The Turnbull Government has announced changes that it says will make it easier for Australia’s innovative businesses to crowd-source the funds they need to develop and grow.
The changes were part of the Government's response to the Murray Financial System Inquiry (FSI).
In a joint statement, Minister for Industry, Innovation and Science, Christopher Pyne, and Assistant Minister for Innovation, Wyatt Roy, said the changes were designed to address one of the principal challenges facing start-ups - how to access the capital they need to finance their business in the early stages of development.
The Government said it 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," it said.
“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,” said Mr Pyne.
“Crowd-sourced funding has a lot of potential as a new source of finance for innovative Australian companies and will encourage local entrepreneurs," he added.
Mr Roy 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.