Australian Government Architecture Reference Models Version 3.0

5.4.1 [201] Credit and Insurance F
Credit and Insurance involves the use of government funds to cover the subsidy cost of a direct loan or loan
guarantee or to protect/indemnify members of the public from financial losses.
Business Sub Function Defines the set of Business Capabilities that
20101
Direct Loans F
20102
General Insurance F
20103
Loan Guarantees F
� affect the disbursement of funds by the government to a nongovernment
borrower under a contract that requires the repayment
of such funds with or without interest.
� An example of a direct loan is the Higher Education Loan Program
(HELP) for tertiary students.
� affect the provision of protection to individuals or entities against
specified risks. The specified protection generally involves risks
that private sector entities are unable or unwilling to assume or
subsidise and where the provision of insurance is necessary to
achieve social objectives.
� affect any guarantee, insurance, or other pledge with respect to the
payment of all or a part of the principal or interest on any debt
obligation of a non-government borrower to a non-government
lender, but which does not include the insurance of deposits,
shares, or other withdraw-able accounts in financial institutions.
5.4.2 [202] Government Financial Assistance F
Australian Government Financial Assistance refers to the provision of earned and unearned financial or
monetary-like benefits to individuals, groups, or corporations. This includes support and facilitation of the
payment of monies to the government from individuals, businesses and other organisations.
Business Sub Function Defines the set of Business Capabilities that
20201
Concessions
20202
Government Grants F
20203
Payments to Citizens
� affect government financial assistance through concessions that do
not directly involve money (including health and travel
concessions).
� affect the disbursement of funds by the government to a nongovernment
entity to help fund projects or activities (including the
processes associated with grant administration, including the
publication of funds availability notices, development of the grant
application guidance, determination of grantee eligibility,
coordination of the peer review/evaluation process for competitive
grants, the transfer of funds and monitoring/oversight as
appropriate).
� affect the discretionary and non-discretionary disbursement of
funds from the government to beneficiaries (individuals or
organisations) who satisfy government eligibility requirements, with
or without restrictions imposed on the recipient as to how the
money is spent.
� Payments include both earned and unearned government
entitlement programs such as welfare assistance, unemployment
benefits, medical benefits, etc.
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