Legislation
The National Reconstruction Fund Corporation (NRFC) was established on 18 September 2023 by the National Reconstruction Fund Corporation Act 2023 (NRFC Act). The NRFC is a corporate Commonwealth entity for the purpose of the Public Governance, Performance and Accountability Act 2013.
The NRFC Act sets out the Corporation’s purpose and functions and establishes arrangements for the Board, Chief Executive Officer and staff.
Purpose and Functions
The NRFC was established to diversify and transform Australia’s industry and economy to secure future prosperity and drive sustainable economic growth.
The NRFC’s investment function, as described in the NRFC Act, is to provide finance in the form of debt, equity and guarantees for projects in the priority areas of the Australian economy.
Responsible Ministers
The Minister for Industry and Science and the Minister for Finance are the responsible ministers under the NRFC Act. The responsible ministers appoint members to the NRFC Board and issue directions about the performance of the NRFC’s investment functions and/or the exercise of the NRFC’s investment powers.
Priority Areas Declaration
The responsible ministers may issue a Priority Areas Declaration (Declaration), declaring that each area of the Australian economy specified in the Declaration, is a priority area of the Australian economy for the purposes of the NRFC Act. The most recent Declaration came into effect on 18 September 2023. The Declaration declares the following as priority areas of the Australian economy:
- renewables and low emission technologies
- medical science
- transport
- value-add in the agriculture, forestry and fisheries
- value-add in resources
- defence capability
- enabling capabilities.
The NRFC Declaration is a legislative instrument, which is subject to disallowance. Further information on the Declaration can be found in the Explanatory Statement.
Investment Mandate
The responsible ministers must provide directions in relation to the performance of the NRFC’s investment function by issuing an Investment Mandate. The Investment Mandate came into effect on 30 November 2023. The Investment Mandate contains matters set out in the NRFC Act, which include but are not limited to:
- clear expectations for the NRFC
- a benchmark rate of return and risk
- directions to operate on a commercial and self-sufficient basis.
The NRFC Investment Mandate is a legislative instrument, which is not subject to disallowance. Further information on the Investment Mandate can be found in the Explanatory Statement.
Board appointment and membership
The NRFC Board consists of the Chair and at least 6, and no more than 8, other members who are appointed by the responsible ministers. Members are appointed on a part-time basis for a maximum term of 4 years, with the possibility of reappointment. Section 19 of the NRFC Act specifies the appointment criteria for the Board.
Reviews
Future reviews
A Statutory Review on the operation of the NRFC Act must be completed by 31 December 2026.
Further information
For queries regarding the NRFC’s investments, or if you are seeking funding from the NRFC, please refer to the National Reconstruction Fund Corporation website.
Queries on policy matters regarding the NRFC should be directed to the NRF.Policy@industry.gov.au which has the primary portfolio responsibility for the NRFC.
