The Times Australia
The Times World News

.

Australia’s $230 billion Future Fund encouraged to invest in housing, energy transition, infrastructure

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra



The Albanese government has rewritten the mandate of the Future Fund – the nation’s sovereign wealth fund – to urge it to direct investment into the “national priorities” of housing, the energy transition and infrastructure, where the risk and returns are acceptable.

Treasurer Jim Chalmers and Finance Minister Katy Gallagher said a new “investment mandate” and “statement of expectations” would modernise, refresh and renew the fund so it played “an enduring and prominent role” in the economy.

The ministers said the Australian economy faced big structural shifts coming from the global net zero transformation as well as technological and demographic changes and global fragmentation.

The $230 billion fund, which is independent in its investment decisions, is headed by former Labor minister Greg Combet.

The new investment mandate “will require the fund to consider Australia’s national priorities in its investment decisions, where possible, appropriate and consistent with strong returns”.

These priorities are:

  • boosting the housing supply

  • supporting Australia’s energy transition

  • delivering improved infrastructure including economic resilience and security infrastructure

The government stresses the new mandate does not mean the fund would be making riskier or less profitable investments.

To provide certainty to the fund, the government says it would not start any draw-dwns until at least 2032-33. By then, the fund is expected to reach a worth of $380 billion, from its present $230 billion.

“The government remains committed to the Fund’s independence and commercial focus,” the ministers said.

“Its primary objective will continue to be to maximise returns, the benchmark return rate will remain at between 4% and 5% above CPI per annum over the long term, and there will be no change to the expected risk profile.

"The Fund will provide the same strong returns to the government’s balance sheet while supporting national priorities where it can.”

No legislation is needed for the changes.

The Future Fund said in a statement that the government’s announcement was an endorsement of its work over 18 years to deliver a “demanding investment mandate of CPI+ 4-5% a year over the long term”.

It said delivering this investment target remained the fund’s focus under the new investment mandate. The fund’s Board of Guardians “will continue to make investment decisions independent of the government with the priority of generating commercial returns”.

The fund said the priorities it had now been given aligned with its thinking.

It also noted various investments it presently has in infrastructure and the energy transition. It plans to appoint an executive director, energy transition, to help with efforts in this area.

The government on Thursday will introduce its legislation to ban minors under 16 from accessing social media, with companies facing fines of up to $50 million for breaches.

Under the legislation, the onus will be on the plaforms, not the parents or children, who will not face penalties.

The penalties of up to $50 million will be for companies that systematically breach the law as well as for violations of enforceable industry codes and standards.

The bill also allows the minister to exclude specific classes of services that support the health and benefit of children.

It contains privacy provisions including that platforms ring-fence and destroy any information collected.

Read more https://theconversation.com/australias-230-billion-future-fund-encouraged-to-invest-in-housing-energy-transition-infrastructure-244169

Times Magazine

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Times Features

Tricia Paoluccio designer to the stars

The Case for Nuturing Creativity in the Classroom, and in our Lives I am an actress and an artist who has had the privilege of sharing my work across many countries, touring my ...

Duke of Dural to Get Rooftop Bar as New Owners Invest in Venue Upgrade

The Duke of Dural, in Sydney’s north-west, is set for a major uplift under new ownership, following its acquisition by hospitality group Good Beer Company this week. Led by resp...

Prefab’s Second Life: Why Australia’s Backyard Boom Needs a Circular Makeover

The humble granny flat is being reimagined not just as a fix for housing shortages, but as a cornerstone of circular, factory-built architecture. But are our systems ready to s...

Melbourne’s Burglary Boom: Break-Ins Surge Nearly 25%

Victorian homeowners are being warned to act now, as rising break-ins and falling arrest rates paint a worrying picture for suburban safety. Melbourne residents are facing an ...

Exploring the Curriculum at a Modern Junior School in Melbourne

Key Highlights The curriculum at junior schools emphasises whole-person development, catering to children’s physical, emotional, and intellectual needs. It ensures early year...

Distressed by all the bad news? Here’s how to stay informed but still look after yourself

If you’re feeling like the news is particularly bad at the moment, you’re not alone. But many of us can’t look away – and don’t want to. Engaging with news can help us make ...