Michaelia Cash (WA, Liberal Party, Minister for Small and Family Business) Share this | Hansard source

I thank Senator Bushby for the question, and I am pleased to advise the Senate that the government has today announced further support for small and family businesses across Australia. This support is in relation to access to finance. Small businesses require access to finance in order to be successful, in order to prosper and in order to grow. However, it is well known that small businesses do have difficulties in finding access to finance. In fact, the RBA itself has said:

In contrast to large businesses, it remains challenging for young small businesses to fund their expansion plans.

As we know, and as has been articulated by so many small businesses, banks are reluctant to lend to small businesses unless the funding is secured by real estate, and that is, typically, the family home. So what we have announced today as a government is that we will support small businesses all around Australia with the introduction of a $2 billion securitisation fund, to help them get better access to finance and grow their businesses.

This is so important because there are around three million small businesses in Australia that employ around seven million Australians. And you need to as a government ensure that the businesses who cannot get access to finance are able to do this so that they can expand. When they expand, they prosper and grow. And when they prosper and grow, they employ more Australians. The securitisation fund will be administered by the Australian Office of Financial Management. What it's going to do is provide an additional source of funding to the smaller banks and non-bank lenders who, in turn, will be able to lend to small businesses at more competitive rates.

The announcement today by the Morrison government shows that we back small and family businesses every step of the way, because when they prosper and grow the Australian economy grows. (Time expired)