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Consultation On Legislation For Australian Business Growth Fund

Media Releases

Date : 04 November 2019

Author: The Hon Josh Frydenberg MP & Senator The Hon Michaelia Cash

The Hon Josh Frydenberg MP
Treasurer

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;

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.

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