{"id":"C2020A00028","name":"Australian Business Growth Fund (Coronavirus Economic Response Package) Act 2020","slug":"australian-business-growth-fund-coronavirus-economic-response-package-act-2020","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"28 of 2020","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436322,"registerId":"C2020A00028-fast-fetch-1775953554832","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Australian Business Growth Fund (Coronavirus Economic Response Package) Act 2020","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nAustralian Business Growth Fund (Coronavirus Economic Response Package) Act 2020\n\n \n\nNo. 28, 2020\n\n \n\n \n\n \n\n \n\n \n\nAn Act about Commonwealth investment in the Australian Business Growth Fund, and for related purposes\n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Short title\n\n2 Commencement\n\n3 Object of this Act\n\n4 Simplified outline of this Act\n\n5 Definitions\n\n6 Crown to be bound\n\n7 Extension to external Territories\n\n8 Extra‑territorial application\n\nPart 2—Commonwealth investment in the Australian Business Growth Fund\n\n9 Simplified outline of this Part\n\n10 Commonwealth investment in the Australian Business Growth Fund\n\n11 Arrangements relating to the operations of the Fund\n\n12 Minister has powers etc. of the Commonwealth\n\n13 Constitutional limits\n\n14 Fund not to become a Commonwealth company\n\n15 Executive power\n\n16 Rules about the exercise of powers etc. under this Act\n\nPart 3—Miscellaneous\n\n17 Simplified outline of this Part\n\n18 Appropriation of Consolidated Revenue Fund\n\n19 Delegations by the Minister\n\n20 Annual report\n\n21 Review of operation of this Act\n\n22 Rules\n\n \n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\nAustralian Business Growth Fund (Coronavirus Economic Response Package) Act 2020\n\nNo. 28, 2020\n\n \n\n \n\n \n\nAn Act about Commonwealth investment in the Australian Business Growth Fund, and for related purposes\n\n[Assented to 24 March 2020]\n\nThe Parliament of Australia enacts:\n\nPart 1—Preliminary\n\n \n\n1  Short title\n\n  This Act is the Australian Business Growth Fund (Coronavirus Economic Response Package) Act 2020.\n\n2  Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this Act The day after this Act receives the Royal Assent. 25 March 2020\n\n\nNote: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.\n\n3  Object of this Act\n\n  The object of this Act is to increase investment in small and medium Australian enterprises by the Commonwealth participating in, and investing in (together with other persons), the Australian Business Growth Fund in accordance with this Act.\n\n4  Simplified outline of this Act\n\nThis Act authorises investment by the Commonwealth in the Australian Business Growth Fund.\n\n5  Definitions\n\n  In this Act:\n\nAustralian Business Growth Fund or Fund: see subsection 10(4).\n\nCommonwealth company has the same meaning as in the Public Governance, Performance and Accountability Act 2013.\n\nCorporations Act company means a body corporate that is incorporated, or taken to be incorporated, under the Corporations Act 2001.\n\ndebenture has the same meaning as in the Corporations Act 2001.\n\nrules means rules made under section 22.\n\nsubsidiary has the same meaning as in the Corporations Act 2001.\n\n6  Crown to be bound\n\n (1) This Act binds the Crown in each of its capacities.\n\n (2) This Act does not make the Crown liable to be prosecuted for an offence.\n\n7  Extension to external Territories\n\n  This Act extends to every external Territory.\n\n8  Extra‑territorial application\n\n  This Act extends to acts, omissions, matters and things outside Australia.\n\nPart 2—Commonwealth investment in the Australian Business Growth Fund\n\n \n\n9  Simplified outline of this Part\n\nThe Commonwealth may invest in a Corporations Act company that is the Australian Business Growth Fund for the purpose of providing small and medium Australian enterprises with access to capital (within constitutional limits).\n\nThe Commonwealth may make arrangements relating to the operations of the Fund, but must not control the Fund.\n\n10  Commonwealth investment in the Australian Business Growth Fund\n\n (1) The Minister may, on behalf of the Commonwealth, do either or both of the following:\n\n (a) participate in forming a Corporations Act company;\n\n (b) acquire shares (either by purchase or subscription) in a Corporations Act company, or become a member of a Corporations Act company;\n\nin circumstances that would not result in the company becoming a Commonwealth company.\n\n (2) The Minister may, on behalf of the Commonwealth, acquire debentures (either by purchase or subscription) of a Corporations Act company.\n\n (3) However, the Minister may not exercise the powers conferred by this section in relation to more than one Corporations Act company.\n\n (4) For the purposes of this Act, if the Minister exercises a power conferred by this section in relation to a company, that company is the Australian Business Growth Fund (whether or not the company’s name includes the words “Australian Business Growth Fund”).\n\n11  Arrangements relating to the operations of the Fund\n\n (1) The Minister may, on behalf of the Commonwealth, make arrangements, relating to the operations of the Fund, with any of the following:\n\n (a) the Fund, or a Corporations Act company that is proposed to become the Fund;\n\n (b) a member of the Fund, or a proposed member of the Fund;\n\n (c) a subsidiary of the Fund;\n\nin circumstances that would not result in the Fund becoming a Commonwealth company.\n\n (2) An arrangement made under subsection (1) may provide for the Commonwealth to make payments.\n\n12  Minister has powers etc. of the Commonwealth\n\n  The Minister, on behalf of the Commonwealth, has all the rights, responsibilities, duties and powers of the Commonwealth in relation to the Commonwealth’s capacity as:\n\n (a) a member of the Fund; or\n\n (b) a shareholder in the Fund; or\n\n (c) a holder of debentures of the Fund; or\n\n (d) a party to an arrangement made under section 11.\n\n13  Constitutional limits\n\n (1) The Minister may exercise a power conferred on the Minister by section 10, 11 or 12 only if arrangements of the kind referred to in subsection (2) of this section have been made, or will be made before the Fund makes any investment.\n\n (2) The arrangements are arrangements requiring the Fund to apply money received from the Commonwealth only:\n\n (a) with respect to trade or commerce:\n\n (i) between Australia and places outside Australia; or\n\n (ii) among the States; or\n\n (iii) within a Territory, between a State and a Territory or between 2 Territories; or\n\n (b) with respect to a Territory; or\n\n (c) with respect to the implied power of the Parliament to make laws with respect to nationhood; or\n\n (d) otherwise with respect to the executive power of the Commonwealth.\n\nExample: Arrangements could allow the Fund to apply money received from the Commonwealth, for the purpose of generating a commercial return for the Fund, in a small or medium Australian enterprise that is engaged predominantly in trade or commerce between Australia and places outside Australia.\n\n (3) To avoid doubt, the Minister may exercise a power conferred by section 10 or 11 for the purpose of making arrangements of the kind referred to in subsection (2) of this section.\n\n (4) If:\n\n (a) the Commonwealth holds shares in or debentures of, or is a member of, the Fund; and\n\n (b) either of the following applies:\n\n (i) arrangements of the kind referred to in subsection (2) are unlikely to be made before the Fund makes any investment;\n\n (ii) arrangements of the kind referred to in subsection (2) are no longer in force;\n\nthe Minister must, as soon as practicable, take such steps as are necessary to divest the Commonwealth of its investment in the Fund.\n\n (5) Subsection (1) applies in relation to a right, responsibility or duty conferred on the Minister by section 12 in the same way that subsection applies in relation to a power conferred on the Minister by that section.\n\n14  Fund not to become a Commonwealth company\n\n  The Minister must ensure that the Fund does not become a Commonwealth company.\n\n15  Executive power\n\n  This Part does not, by implication, limit the executive power of the Commonwealth.\n\n16  Rules about the exercise of powers etc. under this Act\n\n  The rules may make provision for, or in relation to, the exercise of rights, responsibilities, duties and powers by the Minister under this Act.\n\nPart 3—Miscellaneous\n\n \n\n17  Simplified outline of this Part\n\nThis Part contains miscellaneous provisions, including an appropriation of the Consolidated Revenue Fund, delegation of the Minister’s powers under this Act, reporting on the operation of this Act, and conducting a review of the operation of this Act.\n\nThis Part also contains the general rule‑making power.\n\n18  Appropriation of Consolidated Revenue Fund\n\n (1) The Consolidated Revenue Fund is appropriated to the extent of $100 million for the following purposes:\n\n (a) paying the costs of, or incidental to, the Commonwealth’s participation in the formation of the Fund under section 10;\n\n (b) paying the costs of, or incidental to, the acquisition by the Commonwealth of shares (either by purchase or subscription) in the Fund under section 10;\n\n (c) paying the costs of, or incidental to, the acquisition by the Commonwealth of debentures (either by purchase or subscription) of the Fund under section 10;\n\n (d) paying amounts payable by the Commonwealth under an arrangement made under section 11;\n\n (e) paying or discharging any other costs, expenses or other obligations incurred by the Commonwealth exclusively in connection with the Fund.\n\n (2) If no amount has been debited against the appropriation set out in subsection (1) by the end of the period of 2 years beginning on the day this Act commences, the appropriation ceases to have effect for any purpose at the end of that period.\n\n19  Delegations by the Minister\n\n (1) The Minister may, by written instrument, delegate all or any of the Minister’s powers or functions under this Act (other than the Minister’s powers under section 22) to:\n\n (a) the Secretary of the Department; or\n\n (b) an SES employee, or an acting SES employee, in the Department.\n\nNote: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901.\n\n (2) In exercising powers or functions under a delegation, the delegate must comply with any directions of the Minister.\n\n20  Annual report\n\n  The annual report prepared by the Secretary of the Department and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include a report on the operation of this Act during the period.\n\n21  Review of operation of this Act\n\n (1) The Minister must cause a review of the operation of this Act to be undertaken as soon as possible after the third anniversary of the commencement of this Act.\n\n (2) The review must include:\n\n (a) the effectiveness of this Act in meeting the object of this Act; and\n\n (b) the effectiveness of any investment by the Commonwealth in the Fund in relation to the following:\n\n (i) demand for equity investments by businesses;\n\n (ii) the impact of the creation of the Fund on the overall access to capital for small and medium Australian enterprises;\n\n (iii) the impact of the creation of the Fund on competition within capital markets in relation to small and medium Australian enterprises;\n\n (iv) the operation of the rights and powers of the Commonwealth in relation to the governance arrangements of the Fund.\n\n (3) The persons undertaking the review must give the Minister a written report of the review. The report must not include information that is commercially sensitive.\n\n (4) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.\n\n22  Rules\n\n (1) The Minister may, by legislative instrument, make rules prescribing matters:\n\n (a) required or permitted by this Act to be prescribed by the rules; or\n\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n\n (2) To avoid doubt, the rules may not do the following:\n\n (a) create an offence or civil penalty;\n\n (b) provide powers of:\n\n (i) arrest or detention; or\n\n (ii) entry, search or seizure;\n\n (c) impose a tax;\n\n (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;\n\n (e) directly amend the text of this Act.\n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 23 March 2020\n\nSenate on 23 March 2020]\n\n(33/20)\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act implements its stated object (s3) by authorising Commonwealth participation in, and up to $100 million of funding for, a privately incorporated Australian Business Growth Fund (s10, s18). Its operational and constitutional constraints (not becoming a Commonwealth company, specified heads for application of funds, divestment duty) limit rather than expand scope beyond that object, so the practical scope aligns with the Act’s original purpose."},"complexity_factors":["Single‑company limit on exercise of investment powers (s10(3)) increases selection and structuring complexity.","Constitutional constraints requiring Commonwealth funds be applied only under specified heads (trade/commerce, Territories, nationhood, executive power) create legal compliance risk (s13(2)).","Obligation to divest if constitutional arrangements are unlikely or lapse imposes contingent exit planning (s13(4)).","Prohibition on the Fund becoming a Commonwealth company requires governance and ownership structuring to preserve private status (s14).","Appropriation capped at $100 million with a 2‑year expiry if unused limits fiscal flexibility and creates timing pressure (s18(1)–(2)).","Ministerial discretion to participate, contract and make payments concentrated decision authority in the Minister, with delegation permitted to senior public servants (s10, s11, s12, s19).","Rule‑making power exists but is expressly limited from creating offences, taxes or amending the Act (s22).","Mandatory review of the Act’s operation after three years requires data collection and reporting on market effects (s21).","Extra‑territorial application and Crown binding clauses broaden application scope and legal exposure (ss6–8).","Executive‑power preservation note clarifies the Act does not limit Commonwealth executive power, affecting interaction with other powers (s15)."],"plain_english_summary":"Mechanically, the Act authorises the Commonwealth—acting through the Minister—to form or acquire shares or debentures in a single Corporations Act company designated as the Australian Business Growth Fund and to enter related arrangements, while ensuring the Fund does not become a Commonwealth company. The Consolidated Revenue Fund is appropriated up to $100 million for these purposes, subject to a two‑year expiry if unused.\n\nThe Act’s stated object is to increase investment in small and medium Australian enterprises (s3). The Minister decides on participation, may delegate powers, and must ensure investments comply with specified constitutional heads (s13) or divest (s13(4))."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly scoped to its original purpose. The Act was always intended as a targeted, time-limited investment mechanism to support SME access to capital during the COVID-19 economic disruption. The $100 million cap, 2-year appropriation sunset clause, and mandatory 3-year review ensure the scheme cannot expand beyond its initial mandate without fresh parliamentary consideration. The constitutional limitations in section 13 further constrain the Fund's operations to federally-supported activities."},"complexity_factors":["Short statute: only 22 sections across 3 Parts","Minimal defined terms: only 6 definitions in section 5, most referencing external legislation (Corporations Act 2001, PGPA Act 2013)","Simple conditional logic: primarily straightforward prohibitions ('must not') and enabling provisions ('may')","Single cross-reference complexity: section 13 contains nested constitutional limitations requiring arrangements about Fund investment restrictions, with divestment obligations if those arrangements fail","No exceptions to exceptions: the Act avoids deeply nested provisos","Standard machinery provisions: appropriation, delegation, annual reporting, and review mechanisms follow typical legislative templates","Limited rule-making power: section 22 provides standard delegated legislative authority with explicit prohibitions on creating offences, taxes, or direct amendments"],"plain_english_summary":"**What this law does:**\n\nThis Act allows the Australian Government to invest up to $100 million in a new investment vehicle called the **Australian Business Growth Fund**. The Fund's purpose is to provide **equity capital** (ownership stakes, not loans) to small and medium-sized Australian businesses that need money to grow but struggle to access traditional bank loans or venture capital.\n\n**Who it affects:**\n\n- **Small and medium enterprises (SMEs)** — Australian businesses that can now access a new source of growth funding\n- **The Australian Business Growth Fund** — a company formed under corporations law that will manage the investments\n- **Other investors** — the Fund operates as a partnership between government and private sector banks/institutions\n- **The Minister** (currently the Treasurer or relevant minister) — who makes investment decisions on behalf of the Commonwealth\n\n**Key mechanics:**\n\n- The Minister can **buy shares or debentures** (a type of debt instrument) in the Fund, or help create the Fund company\n- The Commonwealth **cannot control the Fund** — it must remain a private company, not a \"Commonwealth company\" (government-owned corporation)\n- The Fund must use Commonwealth money only for investments that fit within **constitutional limits** — primarily trade and commerce across state borders, international trade, or territories\n- There's a **2-year use-it-or-lose-it clause** — if the $100 million isn't spent within 2 years, the funding expires\n- The Minister must **review the scheme after 3 years** to check if it's actually helping SMEs get capital\n\n**Why it matters:**\n\nThis was part of the **COVID-19 economic response** (hence the name), designed to keep credit flowing to businesses during the pandemic. It addresses a long-standing gap in Australian markets — the \"valley of death\" where businesses are too big for startup grants but too small for stock market listings. By co-investing with private banks, the government shares both the risk and the potential returns."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/australian-business-growth-fund-coronavirus-economic-response-package-act-2020","history":"/api/acts/australian-business-growth-fund-coronavirus-economic-response-package-act-2020/history","analysis":"/api/acts/australian-business-growth-fund-coronavirus-economic-response-package-act-2020/analysis","conflicts":"/api/acts/australian-business-growth-fund-coronavirus-economic-response-package-act-2020/conflicts","importantCases":"/api/acts/australian-business-growth-fund-coronavirus-economic-response-package-act-2020/important-cases","documents":"/api/acts/australian-business-growth-fund-coronavirus-economic-response-package-act-2020/documents"}}