This proposal would establish a new fund to invest in key Australian industries, which may include manufacturing, advanced manufacturing, mining (excluding coal) and infrastructure. It would have the goal of improving sovereign capability in medical, crucial materials and defence industries.

The fund would be subject to a mandate to ensure returns of at least the 10-year Australian Government bond rate. It would primarily use loans but may also use alternative financing arrangements.

The fund would operate separately but in partnership with other Australian Government funds and would adopt a similar governance structure to the Clean Energy Finance Corporation (CEFC).

The funding made available through the fund would be:

• $10 billion over five years from 2022-23 ($2 billion per year); and
• an additional $5 billion over the next two years from 2027-28 ($2.5 billion per year).

The available funding would be drawn down as investments are made, with any repaid capital being reinvested. Earnings from the fund would be available for the Australian Government to draw on.

Departmental funding would be drawn from the overall amount allocated to the fund. The fund would commence operation on 1 July 2022 and would be ongoing.

The fund’s initial investments would include:

• $3 billion for Powering Australia
• $1.5 billion for a Medical Manufacturing Fund
• $1 billion for a Value Adding in Resources Fund
• $1 billion for a Critical Technologies Fund
• $1 billion for advanced manufacturing
• $500 million for Agriculture, Fisheries, Food and Fibre.