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
