Australia’s Future Fund to Prioritize Housing, Energy, and Infrastructure Investments

The Albanese government updates the $230 billion fund’s mandate to align with national priorities while maintaining its focus on financial returns.

The Future Fund, established in 2006 to cover public servant pensions, will now consider investments in housing, renewable energy, and infrastructure projects aligned with national priorities.
Treasurer Jim Chalmers emphasized that the fund’s primary goal of achieving 4-5% returns above inflation remains unchanged, with no alterations to its risk profile.
Critics, including former treasurer Peter Costello, argue the changes risk politicizing the fund and undermining its independence, with the Coalition pledging to reverse the mandate if elected.
Supporters, including the fund’s chair Greg Combet, highlight that the new focus aligns with existing investment strategies and will not compromise financial performance.
The government has committed to deferring any withdrawals from the fund until at least 2032-33, allowing it to grow to an estimated $380 billion.