Australian Budget sets scene for FinTech growth

  • The latest Budget statement from ‘down under’, on May 9, reaffirmed the Australian Government’s intention to turn the continent into a global fintech centre.

    Part of the plan is to impose a Aus$6.2bn levy on its banks over four years to contribute to the creation of “a more level playing field for smaller banks and non-bank competitors.”

    This followed the announcement only a day earlier that the Government had “tasked the Productivity Commission to commence a review on the state of competition in the financial system.” Simultaneously, the Australian Competition and Consumer Commission has been funded to the tune of Aus$13.2m over four years “to undertake regular inquiries into specific financial competition issues.”

    However, perhaps most interesting of all is the proposal to “establish an enhanced regulatory sandbox.” The statement goes on to say: “This world-leading regulatory sandbox will allow businesses to test, for a period of 24 months, a wide range of new financial products and services, allowing businesses to evaluate the commercial viability of new concepts without a license, but subject to meeting minimum consumer protection requirements.”

    Meanwhile, draft legislation has been introduced that will enable “proprietary companies to access crowd-sourced equity funding”, adding the proviso that “stakeholders will be protected by higher governance and reporting requirements.”

    And, finally, the Australian Government has committed to introducing an ‘open data’ regime by 2018, having first conducted an independent review on the best approach to implementation, which should be out by the end of this year.

    The package of proposals, which even includes the removal of taxation of digital currencies like Bitcoin, “delivers on the Government’s commitment to remove obstacles to the growth of FinTech.”

    How very sensible, joined-up and familiar a lot of this seems. The Australians have had the advantage of being able to see the successes and mistakes of other jurisdictions, not least the UK, and to pick their way through to the best, but this all sets the scene for the continued growth of a vibrant FinTech sector ‘down under’. One to watch and proof that first follower can sometimes be a better strategy than first mover.

Related articles

  • Read More

    Peer to Peer featured in Queen's birthday honours

    Good to hear that the pre-eminent pioneers of P2P lending in the UK are receiving formal recognition for their outstanding achievements. Described an a ‘Peer to Peer and Financial Inclusion...

  • Read More

    New Fintech Collaboration: Xero + Liberis

    Liberis, the card based finance provider, has announced an integration with Xero, the UK's leading online accounting software, to improve small businesses’ access to capital and credit....

  • Read More

    Consumer debt rises while businesses save

    Soaring levels of consumer debt are evidently causing the Bank of England, the Government and others in authority some sleepless nights. According to a recent report in The Guardian, the number of...

  • Read More

    Liberis and Sage launch Sage Pay Business Finance

    Sage Pay has teamed up with alternative business finance provider, Liberis,to give Sage customers access to flexible financing for the first time....

  • Read More

    ArchOver receives FCA authorization

    ArchOver, one of The Marketing Eye’s longest standing clients in the alternative finance sector, has been granted full authorisation by the Financial Conduct Authority (FCA). The news represents a...

  • Read More

    FinTech as a force for good

    Kids, they say, grow up quickly and nowhere is this more true than in FinTech. Barely five years ago, the phrase wasn’t even invented. Now it is the collective noun for billion dollar enterprises,...

  • Read More

    What is a bank?

    One of the recurring themes at this year's AltFi Europe event, organised by the excellent AltFi team, was a quest for the definition of a bank, or more particularly a bank of the future. Is it any...

  • Read More

    Giles Andrews' appointment marks another step on P2P’s road to maturity

    Students of the history of finance may one day look back on Giles Andrews’ appointment to the Chair of MarketInvoice (MI) as a major milestone in the evolution of the P2P sector....

  • Read More

    New community for Bank of England’s FinTech Accelerator

    The Bank of England has made steps towards improving relations between itself and the Fintech sector with the launch of its new community. The community intends to bring the Bank and Fintech-related...

  • Read More

    Credit where it’s due

    Sometimes you just have to say ‘well played’....

Take the first step

To find out more about how we can help you grow faster, please get in touch. We'd like to hear from you.  Or try our instant marketing healthcheck, it's free!

Quick Contact

Quick contact


Contact us

T 01825 765617


Our offices

Full details of our offices in London and Uckfield more

Request a call

'; ';