billion fund
The National Reconstruction Fund (NRF)
has passed the Senate, paving the way for the establishment of a $15 billion fund that will diversify and transform Australia’s industry and economy.
The NRF will provide finance for projects that leverage Australia’s natural and competitive strengths and help to secure the country’s future prosperity.The NRF will provide finance to projects in priority areas, including renewables and low emissions technologies, medical science, transport, value-add in the agriculture, forestry and fisheries sectors, value-add in resources, defence capability, and enabling capabilities. The financing options available will include loans, equity investment, and guarantees.
The government has allocated $8 billion of the NRF’s $15 billion for specific areas, including up to $3 billion for renewables and low emissions technologies, $1.5 billion for medical manufacturing, $1 billion for value-adding in resources, $1 billion for critical technologies, $1 billion for advanced manufacturing, and $500 million for value-adding in agriculture, forestry, fisheries, food, and fibre.
The NRF will operate as an independent financier that operates commercially to deliver a positive rate of return. It will be governed by a board that makes independent investment decisions guided by an investment mandate. The government will work with industry to develop co-investment plans that identify high-level investment opportunities and broader reforms to support growth across priority areas.
The NRF is an important initiative that will help Australian industry move up the value chain and address supply chain vulnerabilities. For more information on how the NRF might be of benefit to your business, reach out to the team at Saving Point. We can help you understand the opportunities that the NRF presents and how you can take advantage of them to achieve your business goals.
