The Hon Josh Frydenberg MP
SENATOR THE HON MICHAELIA CASH
Minister for Small and Family Business, Skills and Vocational Education
JOINT MEDIA RELEASE
4 November 2019
CONSULTATION ON LEGISLATION FOR AUSTRALIAN BUSINESS GROWTH FUND
The Morrison Government has today released for consultation exposure draft legislation that will give effect to the Government to invest in an Australian Business Growth Fund (BGF) to ensure that small and medium-sized businesses (SME’s) have access to the finance they need.
With better access to more competitive finance, SME’s will be able to grow, fulfil their potential and continue to underpin Australian economic growth and employment.
Small and medium-sized businesses find it difficult to obtain finance other than on a secured basis – typically, against the family home. They also find it difficult to access additional funding, once they have pledged all of their real estate as collateral.
The Government is committing $100 million in funding to establish the BGF and partnering with other financial institutions to provide equity funding to SME’s. The aim is for the Fund to grow to $1 billion as it matures.
This will significantly enhance the ability of SME’s to access funding, filling a gap in the market that is preventing them from reaching their full potential.
The BGF complements other Coalition Government initiatives to support SME’s including;
- Establishing the $2 billion Australian Business Securitisation Fund which helps small businesses get the funding they need at a better rate.
- Increasing and expanding the instant asset write off to $30,000 for businesses with a turnover of up to $50 million.
- Providing tax relief for businesses with a turnover of less than $50 million, and reducing the tax rate from 30% to 25% – the lowest rate in 50 years.
With more than 3 million small and medium-sized businesses employing around 7 million Australians, enhancing small business access to funding is part of the Coalition Government’s plan for a stronger economy.
Legislation to establish the BGF will be introduced to Parliament before the end of 2019.
All interested parties are invited to lodge submissions through the Treasury website before consultation closes on 8 November 2019.