Crowdfunding bill passes lower house

Startups and small businesses will be able to raise money from mum-and-dad investors under new crowdfunding legislation that heads to the Senate.

Unlisted companies with turnovers of less than $5 million will be able to raise up to $5 million a year by issuing shares to investors, under a bill that passed the House of Representatives without objection on Wednesday.

Currently, only wealthy investors with a minimum of $2.5 million in assets could participate in equity crowdfunding.