SAY GOODBYE TO HOLLYWOOD: SLO-MO’S SHOW GIVES WAY TO SUBSTANCE

Today’s release of the latest round of equity crowdfunding reforms by the Turnbull Government proves its previous efforts were all show, no substance.

 

Labor warned that the Turnbull Government’s previous equity crowdfunding mechanism would lock out startups and small businesses waiting to raise funds.

 

Back in March we also warned that future reform would turn the Government’s equity crowdfunding reforms into a dodo.

 

Despite these warnings and calls to improve funding access for startups and small business, the Turnbull Government rammed their changes through the Parliament.

 

It was about being seen to do anything about equity crowdfunding, not the right thing. They wanted to put on a show but didn’t have any substance.

 

Today the Turnbull Government has listened and given ground, providing a funding framework that opens the door to proprietary companies to raise capital.

 

And - as predicted - today’s reforms gives the old equity crowdfunding dodo the taxidermy treatment.

 

The Opposition is committed to supporting solid equity crowdfunding reform.

 

It’s a modern way of using the internet to raise capital from “the crowd”. As long as it balances the needs of both business and investors it should be supported.

 

Labor will review the detail of the legislation and announce a formal position soon - but we welcome government moves to liberalise the equity crowdfunding framework.