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