Simon Birmingham on ABC Radio Sydney with Thomas Oriti discussing banking support for businesses

E&OE
Radio Interview
ABC Radio Sydney
20 April 2026.

Topics: Banking support; Interest free loans for business; Industry groups call for red tape reduction; Work from home arrangements

Thomas Oriti (Host): We’re hearing today that Australian banks are supporting the roll out of zero interest loans with banks to administer them to businesses in identified priority sectors with an annual turnover of $100 million or less, seeking a loan of up to $5 million. Now, before we get into this, I’ve had a text from Terry pointing out Tom, ‘Paul Keating introduced compulsory super in 1993 not sure what that has to do with 1976’, I agree. I think the point that that listener was making was it didn’t exist back in 1976 and it does now, after it was introduced in 1993 but a very important point to make there. But look back to what’s happening now. What’s happening is a bit of a mouthful with these loans, but applications are open now to find out about this and other support that might be available at the moment, the CEO of the Australian Banking Association, Simon Birmingham, is with us now. Simon, good afternoon.

Simon Birmingham: Hello, Thomas. Good to speak with you again.

Thomas Oriti: Yes, likewise. Thanks for being back on the program. So, these zero interest loans, applications are open now. How will they work?

Simon Birmingham: That’s right. So, these are loans that were a government announcement, but the government has worked with Australia’s major banks and some of our biggest regional banks as well to ensure that there is an ease of process and delivery available for businesses, particularly small and medium sized businesses. So as you indicated, businesses with a turnover of less than $100 million who seek an interest free loan of up to $5 million can do so by contacting now their existing bank and having discussions with them. This is critically targeted to businesses in the transport, logistics, manufacturing, type sectors, those who can demonstrate and are feeling the impacts of the current fuel crisis, and whilst most businesses on banking analysis right now are working the way their way through these pressures – and we’re seeing relatively little call for additional hardship assistance – the reality is, some of course, will be feeling increased pressures from prices and availability and supply chain pressures, and so this is an opportunity where banks are working with the government to provide them with that support.

Thomas Oriti: How long will the zero-interest period last let’s say they were to get a loan and be approved for it. What happens then?

Simon Birmingham: So initially, this is time limited period up to a couple of years, two years that the zero-interest part operates for. And of course, the expectation is that the principal is repaid in full and normal type terms and conditions apply. So, it’s not in any way free money. And it’s also importantly, though not the only support that is available. Not every business is eligible for this. Not every sector in the way the government has structured it can access it. And so as with our message to consumers, it’s also the same message to businesses, if you’re facing pressures at present, then it’s far better to go and have a discussion with your bank sooner than later. There are a range of different things in terms of cash flow support, loan and debt restructuring arrangements that can be provided, and there’s plenty of information available through the Australian Banking Associations’ Financial Assistance Hub, where people can find links straight through to the relevant part of banks to be able to talk to, to get that assistance.

Thomas Oriti: Yeah, I do want to ask you that, because obviously, with these loans, we’re talking about identified priority sectors. So, as you point out, freight, logistics, fuel, fertiliser, for example. But what about individual customers? They’re facing a lot at the moment, Simon Birmingham, increasingly higher loan repayments, cost of living, pressures. What are the banks doing for them if someone, for example, is facing financial hardship, is it right and proper at the moment for a bank during a time like this to waive fees?

Simon Birmingham: So if someone is facing financial hardship, first thing right now, or any time is to be quick about talking to your bank. The earlier you talk to your bank, the easier it will be for them to be able to work with you on solutions that can hopefully help somebody through those circumstances. And there are opportunities to potentially defer interest payments, to stretch out the length of loans, that can adjust payment requirements on a month to month basis, different changes that can be made, restructuring of course, the type of debt that people have is often a smart thing, where people are in hardship circumstances and the banks have dedicated, skilled hardship teams who are there to support people who are really doing it tough and facing those pressures. I know plenty of households at present looking as to how to make that extra dollar go further. Overwhelmingly, people are managing that, making those adjustments coming in. Of these pressures, we saw that around 80 per cent of Australians with a mortgage was some way ahead in their mortgage repayments. So had a little bit of a buffer. The country had in terms of deposits, record levels of deposits that had grown by about 8% over the last year that households were holding on to. So, there are buffers there that many people have worked up, but that, of course, doesn’t apply to everybody, and those who are in the tough circumstances, there are different things that your bank can and should be able to do for you.

Thomas Oriti: I mean, shouldpeople be going down the path of things like temporary overdrafts or emergency credit limit increases at a time like this.

Simon Birmingham: It really is a horses for courses, set of circumstances. Every crisis is different. This isn’t COVID. We don’t have mass shutdowns of businesses or people being laid off in mass ways. This is very different. Will affect, of course, different businesses in quite different ways and circumstances for each household will be very different with of course, those things like savings levels and so on that I outlined before. Which is why, whilst banks had been supportive of this government loan program as one tool, we also firmly believe that it’s far better at present to be responding through the range of different tools that that banks and customers can have available to themselves to undertake that restructuring, to look at different hardship options, but also to make sure it’s done in ways that don’t make a difficult situation worse for anybody, and ensure that that people are being realistic about what is and isn’t possible in terms of their personal circumstances.

Thomas Oriti: Simon Birmingham is with us, the head of the Australian Banking Association. This is 702 ABC Sydney Drive. It’s a quarter to six. Thomas Oriti with you. Simon while we have you there, I note nearly 30 groups representing small, medium and large businesses and universities, they’re calling on all governments to cut regulatory costs by 25% and I guess the aim here is to help consumers and businesses amid the surging costs caused by the war in the Middle East, your association is part of this alliance of industry associations. What would you like to see happen?

Simon Birmingham: We absolutely are and banks are perhaps a little different in that, of course, we fully expect to be an industry sector that is appropriately regulated to ensure the safety and security of people’s money and the nation’s financial system. We want that to be efficient in our case, but we also want to make sure that all of those businesses, who we bank and who, who we provide financial support to, are able to be as strong as possible. And I think everybody knows in Australia, there’s too much duplication of regulation between state and local governments and federal governments. There’s too much overlap, that too many small businesses spend too much of their time filling out forms, making applications, and that there is a lot of efficiency that could be had. To his credit, the Treasurer put, after the election, productivity front and centre in terms of what he says is a priority, and coming into this budget, he said there’s going to be a real focus on that productivity agenda and on restraining cost of government spending. That’s really welcome. And what we’re looking to see as businesses, is for Australia to have ambition to be much more competitive. And that’s why we’ve backed this call for a 25 per cent cut in the impact of red tape across the board, not about cutting standards or safety, but about making sure the way governments go about these things is more efficient and puts less burden, particularly on those small and medium business

Thomas Oriti: Regulatory costs as you say. I just want to ask you about working from home finally, Simon Birmingham, because the Finance Sector Union has come out saying, well why have banks overwhelmingly rejected requests from workers to temporarily suspend in office mandates instead insisting that employees commute to work during a fuel crisis? Is that happening?

Simon Birmingham: Well, banks have very flexible workplace arrangements in place already. If I just take the big four banks that most people focus on for their head office staff, two of them simply require an average of 50% office attendance spread over the course of around a month. The other two require their full-time employees to be in the office around two to three days per week. So essentially, in all cases, they’re saying attend the office about half the time, but doesn’t have to be any more than that. And that there’s added flexibility in personal circumstances for people to talk to their workplace managers about if they need any more. And that attendance has been gradually brought back, but in a much more flexible way post COVID than it was pre-COVID. And it is still important to have people come in to be able to collaborate, connect, maintain efficiency and operational effectiveness. And I think it’s also important to understand that for many of your listeners, be they frontline bank staff working in branches or be they working in schools or hospitals or elsewhere across the country, work from home is not an option for them at all. So, this is a part of the workforce where, yes, that flexibility is important, but we also have to be conscious of not making a challenging environment even worse for the CBDs across Australia, who actually have come back from COVID and rely on people being able to be in those cities going to work to keep the many small businesses around those head offices vibrant and profitable as well.

Thomas Oriti: Simon, that’s great to have you the program. Thank you very much for joining us.

Simon Birmingham: Thanks, my pleasure.

Ends