Ayers Rock resort to be bailed out

The federal government will bail out the Indigenous Land Corporation in the wake of crippling debt from its controversial $300 million purchase of the Ayers Rock Resort near Uluru in central Australia.

Tuesday's budget confirmed the government will offer the corporation a concessional loan of up to $65 million in 2016-17.

The loan will significantly reduce its interest payments and allow the corporation to stop diverting resources from its core business of promoting the economic development of indigenous Australians.

Indigenous Affairs Minister Nigel Scullion hopes to get the resort on a more sustainable footing.

It had been an incubator for indigenous employment, he said.