Policy Update - May #2
Federal Budget 2023 - Insights
The Treasurer delivered the Federal Budget last Tuesday 9 May 2023. While the primary focus of the Budget was providing cost of living relief, it also included several positives for the fintech sector:
Consumer Data Right (CDR) funding - The Government allocated $88.8m of fresh funding to support the operation of the CDR in banking, energy, and non-bank lending sectors, progressing the rollout of action initiation and cybersecurity uplift.
Support for SMEs and startups - An Industry Growth Program will be established to support Australian SMEs and startups to commercialise their ideas and grow their operations. This targeted funding will help early-stage fintechs weather difficult market conditions and continue to grow. The instant asset write-off threshold will also temporarily increase to $20,000 to help improve cash flow for small businesses
Investment in critical technologies - $116m will be provided to support critical technology development in Australia. This includes programs to support integrating quantum and AI technologies into the business operations of small and medium enterprises.
Sustainable Finance Agenda - A new Sustainable Finance Agenda aligns with a growing trend of fintechs incorporating sustainability and positive impact into their business models. Ensuring integrity in sustainability claims and developing a new sustainable finance taxonomy will make it easier for fintechs to adopt these approaches.
National Reconstruction Fund (NRF) - The Government will fund the establishment of the NRF - a $1.5b investment fund which will diversify and transform Australia's economy, including through targeted investments in enabling capabilities like fintech.
Access to talent - Measures to improve visa processing times, improve pathways to permanent residency and invest in strengthening STEM skills.
Cyber security, privacy, Digital ID and scams - The Government will also allocate funding to support improvements to cyber security for small businesses, privacy protection and enforcement, Australia’s anti-money laundering framework, the next phase of the Digital ID program, and the Combating Scams initiative.
House Economics Committee - Inquiry into promoting economic dynamism, competition and business formation
Earlier this month FinTech Australia and a panel of members appeared at a public hearing for the ongoing House Economics Committee Inquiry into promoting economic dynamism, competition and business formation.
The group discussed with Committee members how with the right support and policy settings, fintech can provide the foundations needed for a dynamic digital economy and continue to be a driver of growth and productivity in Australia.
Further information on the Inquiry and the transcript from the hearing can be found on the Australian Parliament House website.
Consultation - Senate Committee Inquiry into Senator Bragg's Digital Assets Bill
The Bill has been referred for inquiry to the Senate Economics Legislation Committee. It outlines a regulatory framework for digital asset exchanges, digital asset custody services and the issuing of stablecoins. Please note this is a private member's bill, introduced by an non-government Senator.
This new version of the Bill follows Senator Bragg's consultation last year on a draft version - FinTech Australia made a submission to this previous consultation.
