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The Hon Michael McCormack MP, Minister for Small Business, has said that the coalition government is “on the bandwagon” of fintech, particularly because of its role in supporting SMEs.
Speaking at the Informa Credit Law Conference in Surfers Paradise on Thursday (12 October), Minister McCormack said: “Our financial system, our economy, is undergoing a transformation — and fintech is, in many ways, at the forefront of this.
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“It’s changing the way business does business and opening new doors — through which there’s new products, more choice and, crucially, better value for the punters.
“In short, it’s pushing businesses to do better, to be better — something I know they’re primed to do.”
What’s more, Australia is particularly well positioned to be a leading player in this global phenomenon.
He highlighted a recent report from KPMG which found that Australia is now the second-largest alternative finance market in the Asia Pacific, with a value of over US$600 million.
Mr McCormack continued: “Fintech doesn’t just take in credit, payments and digital currencies — it also involves regtech (regulatory technology), data and analytics, and personal finance management.
“Its reach — and its potential — is enormous. And that’s why the Coalition Government is very much on the bandwagon.
“We see the benefits it brings to consumers and businesses — especially our go-getter small businesses, who are able to better compete with bigger rivals.”
‘Making Australia the very best place to start and grow a small business’
The minister went on to promote crowdfunding in its ability to support business.
He said: “Government has understood that different forms of finance are critical for innovative, early-stage businesses — ones that may have trouble securing traditional sources of funding.
“Money matters if you’re going to make your dream a reality. And that’s why we put in place a new crowd-sourced equity funding framework, which commenced a little less than two weeks ago.
“Under this framework, public companies can now raise funds directly from a large number of small investors.
“Additionally, the government has introduced legislation to extend the crowd-sourced equity funding framework to proprietary companies — extending availability to many more businesses.
“This will allow founders to crowdfund while still keeping the greater flexibility of the proprietary model — a huge win for them.”
The minister concluded that the government had a “big agenda, a bold agenda” and wanted to “make Australia the very best place to start and grow a small business”.
He said: “It’s a push that has seen the tax rate for small and medium-sized businesses dropped to its lowest level in 50 years; a push that has cut billions of dollars in red tape; and a push that has seen the $20,000 instant asset write-off extended for yet another year.
“It shows our belief in enterprise and hard work. And we’re also, at the same time, showing those beliefs don’t have to come at the expense of the little guy: the consumer.”
[Related: Minister for Small Business commends brokers for financing SMEs]
