The Australian Government has launched a major initiative to revitalise the nation's industrial sector, with the National Reconstruction Fund (NRF) set to inject A$15 billion into key industries, aiming to foster job creation and enhance Australia's competitive edge in the global market.
The announcement, made by the Minister for Industry Ed Husic and the Finance Minister Katy Gallagher lays out a pathway to rebuilding and diversifying Australia's manufacturing capabilities.
“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 Gallagher said.
"We believe in a Future Made in Australia, and that’s what the National Reconstruction Fund will deliver.”
Seven target sectors
At the heart of this initiative is the National Reconstruction Fund Corporation’s Investment Mandate, a strategic blueprint designed to channel investments into seven critical sectors.
These include:
- renewables and low emission technologies;
- medical science;
- transport;
- agriculture, forestry and fisheries;
- resources;
- defence capabilities; and
- enabling technologies (quantum and AI, future tech)
The mandate reflects a concerted effort to align investment with national priorities, laying the groundwork for sustainable economic growth and technological advancement.
“The signing of this mandate is a significant milestone,” chair of the National Reconstruction Fund Corporation Martijn Wilder said.
“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.”
Commercial mandate
Crucially, the NRF Corporation, an independent entity governed by a board of experts from various sectors, is mandated to operate on a commercial basis.
This approach ensures rigorous due diligence in investment decisions, focusing on generating a sustainable return for taxpayers.
The mandate stipulates a target return of 2 to 3% above the five-year Australian Government bond rate over the medium to long term, balancing financial prudence with strategic investment.
The NRF board is empowered to make autonomous decisions, offering finance options such as debt and equity to Australian-based investments.
“Signing off on the investment mandate means the NRF can get cracking on rebuilding our manufacturing capabilities and supply chain resilience,” Minister Husic said.
“Making things here, shipping them everywhere.
“This moment comes in the same week as we officially start our $392 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.”