IPA Deakin SME Research Centre Recommendations Adopted By Federal Government - $2bn Win For Australian SMEs!
In an announcement made by the Treasurer which was built on the landmark research and original proposals made through the IPA Deakin SME Research Centre and our publication the Australian Small Business White Paper which delivers significant structural change to SME financing.
The establishment of the Australian Business Securitisation Fund and the progress towards an Australian Growth Fund are arguably the biggest structural reforms to small business finance we have seen; reforms we have been actively lobbying for.
“In publishing the 2018 Australian Small Business White Paper, we investigated enhancements to a Loan Guarantee Scheme. We also worked with the Australian Small Business and Family Enterprise Ombudsman through the Affordable Access to Capital Inquiry (https://www.asbfeo.gov.au/inquiries/affordable-capital-sme-growth).
“This bolstered our calls for structural change modelled on the British Growth Fund (UK) wherein the banks are levied to create a corpus of funds to enhance access to finance for slightly higher-risk SMEs and start-ups where the return on investment may be over a longer period.
“This could also be used as a vehicle to fuel a stronger securitisation market in Australia by enabling easier access to finance for small businesses.
“We welcome and congratulate the Australian Government for the creation of a $2billion Australian Business Securitisation Fund which will provide incentive and capacity to smaller banks and non-bank lenders to free capital up and lend to more small businesses. This will give those small businesses the confidence to grow and employ.
“The government has also clearly indicated it is progressing an Australian Growth Fund as mentioned in the Treasurer’s Press Release, again directly attributable to the work undertaken through the IPA Deakin SME Research Centre and the Small Business White Paper process.
“These policy changes will have long-term impacts on the viability of the small business community and are a direct result of the applied research undertaken through the IPA Deakin SME Research Centre. This model of applied research is clearly leading the world in delivering critical reform to the SME sector backed up with tangible policy announcements,” said Prof Conway.
Originally published on the Institute of Public Accountants