Jane Hume (Victoria, Liberal Party, Assistant Minister for Superannuation, Financial Services and Financial Technology) Share this | Hansard source

Firstly, I'd like to thank those senators who have contributed to this debate. The Australian Business Growth Fund Bill 2019 introduces new legislation that authorises the Commonwealth government to participate in forming and acquiring shares in or debentures of the Australian Business Growth Fund—the BGF—and appropriates $100 million for that purpose. The government recognises the challenges small and medium enterprises face in accessing capital and the lack of a patient capital market for SMEs in Australia.

Through the Australian Business Growth Fund, the government will offer growing, established companies patient capital and strategic support to assist them to reach their growth potential. The government is making a substantial contribution to the BGF, which will have an initial investment capacity of around $500 million, with potential to grow to around $1 billion as it matures. The BGF will make patient equity investments between $5 million and $15 million in small and medium businesses where they can demonstrate three years of revenue growth, profitability and a clear growth vision.

The government wants to take the opportunity to thank the other banks involved in the establishment and investment in the BGF, who are NAB, CBA, Westpac, ANZ and HSBC. The government also wants to take this opportunity to thank stakeholders that have assisted with the development of the BGF. The government has worked together with the banks and stakeholders throughout the design phase and will continue to do so ahead of the BGF making its first investment.

The BGF compliments other coalition government initiatives to support SMEs, including: establishing the $2 billion Australian Business Securitisation Fund, which helps small businesses get the funding they need at a better rate; increasing and expanding the instant asset write-off to $30,000 for businesses with a turnover of up to $50 million; providing tax relief for businesses with a turnover of less than $50 million; and reducing the tax rate from 30 per cent to 25 per cent—the lowest rate in 50 years. With this bill, the government is delivering upon its election commitment to invest over $100 million to help establish the Australian Business Growth Fund and its wider promise to support Australian small businesses. I commend this bill to the Senate.

Question agreed to.

Bill read a second time.