13 February 2019
Media Release - #2019018, 2019

Legislation introduced to establish $2 billion Securitisation Fund

Joint media release
with Senator the Hon Michaelia Cash
Minister for Small and Family Business, Skills and Vocational Education

The Coalition Government has introduced legislation to establish the $2 billion Australian Business Securitisation Fund which will see small and medium-sized businesses get better access to more competitive finance.

With better access to more competitive finance, small and medium-sized businesses 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 real estate. They also find it difficult to access additional funding, once they have pledged all of their real estate as collateral.

Even when small businesses can access finance, funding costs are higher than they need to be.

The Securitisation Fund will unlock a competitive funding source for smaller lenders, allowing them to compete with the major banks and on-lend to small and medium-sized businesses on more competitive terms.

The Fund will be administered by the Australian Office of Financial Management, consistent with their prior involvement in the Residential Mortgage Backed Securities Market in 2008.

With more than three million small and medium-sized businesses employing around seven million Australians, enhancing small business access to funding is part of the Coalition Government’s plan for a stronger economy.