Govt opens up crowd-funding to startups

New draft laws will allow businesses with assets and turnovers less than $25 million to crowd-source funds up to $5 million a year.

Start-ups and small businesses will be able to raise money through crowd-funding under new government measures.

Legislation introduced to federal parliament on Thursday allows unlisted public companies with less than $25 million in assets and turnovers to raise $5 million in funds over a year.

"The framework will enable Australia's innovative early-stage businesses to obtain the capital they need to turn good ideas into commercial successes and the jobs that will follow," Treasurer Scott Morrison said.