According to budget papers, the government will look to relax the 15% ownership for what it terms "innovative new entrants". This will be done either at ministerial discretion or through legislation.
Authorised deposit-taking bodies with less than $50 million in capital will be allowed to call themselves banks.
On the licensing front, the government said it welcomed the review of prudential licensing arrangements by APRA.
Another measure is to give proprietary companies access to crowd-sourced equity funding, with an unlimited number of such shareholders.
They will be protected by the higher governance and reporting obligations that CSEF proprietary companies must meet.
"These obligations include: a minimum of two directors; financial reporting in accordance with accounting standards; audit requirements; restrictions on related party transactions; and minimum shareholder rights to participate in exit events," according to the budget papers.
Legislation is planned to let companies test new financial products and services without a licence including "providing more holistic financial advice, issuing consumer credit, offering short-term deposit or payment products, and operating a CSEF intermediary".