Our funds

The Future Fund was established in 2006 to strengthen the Australian Government’s long-term financial position. 

From 1 July 2017 the Fund’s Investment Mandate is to achieve an average annual return of at least the Consumer Price Index plus 4% to 5% per annum over the long term, with an acceptable but not excessive level of risk. 

Prior to this the Fund’s objective was Consumer Price Index plus 4.5% to 5.5% per annum. The reduction in the Mandate reflects changed long-term global investment market conditions and outlook.

The Fund has received contributions from a combination of budget surpluses, proceeds from the sale of the government's holding of Telstra and the transfer of remaining Telstra shares.

In accordance with the Future Fund Act 2006, from 2020 funds can be withdrawn from it to cover the annual unfunded Commonwealth superannuation liabilities.

However, in 2017 the Government announced it would not make withdrawals from the Fund in 2020 and indicated its inclination to allow the Fund to grow until at least 2026-27. Drawing down later on the Fund is projected to strengthen the Government’s financial position over the long term.

The Commonwealth’s unfunded liabilities are currently being paid out of consolidated revenue.  By helping to meet these liabilities, the Future Fund will ease pressure on the Government’s budget at a time when an ageing population is likely to place significant pressure on its finances.

Further information regarding the Future Fund is also available on the Department of Finance website.

The Medical Research Future Fund was established in 2015 and will improve the health and wellbeing of Australians by providing grants of financial assistance to support medical research and medical innovation.

The first contribution to the Fund was made on 22 September 2015 in the form of a transfer of A$1.010bn from the former Health and Hospitals Fund with a further transfer from government of A$2.139bn on 1 December 2015.

The Fund’s Investment Mandate is to achieve at least the Reserve Bank of Australia Cash Rate target plus 1.5 to 2.0 per cent per annum, net of investment fees, over a rolling 10 year term.

Payments from the Medical Research Future Fund for particular projects and initiatives are determined by the Australian Government in accordance with the Medical Research Future Fund Act 2015.

Further information about the Medical Research Future Fund is also available on the Department of Finance website.

The Aboriginal and Torres Strait Islander Land and Sea Future Fund (ATSILS Fund) was established in February 2019 to enhance the Commonwealth’s ability to make payments to the Indigenous Land Corporation.

The ATSILS Fund was established with a capital contribution of $2bn transferred from the Aboriginal and Torres Strait Islander Land Account.

The Fund's Investment Mandate requires the Board to target an average return, net of costs, of at least the Consumer Price Index plus 2.0% to 3.0% per annum over the long term while taking an acceptable but not excessive level of risk. 

Measurement of performance against the Investment Mandate commenced on 1 October 2019.

Payments from the ATSILS Fund will be managed in line with the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018.

Further information regarding the ATSILS Fund is also available on the Department of Finance website.

The Future Drought Fund was established in 2019 to support initiatives that enhance the drought resilience of Australian farms and communities.

The Future Drought Fund was established with a capital contribution of $3.9bn, transferred from the Building Australia Fund which was closed on 1 September 2019.

The Investment Mandate for the Future Drought Fund requires the Board to target an average return, net of costs, of at least the Consumer Price Index plus 2.0% to 3.0% pa over the long term while taking an acceptable but not excessive level of risk.

Measurement of performance against the Investment Mandate commenced on 1 April 2020.

Payments from the Future Drought Fund will be managed in line with the Future Drought Fund Act 2019.

Further information regarding the Future Drought Fund is also available on the Department of Finance website.

The Emergency Response Fund was established in December 2019 to support communities impacted by natural disasters.

The Fund was established with a capital contribution of $4bn, transferred from the Education Investment Fund which was closed in December 2019.

The Fund allows the Government to draw up to $200 million in any given year, beyond what is already available to fund emergency response and natural disaster recovery and preparedness, where it determines the existing recovery and resilience-building programs are insufficient to provide an appropriate response to natural disasters.

The Investment Mandate for the Emergency Response Fund requires the Board to target an average return, net of costs, of at least the Consumer Price Index plus 2.0% to 3.0% pa over the long term while taking an acceptable but not excessive level of risk.  Measurement of performance against the Investment Mandate commenced on 1 April 2020.

Payments from the Emergency Response Fund will be managed in line with the Emergency Response Fund Act 2019.

Further information regarding the Emergency Response Fund is also available on the Department of Finance website.

The DisabilityCare Australia Fund was established in 2014 to help fund the National Disability Insurance Scheme (NDIS), which will support a better life for Australians with a significant and permanent disability and their families and carers.

The Fund will reimburse States, Territories and the Commonwealth for expenditure incurred in relation to the NDIS.

The Fund's Investment Mandate sets a benchmark return of the Australian three month bank bill swap rate plus 0.3% per annum calculated on a rolling 12 month basis.  Investments must minimise the probability of capital loss over a 12 month horizon.

Payments from the DisablityCare Australia Fund are managed in accordance with the DisabilityCare Australian Fund Act 2013. 

Further information about the DisabilityCare Australia Fund is also available on the Department of Finance website.