Govt releases vision for fintech sector
The Government has released its statement on “Australia’s FinTech future”, declaring we need to keep pace with innovation in the sector to remain competitive.
In a statement Treasurer Scott Morrison said the Turnbull Government is creating an environment where Australia’s FinTech sector can be internationally competitive and energise the broader local economy by attracting and keeping talented entrepreneurs in Australia.
According to Mr Morrison, The Government’s actions to support the FinTech industry include:
- Ensuring access to concessional tax treatment for venture capital investments in start-up FinTech firms;
- Commissioning the Productivity Commission to outline options to increase data availability and access to facilitate new products and better consumer outcomes;
- Taking action to address the ‘double GST’ treatment of digital currencies, and;
The Government will also work with the FinTech industry on further reforms to:
- Allow all companies regardless of assets and turnover to be eligible for Equity Crowdfunding;
- Remove cooling off periods and allow platforms to use their discretion to cancel an investment for legitimate reasons;
- Review Australian Market Licence (AML) requirements for crowdfunding intermediaries.
Mr Morrison said the Government will also consult with industry on the next phase of Australia’s crowd funding framework to ensure that the broader economy and wider business community can gain appropriate access to new and alternative equity funding options.
The Government also announced yesterday, together with ASIC, the release of new guidance notes for ‘robo-advice’, or digital financial product advice, to provide greater clarity to new providers of this advice to Australian consumers.
ASIC has also released guidance to assist providers of marketplace (also known as 'peer-to-peer') lending products, including information about legal obligations.
In addition, Mr Morrison said, the Government has been working with ASIC on the development of a ‘regulatory sandbox’ for Australian FinTech.
“The Government is keen to develop a world leading ‘regulatory sandbox’ in Australia that will enable firms to manage regulatory risks during testing stages, reducing the cost and time to market products. At the same time, any ‘sandbox’ will need to provide for important consumer outcomes such as fit and proper checks, dispute resolution and consumer redress arrangements.”
Mr Morrison concluded his statement by saying FinTech is a positive disruption which a successful economy like Australia can and must embrace.
“Growing Australia’s FinTech capabilities will position Australia to seize new opportunities to develop export markets for our financial services technology in the transitioning economies of our major trading partners.”
“Developing this new sector means a stronger economy in transition for Australians, delivering more jobs and growth,” Mr Morrison said.