With Labor forming the next government of Australia, Prime Minister Anthony Albanese is expected to begin delivering on election promises, including a $15 billion National Reconstruction Fund.
The fund will be administered by an independent board with government setting its mandate to drive investment in key sectors.
Albanese says it’s the first step to rebuild Australia’s industrial base and boost sovereign manufacturing capability.
The $15 billion Fund will provide loans, guarantees and equity to support projects that create secure well-paid jobs, drive regional development, and invest in our national sovereign capability, broadening and diversifying Australia’s economy.
“We need to revive our ability to make world-class products and, in the process, create secure well-paid jobs for Australians,” Labor says on its website.
“Through the National Reconstruction Fund, Labor will partner with businesses to unlock further potential private investment of more than $30 billion. This investment will play to our strengths supporting new and emerging industries, transitioning existing industries to net zero emissions and by making it easier to commercialise innovation and technology.”
The initiative is broken down to the following elements:
- Powering Australia: up to $3 billion from Labor’s National Reconstruction Fund to invest in green metals (steel, alumina and aluminium); clean energy component manufacturing; hydrogen electrolysers and fuel switching; agricultural methane reduction and waste reduction.
- Medical Manufacturing: support for Australian medical manufacturing with a dedicated $1.5 billion Medical Manufacturing Fund, building on Labor’s Buy Australian Plan to work with industry to identify ways that government purchasing strategies can help build local medical manufacturing capability to create secure well-paid jobs.
- Value Adding in Resources: expand Australia’s mining science technology capability, create jobs and ensure a greater share of our raw materials are processed in Australia, through Labor’s $1 billion Value Adding in Resources Fund.
- Critical Technologies: An Albanese Labor Government will expand Australia’s critical technology capability, in areas like Artificial Intelligence, robotics and quantum computing by setting up a Critical Technologies Fund to deliver $1 billion in investment support through loans, equity and guarantees for businesses in critical technologies.
- Advanced Manufacturing: $1 billion in advanced manufacturing, as part of our commitment to create secure well-paid jobs and build a future made in Australia. Labor’s $1 billion investment will rebuild our industrial base creating new capabilities and opportunities to innovate in transport, defence, resources, agricultural and food processing, medical science, renewables and low emission technologies manufacturing.
- Agriculture, Forestry, Fisheries, Food and Fibre: $500m of funding within our National Reconstruction Fund for Agriculture, Forestry, Fisheries, Food and Fibre. This will encourage investment in value adding and growing exports, help diversify the sector and open up new possibilities for trade.