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.