National Reconstruction Fund: Open For Business
In a joint media release on November 30th 2023, the Minister for Finance, the Hon Katy Gallagher and the Minister for Industry, Ed Husic announced the $15 billion National Reconstruction Fund is open for business investing in growing Australia’s industrial capabilities to create the secure, well-paid jobs of the future.
“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.
Senator Katy Gallagher, Minister for Finance
Originally announced back in October 2022 the NRF will provide finance for projects that diversify and transform Australia’s industry and economy. By establishing the NRF the government is helping to secure Australia’s future prosperity and driving sustainable economic growth.
A strong and diverse economy underpins the government’s commitment to creating more sustainable, high-value jobs for all Australians. The NRF will provide a range of finance options including:
loans
equity investment
guarantees.
This will ultimately help Australian industry move up the value chain to:
become more productive
take advantage of opportunities in a net zero economy
address supply chain vulnerabilities.
Priority funding areas
The NRF will diversify and transform Australia’s industry and economy through targeted investments in the following priority areas:
renewables and low emissions technologies
medical science
transport
value-add in the agriculture, forestry and fisheries sectors
value-add in resources
defense capability
enabling capabilities.
The NRF will be an independent financier that operates commercially to deliver a positive rate of return. It will be governed by a board who will make independent investment decisions guided by an investment mandate. The NRF will finance projects that align with the 7 priority areas to leverage Australia’s natural and competitive strengths.
The Investment Mandate published by the Minister for Industry and the Finance Minister 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; defense 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 NRF Corporation is an independent body, governed by a Board with significant expertise in a range of sectors.
For more information about the NRF you can visit their official website.
