

Macklin says last year's global economic downturn made the government look at new approaches to helping the financially vulnerable. She says financial inclusion is an essential part of social inclusion and individuals need to build their confidence and skills to manage their money and empower people to build their own financial security.

Macklin says that during the economic downturn, the Government provided 30 million for no and low interest loans, which were put into disadvantaged communities around the country.

Opening the first Social Inclusion Conference, Macklin said the Federal Government had a strong commitment to social inclusion – describing it as the mainstay of the reforms the Labor Government has brought about over the last 2 years.

Macklin says that ensuring Australians have a fair chance of reaching their potential is a significant moral imperative for the Government.

She says taking on these issues demands a coordinated and concerted effort – not just from Government, but business and NFPs, working in partnership and 2010 will be a year to build the social infrastructure that is needed for social inclusion.

The 2-day Social Inclusion Conference is being hosted by the Federal Government. Its aim to is to exchange ideas, discuss topics and learn from participants on how to build a more socially inclusive Australia.