$15bn National Reconstruction Fund open for business

Joint media release with the Minister for Finance, the Hon Katy Gallagher

Today, the $15 billion National Reconstruction Fund can begin investing in growing Australia’s industrial capabilities to create the secure, well-paid jobs of the future.

The Minister for Industry, Ed Husic, and the Finance Minister, Katy Gallagher, have published the National Reconstruction Fund Corporation’s Investment Mandate, unlocking billions of dollars in investment finance to rebuild Australia’s competitiveness across the manufacturing value chain.

The Investment Mandate sets out clear expectations for the NRF Corporation, including areas for investment across seven key priorities (renewables and low emission technologies; medical science; transport; value-add in agriculture, forestry and fisheries; value-add in resources; defence capabilities and enabling technologies).

It also directs the NRF Corporation to operate on a commercial, self-sufficient basis, including due diligence on investment decisions and the expectation of a return for the taxpayer.

The mandate requires the Corporation to target a rate of return of between 2 and 3 per cent above the five-year Australian Government bond rate over the medium to long term.

The NRF Corporation is an independent body, governed by a Board with significant expertise in a range of sectors.

The NRF Board will make independent decisions to provide finance, including debt and equity, to Australian-based investments in seven priority areas of the Australian economy.

To read the investment mandate, visit https://www.legislation.gov.au/Details/F2023L01564. For more information on the National Reconstruction Fund, visit: https://www.nrf.gov.au/.

Quotes attributable to Senator Katy Gallagher, Minister for Finance:

“This is an important day, after a decade of neglect, we’re rebuilding manufacturing in Australia, and creating well paid, secure jobs for workers across the country.

"We believe in a Future Made in Australia, and that’s what the National Reconstruction Fund will deliver.”

Quotes attributable to the Hon Ed Husic, Minister for Industry and Science:

“Signing off on the investment mandate means the NRF can get cracking on rebuilding our manufacturing capabilities and supply chain resilience.

“Making things here, shipping them everywhere.

“This moment comes in the same week as we officially start our $392 million Industry Growth Program to help scale up small businesses.

“As a government, we’ve said want to deliver a Future Made in Australia.

“And a country that makes things makes a lot of great jobs in our suburbs and our regions.”

Quotes attributable to Martijn Wilder, Chair of the National Reconstruction Fund Corporation:

“The signing of this mandate is a significant milestone.

“The mandate provides the flexibility for the NRF Corporation to drive investment across the seven priority areas to transform the Australian economy, in line with the Government’s commitment.

“It will also see the NRF Corporation work closely across government with other critical agencies such as the Net Zero Economy Agency, the CEFC and others to maximise our impact.”