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In accordance with the Future Fund Act 2006, from 2020 funds can be withdrawn from it to cover the annual unfunded Commonwealth superannuation liabilities.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

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 Nation-building Funds were established in 2008 to provide financing resources to help meet the Australian Government’s commitment to Australia’s future through investment in critical areas of infrastructure such as transport, communications, energy, water, education, research and health.

The Funds' Investment Mandates set a benchmark return of the Australian three-month bank bill swap rate +0.3% per annum calculated on a rolling 12-month basis. 

The Mandates require that investments minimise the probability of capital loss over a 12 month horizon. The assets of the Nation-building Funds are invested in a combination of short- and medium-term debt instruments.

Payments from the Funds are determined by the Australian Government, with advice from Infrastructure Australia in accordance with the Nation-building Funds Act 2008.

Building Australia Fund

The purpose of the Building Australia Fund is to enhance the Australian Government’s ability to make payments in relation to the creation or development of transport, communications, energy and water infrastructure and in relation to eligible national broadband matters.

Education Investment Fund

The purpose of the Education Investment Fund is to enhance the Australian Government’s ability to make payments in relation to the creation or development of higher education infrastructure, research infrastructure, vocational education and training infrastructure, eligible education infrastructure.

Further information about the Nation-building Funds 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.

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

The Government will issue the Future Fund Board of Guardians with the ATSILS Fund’s investment mandate in due course.