FinTech Australia is looking for an pressing recalibration of Analysis and Improvement tax incentives (RDTI) and the Early Stage Enterprise Capital Restricted Partnership (ESVCLP) Program in its submission to treasurer Jim Chalmers forward of the federal price range subsequent week
The height physique’s 21-page pre-Funds submission makes 11 suggestions to Treasury, arguing that with the best assist, fintech can lay the foundations for Australia’s digital financial system, assist cut back the price of residing via smarter monetary options, and cement its position as a driver of innovation and productiveness throughout the nation.
“Early-stage fintechs and startups are navigating a funding disaster that dangers undermining Australia’s fintech innovation ecosystem,” the submission warns recommending focused enhancements to R&D tax incentives, the ESVCLP Program, and the Enhanced Regulatory Sandbox to scale back boundaries.
Different suggestions together with higher funding for regulators reminiscent of ASIC, APRA, the ACCC and AUSTRAC, increasing the Shopper Knowledge Proper (CDR), strengthening cybersecurity and fraud prevention, streamlining the fintech expertise visa pathway to draw international experience, whereas additionally upskilling native employees, supporting AI and rising applied sciences, and increasing the Nationwide Reconstruction Fund to assist fintech and enabling capabilities.
FinTech Australia CEO Rehan D’Almeida stated Australia is at present liable to making a two-speed fintech ecosystem, the place bigger gamers proceed to develop, however smaller startups that could possibly be the following Afterpay or Up Financial institution are struggling.
“We’re seeing this play out throughout the accessible funding knowledge. Whereas it’s taking extra time, extra established fintechs are nonetheless securing funding,” he stated.
“In the meantime, early-stage fintechs — a lot of whom are flying underneath the radar — are struggling to search out funding. That is the place authorities intervention can have the best influence.”
“That is particularly regarding because the sector embraces AI, and early, modern fintechs are starting to search out new alternatives to enhance monetary literacy and competitors in Australia.”
“We proceed to listen to stories from founders that Australia’s R&D tax incentive system is simply too complicated and too time consuming for early stage founders. The Authorities’s Strategic Examination of Analysis and Improvement, introduced as a part of the 2024-25 Funds is a chance to vary this for the higher.”
D’Almieda stated FinTech Australia additionally desires to see the overlapping compliance frameworks managed by a number of businesses be simplified to boost the potential of the digital financial system , and there must be a refocus on fintech as a key worldwide export, with a name to resume the sector’s partnership with Austrade.
Fintech’s peak physique additionally desires an pressing evaluation of the Enhanced Regulatory Sandbox to make sure it’s match for goal.
“With ongoing uncertainty overseas, now’s the very best time to deal with our strengths and reinforce our fintech ecosystem with the right coverage settings,” D’Almieda stated.
“Australia is a number one nation for fintech. Most of the monetary applied sciences we use day by day in Australia aren’t accessible in different developed international locations. With a refreshed deal with the sector it might grow to be an important export for our nation.”
