Review started on Australian Business Securitisation Fund

The review, which is required under the legislation to be undertaken two years after the commencement of the ABSF, will assess the effectiveness of its support to small and medium‑sized businesses (SMEs), taking into account the impact of the COVID‑19 pandemic.

The ABSF is administered by the Australian Office of Financial Management and is designed to unlock a competitive funding source for smaller lenders, allowing them to compete with the major banks and on‑lend to small and medium‑sized businesses on more competitive terms.

With better access to more competitive finance, SMEs are able to grow, fulfil their potential and continue to underpin Australia’s economic recovery from COVID‑19.

The ABSF is complemented by a range of other measures the federal government has implemented to support SMEs during the COVID‑19 pandemic, including the SME Recovery Loan Scheme, SME Guarantee Scheme, instant asset write‑offs, temporary loss carry‑back extension, and access to finance through the Structured Finance Support Fund and the Australian Business Growth Fund.