Australian government announces measures to support fintechs
(23 March 2016 – Australia) The Australian government has announced measures to support the rapidly expanding financial technology industry by reducing unnecessary red tape and regulatory requirements.
Earlier this week, Treasurer Scott Morrison announced a raft of measures to support financial technology companies, including cutting GST on digital currencies such as bitcoin, and clarifying tax concessions for venture capital (VC) investments in startups.
Speaking at Sydney fintech hub Stone and Chalk, Morrison said: “Fintech advances have the potential to radically transform how competition plays out in the Australian economy, to connect customers with businesses like never before. It will unlock demand.”
“Fintech is a positive disruption, which a successful economy like Australia can and must embrace.”
“The reason I’m excited about fintech, and what it can deliver, is that it has the power to transform our economy more broadly,” he said.
“For small businesses out there who find it difficult to attract capital, for large government agencies who are struggling with convoluted and difficult payment systems… to medium sized businesses that are trying to bring their products up to date and to connect with their consumers in way that haven’t before.
“We are looking to see these new fintech tools being able to lubricate our economy and drive the transition in our economy that previously wasn’t possible.”
In addition, Morrison commissioned the Productivity Commission to review so-called comprehensive credit reporting (CCR) and “outline options to increase data availability.”
Key people in the industry back the government’s move to help foster fintech companies.
Speaking to The Australian, Simon Cant, president of lobby group FinTech Australia applauded the reforms as delivering “great quick wins”.
David Brennan, founder of small-business lender Kikka Capital said the move will benefit consumers, highlighting how improving CCR “will enable better pricing of products as well as more flexible terms”.
He added: “The banks are holding out on this as they feel its their data, no one else’s and if everyone else is able to access this data and offer cheaper products it will erode their margin on lending products.”
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