FinTech Australia has submitted its 2026–27 Pre-Budget Submission to the Federal Government, calling for sweeping reforms to government procurement and funding mechanisms that would better support fintech startups and small to medium businesses. The industry body is urging policymakers to broaden procurement pipelines and recalibrate venture capital tax concessions, superannuation settings, and the Research and Development Tax Incentive to create more predictable funding pathways for emerging financial technology companies.
The submission argues that current government procurement processes disproportionately favor larger established companies, effectively locking out smaller fintechs that could deliver innovative solutions to federal financial challenges. According to FinTech Australia CEO Rehan D’Almeida, Australian fintechs possess the capabilities to solve many of the government’s key financial challenges while simultaneously growing their businesses and creating employment opportunities.
Government Procurement Barriers Lock Out Fintech Startups
D’Almeida explained that extensive government tender processes are almost designed for larger players, preventing smaller and emerging companies from participating. He noted that securing government contracts would have a compounding effect for fintechs, providing credibility that helps them win more local customers and scale more quickly. However, the same contracts are often awarded to large companies simply because they have the resources to navigate complex procurement requirements.
The organization contends that more SME-friendly procurement settings would lower barriers to entry and improve cash flow certainty for high-growth technology businesses. These changes would enable fintech companies to compete more effectively for government work and demonstrate their capabilities on significant projects.
Funding Crisis Hits Early-Stage Fintech Companies
The call for enhanced funding support comes as recent Cut Through Venture data revealed a 17 percent decline in the number of funding deals last year, despite an increase in total capital invested. Early-stage fintechs, which represent the next generation of export-ready Australian scale-ups, are finding it increasingly difficult to access capital on reasonable terms.
D’Almeida highlighted what he described as a persistent two-speed fintech ecosystem, where existing funds and venture capital largely fuel established players while leaving next-generation unicorns behind. He emphasized that targeted federal government reform in this space could make a tangible difference to both the fintech ecosystem and Australia’s broader economic outcomes.
Additional Reform Priorities for Financial Technology Sector
Beyond procurement and funding reforms, the submission outlines several other key focus areas that represent long-standing pressure points in the ecosystem. These include continued support for the Consumer Data Right and core digital infrastructure, alongside scam and cyber initiatives such as the National Anti-Scam Centre, to ensure consumers and small businesses can safely benefit from data-driven services.
Additionally, FinTech Australia is advocating for strengthened national AI capability and support for emerging technologies, including investment in AI testing and assurance. The organization recommends improving tools such as the Enhanced Regulatory Sandbox to help early-stage fintechs responsibly trial new products in controlled environments.
The submission also calls for smarter, better-resourced regulation, ensuring bodies such as ASIC, APRA, ACCC, and AUSTRAC can manage expanding mandates while modernizing rules to support home ownership and digital lending. Meanwhile, boosting international competitiveness through coordinated export and trade support, stronger collaboration via FinTech Bridge arrangements, and recognizing fintech as an enabling capability within programs such as the National Reconstruction Fund are also priorities.
In contrast to previous years, D’Almeida emphasized that the stakes are higher with this Federal Budget. He stated that Australia’s fintech industry is well placed to deliver on the economic outcomes the government is seeking, including boosting productivity, creating jobs, and ultimately raising living standards.
The Federal Government is expected to consider these recommendations as it prepares the 2026–27 Budget, though no timeline for formal response or implementation has been announced. D’Almeida concluded that with the right policy settings, Australia can supercharge fintech growth and realize its economic impact where it is most needed.