The Coalition has announced key reforms aimed at reducing red tape and promoting competition in the financial services sector.
One key reform is aimed directly at small-business owners, a crucial component of the Coalition’s election strategy. In an announcement last week, Shadow Treasurer Angus Taylor promised to simplify the loan application process for SMEs. In particular, he took aim at lending policies that require business owners to own a home.
“You should not need to own your own home to start a business,” said Taylor.
The Coalition plans to relax the terms and conditions for obtaining loans for SMEs by revising APRA’s Statement of Expectations for financial institutions.
Another significant initiative, according to Taylor, is enhancing competition within the finance sector.
The Coalition intends to achieve this by making the ACCC a permanent member of the Council of Financial Regulators and further amending APRA’s Statement of Expectations for financial institutions. In the latter case, it aims to wind back red tape for smaller banks to make them more competitive with the big players.
“These reforms will boost investment, enhance competition, and rebuild Australia’s financial services sector to better serve Australians,” Taylor claimed.
