About the Scheme

On 25 March 2009, the Australian Government announced that it would provide a guarantee over state and territory government borrowing to assist state and territory governments to continue to access funding in light of the considerable financial market turbulence at that time.

The Australian Government Guarantee of State and Territory Borrowing formally commenced on 24 July 2009.

Under the Guarantee, state and territory governments can apply for a guarantee over new and existing securities. However, the option to guarantee existing stock is only open to state and territory governments for 28 days from when they first apply. The guarantee is only available to issuance denominated in Australian dollars. Use of the Guarantee is voluntary.

State and territory governments wishing to access the guarantee need to apply to the Scheme Administrator. Information on the guarantee is set out in the Deed of Guarantee. Information for state and territory governments on eligibility, how to apply and reporting arrangements is in the Scheme Rules, Application Documentation and Reporting Requirements.

On 7 February 2010, the Australian Government announced that the Australian Government Guarantee of State and Territory Borrowing would close to new issuance of guaranteed liabilities. The ‘Final Issuance Date’ under the Scheme Rules was on 31 December 2010.

Guaranteed liabilities which existed on the Final Issuance Date remain guaranteed in accordance with their terms.