$15 billion National Reconstruction Fund passes Senate

The Australian Government’s $15 billion National Reconstruction Fund (NRF) will be established in law after the National Reconstruction Fund Corporation Bill was approved by the country’s Senate. The NRF was first announced in the Interim Budget on 25 October 2022.

Minister for Industry and Science Ed Husic welcomed the passage of the National Reconstruction Fund Corporation Bill through the Senate.

“The Government’s $15 billion National Reconstruction Fund (NRF) is one of the largest peacetime investments in Australian manufacturing capability,” Minister Husic said. “The most successful modern economies are built on strong, advanced manufacturing capability. The NRF will help deliver this for Australia.”

The NRF will provide finance for projects in priority areas to leverage Australia’s natural and competitive strengths and to diversify and transform Australia’s industry and economy. By establishing the NRF the government aims to help secure Australia’s future prosperity and drive sustainable economic growth.

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 and address supply chain vulnerabilities.

The NRF will diversify and transform Australia’s industry and economy through targeted investments in the following seven priority areas:

• renewables and low emissions technologies
• medical science
• transport
• value-add in the agriculture, forestry and fisheries sectors
• value-add in resources
• defence capability
• enabling capabilities.

“The NRF shows the Government is serious about investing our human capital to keep Australian smarts on shore,” said Minister Husic.

The NRF will be administered by an independent board making independent investment decisions. It is modelled on Australia’s Clean Energy Finance Corporation.

Senate amendments will now return to the House of Representatives.