The $230 billion Future Fund was created to stop a black hole in the federal budget. It’s now been tasked with investing in housing, energy and infrastructure.
The nation’s $230 billion Future Fund will sink taxpayers’ money into building residential housing, renewable energy projects and cybersecurity infrastructure under the first major overhaul to its investment mandate since it was established.
The fund, which over the past 12 months made $24.4 billion, or 11.9 per cent, on its holdings, has operated under a broad mandate to deliver returns at least 4-5 per cent above the inflation rate. Chalmers, who installed former Rudd and Gillard government minister Greg Combet as Future Fund chairman this year, said he was committed to its independence and commercial focus.But the change would mean where projects offered similar returns, the fund would favour investments that delivered on national priorities.
“The priority areas are aligned with the Future Fund’s thinking as set out in its position papers and consistent with its investment focus on seeking more local currency exposure and protection against sustained higher inflation,” he said. Opposition finance spokesperson Jane Hume said while the Coalition had yet to see the full details of the proposal, it would be worried by any changes that affected the fund’s independence.“The Albanese government must not undermine the Future Fund’s independence by seeking to direct where and how it can invest simply to cover up its policy failures,” she said.
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