Appropriate policy, regulation and broader government support are crucial for the continued development of the fintech sector and imperative if Australia is to be globally competitive. In recent years there have been a number of policy initiatives set in place to help the Australian industry realise its potential. However, despite the various initiatives, for the first time we have seen an increase in dissatisfaction around government policy. There is a belief that the Federal Government is less supportive than overseas jurisdictions (45% in 2018 v. 63% in 2019).
On the tightening regulatory framework on Australian fintechs, one in two fintechs express concern, perceiving that the level of regulation is ‘excessive’ (48%). This negative sentiment is perpetuated by continued barriers to accessing offshore talent through a skilled migration visa, and a further reduction in the R&D Tax incentives.
The R&D tax incentive evokes mixed reactions. Well over half (58%) of the fintechs interviewed had successfully applied for the incentive, with 76% saying that access to the scheme encourages them to keep aspects of their business on-shore. The prevailing concern is around the lack of clarity and certainty, along with reduction in the scheme.
For detailed information about growth initiatives and policy developments, please download the EY FinTech Australia Census 2019 Report.