The Morrison Government has commenced a review of the $2 billion Australian Business Securitisation Fund (ABSF) facility.
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 (SME’s), 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, small and medium‑sized businesses 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 Morrison Government has implemented to support SME’s 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.
The Government has published a consultation paper and terms of reference for the review on the Treasury website.
Treasury will provide its final report to the Government by 25 March 2022.
