FinTech Australia makes 2024-25 Pre-Budget submission
FinTech Australia has made a pre-budget submission to put forward views to inform the Government’s priorities for the 2024–25 Budget in May.
Our submission reasserts the need for continued support to ensure the fintech sector can continue to be a success story of home-grown innovation. Fintech in Australia has grown rapidly from just a $250 million industry in 2015 to a $45 billion industry, employing more than 36,000 Australians today. We outline how with the right support, fintech can provide the foundations for Australia’s digital economy and continue to be a driver of growth and productivity in Australia.
In our submission, we set out six key priorities to help achieve this which require support through the Budget process:
Continue fintech trade and investment support: Australian fintech is a fast-growing exporter and a source of inbound investment and new jobs. Existing funding for Austrade to deliver trade and investment outcomes expires this year and should be renewed.
Provide targeted support for initiatives to promote the Consumer Data Right (CDR): The success of CDR hinges on the development and commercialisation of new and innovative use cases. Alongside the consumer-facing ‘trusted brand’ initiative, funding should be provided to support and incentivise early-stage businesses to adopt CDR and build use cases.
Ensure ASIC is adequately resourced to deal with licensing influx: Unprecedented changes to Australia’s financial services licensing are underway, with new licensing requirements in the pipeline for payments service providers, digital asset platforms and Buy Now, Pay Later. Significant uplifts to the regulator’s licensing and ongoing supervision capabilities will be required to support these reforms’ success.
Expand National Reconstruction Fund (NRF) initiatives to more clearly capture fintech businesses: Broader key priorities in the NRF’s investment mandate can allow more fintech businesses to contribute to its success and anchor its investment returns.
Address the challenging funding environment for fintechs: Early stage fintechs and startups are experiencing a funding crisis. Existing incentives must be recalibrated to drive greater investment and rebuild investor confidence in the Australian market.
Review the Enhanced Regulatory Sandbox (ERS): The ERS is currently underutilised and not fit for purpose. An urgent review is required to make it more accessible in an increasingly complex regulatory environment for fintechs.
We look forward to seeing the outcomes of the Federal Budget in May.
