The federal budget acknowledges the growth of Australia’s growing fintech industry disrupting the financial services sector.
And $200,000 has been budgeted to promote Australia as a fintech development centre.
Another measure is starting a regulatory sandbox, an area to test proposed changes and ideas by fintech innovators.
ASIC (Australian Securities and Investments Commission) will start consultation on this regulatory sandbox to ensure policy is relevant for a digital economy.
The idea is to allow some fintech to test for six months with a group of customers while still ensuring consumer protections.
“We believe that Australia’s financial system laws and regulations should enable innovation,” according to the budget papers.
“Fintech offers real opportunities to boost our financial services exports, taking advantage of the growing middle class in Asia and increasing digitisation of commerce.”
Another fintech measure is to allow e-invoicing when companies deal with the federal government.
The budget allows for a detailed implementation study into the costs and benefits of adoring electronic invoicing.
This would mean small businesses spending less time re-entering invoice data for government contracts.
The government is also calling for feedback on the best way to ensure fintech startups are eligible for venture capital concessions.