The Federal Government has shifted the investment focus of the nation’s multi-billion-dollar sovereign wealth fund.
Treasurer Jim Chalmers said a new Investment Mandate would require the $230 billion Future Fund to consider Australia’s current national priorities in its investment decisions.
Treasurer Chalmers said those properties were increasing the supply of residential housing, supporting the energy transition to net zero and delivering improved infrastructure to enhance economic resilience and security.
“The Australian economy faces major structural shifts including from the global net zero transformation, technological and demographic change, and global fragmentation,” he said.
“The Future Fund has made clear it can play a prominent role in capitalising on these economic opportunities and supporting Australia’s prosperity.”
Treasurer Chalmers has also confirmed the fund’s enduring role is strengthening the Commonwealth’s long term financial position and covering unfunded superannuation liabilities.
“To support this, the Government won’t start any drawdowns from the fund until at least 2032–33, providing the fund the certainty it needs to continue to build its portfolio.”
He said by 2032–33, the Future Fund was expected to grow to $380 billion.
Treasurer Chalmers said the Government was modernising the fund by elevating its status as an enduring national asset and making it an ongoing feature of Australia’s economy.
He said issuing the new Investment Mandate would maximise the fund’s role in a changing economy.
