Northern Territory small businesses will benefit from the Coalition Government’s introduction of a $2 billion Australian Business Securitisation Fund.
Country Liberals Senator for the Northern Territory, Nigel Scullion, said many Territory small business owners find it difficult to obtain finance unless they put up their family home as collateral.
“Even when small businesses can access finance, funding costs are higher than they need to be,” Senator Scullion said.
“To overcome this and ensure small businesses in the Territory are able to grow, the Australian Business Securitisation Fund will invest up to $2 billion in the securitisation market.
“This will provide significant additional funding to smaller banks and non-bank lenders to on-lend to small businesses on more competitive terms.”
The Government is also in consultation with regulators and financial institutions in regard to the establishment of an Australian Business Growth Fund. This fund would provide longer term equity funding to small businesses as many small businesses find it difficult to attract passive equity investment which enables them to grow without giving up control of their business.
“The Government has introduced a number of measures to support Australian small businesses including our small business tax cuts, the $20,000 instant asset write-off and cutting nearly $6 billion of red tape,” Senator Scullion said.
“With record lows of business confidence the Gunner Government has abjectly failed to inspire confidence and is driving investment away from the Territory. Labor’s job-killing and economy-wrecking agenda to halt the gas industry and failure to stand up for our live exporters to mention just a few, is having exactly its predicted effect.
“But sadly Gunner’s attack on small business is seemingly endless, with more liquor licencing red tape that will send mum and dad corner shops to the wall and won’t stop alcohol-fuelled crime, more administrative red tape around pastoral leases and environmental green tape aimed at stifling development and increasing administration costs for things like land clearing all adding to driving investment away during a downturn.
“If that wasn’t enough, this NT Labor Government produced a record deficit and is leaving Territorians with record debt that our children and grandchildren will be paying off.
“Only the Country Liberals can be trusted to manage the economy, guarantee essential services such as infrastructure while getting the budget back into surplus, giving hard working Australians tax relief and all while paying down Labor’s debt.”
With more than three million small businesses employing around seven million Australians, enhancing small business access to funding is part of the Coalition Government’s plan for a stronger economy.