Australian Business Securitisation Fund

Background

In November 2018 the Treasurer announced the Government’s intention to create the Australian Business Securitisation Fund (ABSF), a $2 billion fund to support the provision of finance to small to medium enterprises (SMEs) on more competitive terms.

The Treasurer also announced that the ABSF would be administered by the AOFM, with investments to be made in securitisations of loans made by SME lenders, including via warehouse facilities.

The ABSF’s enabling legislation provides for the first tranche of $250 million to be transferred to the ABSF’s special account on 1 July 2019. A second tranche of $250 million will be transferred on 1 July 2020. Additional transfers, each of $500 million, will occur on 1 July of 2021, 2022 and 2023.

Legislation and supporting instruments

The enabling legislation for the ABSF, the Australian Business Securitisation Fund Act, received Royal Assent on 5 April 2019.

On 10 April 2019 the Treasurer issued legislative instruments which commenced on 16 April 2019. These are the Australian Business Securitisation Fund Rules, and the Australian Business Securitisation Fund Investment Mandate Directions.