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Crowd-sourced equity funding vital for innovation

20 October 2015

Joint media release with Minister for Industry, Innovation and Science, the Hon Christopher Pyne and Assistant Minister for Innovation, the Hon Wyatt Roy.

The Turnbull Government’s response to the Murray Financial System Inquiry (FSI) includes changes that will make it easier for Australia’s innovative businesses to crowd-source the funds they need to develop and grow.

One of the principal challenges facing startups is how to access the capital they need to finance their business in the early stages of development.

The Government is currently consulting with stakeholders with an intention to put in place new legislation to allow crowdfunding for Australian business.

Draft legislation for crowd sourced equity funding will be negotiated before the end of 2015. Consultations to facilitate crowd-sourced debt funding will start soon.

Minister for Industry, Innovation and Science, the Hon Christopher Pyne MP, said the FSI report would be welcome news to innovators.

“Driving innovation across the country is a top priority of the Turnbull Government, with crowd-sourced equity funding a vital part of any proposed policy changes,” Mr Pyne said.

“Crowd-sourced funding has a lot of potential as a new source of finance for innovative Australian companies and will encourage local entrepreneurs," Mr Pyne said.

Assistant Minister for Innovation, the Hon Wyatt Roy MP, said this was an important step for crowd-sourced equity funding.

“We’re in a global innovation race against competitor economies,” Mr Roy said.

“It’s critical our policy settings put us at the front of the pack if Australia is to be the one of the best places in the world to start and grow a business,” he said.

Mr Pyne’s Office: 02 6277 7070 pynemedia@industry.gov.au

Mr Roy’s Office: 02 6277 4646