The Australian federal government has committed $100 million over five years for a fund providing "patient capital" to Australian small and medium businesses. 

The government first announced plans for the Australian Business Growth Fund late last year, but has now decided to stump up Commonwealth funding for the first five years of its existence. It hopes that banks and superannuation funds will get on board and contribute to the fund, helping it to grow to $1 billion over the next five years, with between 30 and 50 businesses with annual turnover of between $20 million and $50 million receiving funding each year. 

The fund will support existing small and medium businesses to expand by providing them with equity without forcing them to turn to further debt or giving away control of some of the company. 

It is being modeled on a similar fund in the UK that has focused on emerging, innovative sectors. 

The fund will be providing "patient capital", Mr Morrison said, with no focus on a quick return. 

The Australian Business Growth Fund will be regulated by APRA and be administered by an independent board and chair, as appointed by its shareholders.