Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Govt consults on Business Growth Fund legislation

consultation/SMEs/

5 November 2019
| By Chris Dastoor |
image
image image
expand image

The Federal Government has released consultation for the exposure draft legislation to allow the government to invest in an Australian Business Growth Fund (BGF) to help small to medium-sized enterprises (SMEs) increase financial access.

The government aimed to supply SMEs with access to more competitive finance in the hope they would grow and improve the economy.

In a joint statement from Treasurer Josh Frydenberg and Michaelia Cash, the minister for small and family business, skills and vocational education, the government would commit $100 million to establish the BGF.

They would also partner with other institutions to provide equity to fund SMEs, with the aim for the fund to grow to $1 billion.

“Small and medium-sized businesses find it difficult to obtain finance other than on a secured basis – typically, against the family home,” the statement said.

“They also find it difficult to access additional funding, once they have pledged all of their real estate as collateral.”

Legislation to establish the BGF would be introduced at the end of the year and submissions for consultation can be submitted before 8 November 2019.

The BGF aimed to complement the Coalition’s other plans to support SMEs, which included:

  • Adding the $2 billion Australian Business Securitisation Fund;
  • Increasing and expanding the instant asset write-off to $30,000 for businesses with a turnover up to $50 million; and
  • Providing tax relief for businesses with a turnover less than $50 million and reducing the tax rate from 30% to 25%.
Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

6 days 5 hours ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 month ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month 1 week ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 1 day ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 2 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND