Efic reforms create and protect against Australian jobs

Media release by The Hon Steven Ciobo MP - Minister for Trade, Tourism and Investment

The Export Finance and Insurance Corporation (Efic) Amendment (Support for Commonwealth Entities) Bill 2016 has passed the Parliament with bipartisan support.

These amendments will help grow Australia’s exports by improving Efic’s support for Australian small and medium-sized enterprises (SMEs).

Importantly the changes enshrine in legislation a requirement there is a net increase in Australian jobs within a business applying for Efic financing for overseas direct investment.

While it was already Efic policy that applicants for its overseas direct investment financing product must not use it to fund the outsourcing of jobs, the legislation provides further safeguards and puts these requirements into law.

The amendments help Efic keep pace with Australia’s changing exports by enabling Efic to lend directly to a broader range of SMEs, including tourism operators, online businesses, exporters of intellectual property and other related rights, and businesses engaged in overseas direct investment.

Previously, Efic could only provide a guarantee for a loan from another bank for these types of companies. Now Efic can lend directly, saving businesses time and money.

In the last four years, Efic provided almost 300 SME exporters with more than $500 million in support.

The Bill also unlocks Efic’s potential to provide its specialist financial services to Commonwealth entities and companies on a fee-for-service basis, subject to ministerial approval.

Efic is Australia’s official export credit agency. These reforms will ensure Efic continues to drive Australian jobs growth by promoting increased trade, tourism and investment.

Media enquiries