Former Tassie leader heads business fund

Former Tasmanian premier Will Hodgman has found a new job three months after leaving the leadership, with the federal government making him the inaugural chair of the $540 million business growth fund.

The fund is designed to give small and medium enterprises access to so-called patient capital investors.

Taxpayers have tipped $100 million into the fund, with the big four banks each matching that contribution and HSBC and Macquarie Group adding $20 million apiece.

The Liberal leader stunned observers when he resigned as Tasmanian premier in January, after six years in the job, and two years out from an election.

"His leadership and experience makes him the ideal candidate for the chair of the BGF," Treasurer Josh Frydenberg said on Wednesday.

Legislation creating the fund is yet to pass parliament.