How do you buy Australian government bonds?

Answer 1

You can buy Australian Government Bonds directly from the Reserve Bank of Australia (the RBA). The RBA publishes a buy and sell rate for bonds each day, and small investors can buy at that price without the need for a broker.

The Australian Government issues Fixed Coupon bonds (which are traditional fixed income bonds), and Capital Indexed bonds, which are inflation linked bonds where the capital amount of your investment increases with inflation each year.

Alternatively, if you don't want to buy bonds directly you can invest through a bond fund. There are a number which specialise in low risk AAA debt such as Australian government bonds.