The National Reconstruction Fund (NRF) represents one of the Albanese Labor Government's signature economic initiatives, establishing a $15 billion investment vehicle to transform Australia's industrial landscape. Legislated in March 2023 and operational since November 2023, the NRF operates as an independent corporation that provides loans, equity investments, and guarantees to Australian-based businesses across seven priority areas: renewables and low emission technologies, medical science, transport, value-adding in agriculture, forestry and fisheries, value-adding in resources, defence capabilities, and enabling technologies.

Unlike traditional government grants, the NRF operates on commercial principles, targeting returns of 2-3% above the five-year Australian Government bond rate over the medium to long term. The fund is prohibited from investing in coal or natural gas extraction, pipeline infrastructure, or native forest logging. In November 2024, the fund announced its first investment of $40 million in Queensland-based Russell Mineral Equipment as part of a broader $100 million co-investment fund with Resource Capital Funds, supporting Australian manufacturing and ensuring the business remains Australian-owned.

$15 billion independent investment corporation operating across seven priority areas

Commercial focus with targeted returns of 2-3% above government bond rates

Creates secure jobs while strengthening Australia's sovereign manufacturing capability

Any revenue generated must be reinvested back into the scheme

[1] https://www.legislation.gov.au/F2023L00716/latest/text

[2] https://www.pbo.gov.au/sites/default/files/2023-03/ECR157_National%20Reconstruction%20Fund%20-%20Australian%20Labor%20Party.pdf

[3] https://www.abc.net.au/news/2024-11-19/national-reconstruction-fund-announces-first-investment/104616642

[4] https://alp.org.au/news/15bn-national-reconstruction-fund-open-for-business/

[5] https://www.nrf.gov.au/what-we-do