Private companies to access crowd funding

Private companies will soon be able to crowd-source money without going public after draft laws cleared parliament.

Proprietary companies with less than $25 million in assets and turnover will be able to raise up to $5 million in any 12-month period through crowd-funding platforms.

"This bill's introduction will enable proprietary companies to obtain the capital they need to turn good ideas into commercial successes, while providing Australian investors with a larger pool of choice," assistant minister for treasury and finance Zed Seselja told parliament on Wednesday.