Australian Business Securitisation Fund
With more than three million small businesses in Australia, employing around seven million Australians, small businesses are an important underpinning of economic growth and employment. This is why the Coalition Government wishes to ensure small businesses are able to fulfil their potential and access the funding they need to be able to grow and succeed in the economy, particularly as funding is difficult to attain for small businesses and often has higher costs than are necessary.
The Coalition Government’s Australian Business Securitisation Fund will invest up to $2 billion in the securitisation market and transform small businesses’ access to funding. This fund will be administered by the Australian Office of Financial Management (AOFM) and will provide significant additional funding to smaller banks and non-bank lenders so that they will on-lend to small businesses on more competitive terms.
Additionally, the Coalition government has been in consultation with APRA and a number of financial institutions regarding the establishment of an Australian Business Growth Fund. This fund would provide longer term equity funding to small businesses, as many small businesses have difficulty attracting equity investment that enables them to grow without taking on additional debt or giving up control of their business. It is expected to follow similar international precedents, such as the United Kingdom’s Business Growth Fund, which has invested around $2.7 billion in a number of economic sectors since its 2011 establishment.
These funds add to the changes the Coalition Government has already made as part of our plan to back small businesses and strengthen the economy, including creating employee share schemes that are designed to help attract, retain and motivate employees. So far, the Government is also lowering taxes for small businesses to 25%, has cut nearly $6 billion worth of small business red tape and has extended the $20,000 instant asset-write off to the end of the financial year.
Enhancing small businesses’ access to funding and improving their chances of success is part of the Coalition Government’s plan for a stronger economy. Small businesses are also a significantly important contributor to the local economy and I hope that these changes will encourage and aid small businesses within Sturt, allowing them grow with the funding and backing they require.