The $15 billion National Reconstruction Fund (NRF) aims to invest in growing Australia’s industrial capabilities to create more secure and well-paid jobs for the future.
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What is the National Reconstruction Fund (NRF)?
On 30 November 2023, the Government announced that the National Reconstruction Fund is now open for business. This $15 billion fund can begin investments targeted at the development of regional areas and contribute to the growth of Australia’s industrial capabilities creating secure, well-paid jobs for the future.
The National Reconstruction Fund Corporation’s (NRFC) Investment Mandate has been published which sets out clear expectations for the NRF Corporation, including areas for investment across seven key priorities. It also directs the Corporation to operate on a commercial, self-sufficient basis, including due diligence on investment decisions and the expectation of a return for the taxpayer.
The mandate requires the Corporation to target a rate of return of between 2% and 3% above the five-year Australian Government bond rate over the medium to long term.
National Reconstruction Fund seven priority areas
Resources
The National Reconstruction Fund Corporation may invest in activities that value-add in resources. Australia can gain more value from our mining industry through investment in activities which:
- manufacture innovative products used in or in connection with mining, such as exploration and drilling technology, safety solutions and transport
- process, refine and use minerals here in Australia including refining materials for use in battery manufacturing and technologies
- manufacture products and technologies to advance mineral processing, refinement and fabrication.
Agriculture, forestry and fisheries
The National Reconstruction Fund Corporation may invest in activities that add value to the agriculture, forestry and fisheries sectors by:
- manufacturing products for use in or in connection with primary industries
- processing primary industry outputs into higher value goods.
Activities may include:
- fertiliser and farm equipment manufacture
- technologies to manage crop, tree, and animal health
- improved storage solutions that extend product life
- manufacturing food, beverages, timber and fibre products that are processed from primary industry outputs.
Manufacturing doesn’t include new farms or plantations.
Transport
The National Reconstruction Fund Corporation may invest in the manufacture of vehicles and parts for:
- aircraft
- road vehicles
- rail vehicles
- ships.
Transport manufacture doesn’t include common use infrastructure such as roads or railways. It does include the products and components used in infrastructure, such as road surfacing materials or rail sleepers.
Medical science
The National Reconstruction Fund Corporation may invest in medical science manufacturing.
This includes products for therapeutic use such as:
- medical devices
- medicines
- personal protective equipment
- vaccines.
Therapeutic use means products and their components that:
- prevent, diagnose, cure or alleviate a disease, sickness, defect or injury
- influence, inhibit or modify a mental or physical process
- test for diseases and conditions
- influence, control, prevent or test for pregnancy
- replace or modify organs or body parts.
Medical manufacturing does not include veterinary products, cosmetics or health foods.
Renewables and low emissions technologies
The National Reconstruction Fund Corporation may invest in commercial opportunities for manufacturing products related to:
- renewable energy generation, transmission, distribution, or storage
- reducing greenhouse gas emissions
- energy efficiency
- recycling
- waste reduction or resource recovery.
Manufacturing does not cover the installation of standalone renewable energy infrastructure for the generation of power for general use, such as solar or wind farms. It does include opportunities such as the manufacture of:
- components of wind turbines
- batteries
- solar panels
- hydrogen electrolysers
- innovative packaging solutions for waste reduction.
Defence capability
The National Reconstruction Fund Corporation may invest to support the manufacture of products that are wholly or primarily for use in or in connection with defence. This may include the development, manufacturing and sustainment of products that are inputs to defence capability.
Enabling capabilities: Engineering and data science
The National Reconstruction Fund Corporation may invest in manufacturing technologies and products that support the advancement of Australia’s industrial capability. This includes:
- advanced manufacturing technologies or materials technologies, including:
- additive manufacturing,
- advanced composite materials
- high specification machining processes
- semiconductors
- advanced integrated circuit manufacture
- artificial intelligence technologies
- advanced information or communication technologies
- quantum technologies
- autonomous systems
- robotics technologies
- positioning, timing and sensing technologies
- biotechnologies
- space objects or products for use in, or in connection with, space objects
- other advanced technologies that are emerging or may emerge.
National Reconstruction Fund restrictions
Investments will not be made in projects which directly finance:
- Coal or natural gas extraction
- Constructing pipeline infrastructure for extracting natural gas
- Native forest logging
National Reconstruction Fund important dates
- This program is open on an ongoing basis.
- Register your interest with GrantHelper.
National Reconstruction Fund key objectives
The National Reconstruction Fund aims to address several key reasons for funding challenges faced by businesses, particularly small and medium-sized enterprises (SMEs). These reasons include:
- Security: Many businesses struggle to secure financing without offering collateral, typically in the form of real estate. This requirement poses difficulties for those without such assets.
- Additional Funding: Small businesses that have already secured finance against real estate often encounter obstacles when seeking additional funding to support their growth plans.
- Funding Costs: Even when access to finance is available, the associated costs are often higher than necessary, adding to the financial burden on small businesses.
- Control: Small businesses may find it challenging to attract passive equity investments, which would enable them to expand without taking on more debt or relinquishing control of their business.
To address these issues, the National Reconstruction Fund focuses on achieving the following objectives:
- Increased Availability of Patient Equity Capital: The fund aims to enhance the availability of patient equity capital, specifically targeting local SMEs. This type of long-term investment can provide stability and support sustainable growth.
- Increased Investment in SMEs: By facilitating access to funding, the fund strives to encourage higher levels of investment in small and medium-sized enterprises. This can contribute to their development and expansion.
- Facilitate Interstate and Overseas Trade and Commerce: The National Reconstruction Fund aims to support businesses in expanding their operations beyond local boundaries. This can involve fostering interstate and international trade and commerce, boosting economic activity and diversification.
- Job Creation and Economic Growth: As part of the COVID-19 recovery efforts, the fund aims to stimulate job creation and overall economic growth. By providing financial resources and support to SMEs, it seeks to contribute to a stronger and more resilient economy.
These objectives reflect the fund’s broader mission to address funding challenges, promote investment, and support SMEs in their growth and recovery during and beyond the COVID-19 pandemic.
Does the National Reconstruction Fund provide grants?
The NRF will not provide grants. Funding opportunities include loans, guarantees and equity investments.
Type and level of National Reconstruction Fund support
The NRF will provide a range of finance options including:
- Loans
- Equity investment
- Guarantees
The NRF also proposes to offer non-financial support, for example, through the provision of strategic advice, mentoring, talent management and network referrals for small and medium businesses to access.
The NRF encourages proposals that involve credible co-investors or partners, strengthening the financial and strategic backing of the projects.
Investment strategy
The National Reconstruction Fund’s investment stake will be between 10 and 40%, allowing small-business owners to maintain control while also allowing the National Reconstruction Fund to offer the kind of financial support to drive business growth.
This strategy is designed to balance the provision of significant financial impact for business growth while not requiring owners to cede control to investors.
Investment criteria
Established Australian businesses must have generated annual revenue between $10 million and $100 million and can demonstrate three years of revenue growth and profitability.
The National Reconstruction Fund targets growing companies across industries based on the following criteria:
- Revenue – $10 to $100 Million
- Equity – 10% to 40%
- Management – Entrepreneurial focus
- Investment – $5 to $15 Million
- Location – Based in Australia
- Growth – Significant expansion opportunity
- Leverage – Less than 50%
- Business type – Post-start-ups and proven business models
The NRF evaluates proposals based on governance quality, scalability, market fit, intellectual property protection, and sustainability. Proposals must also demonstrate the ability to generate returns or repay debt in line with the NRF’s mandate.
Level of support
Established Australian businesses will be eligible for long-term equity capital investments of between $5 million and $15 million.
This will be a competitive application process; should you wish to apply, your application will be assessed against submissions from competing organisations.
National Reconstruction Fund funding allocation
$8 billion of the total $15 billion announced had been earmarked to the priority areas listed below.
Powering Australia: $3 billion
Up to $3 billion to invest in green metals (steel, alumina and aluminium); clean energy component manufacturing; hydrogen electrolysers and fuel switching; agricultural methane reduction and waste reduction.
Medical Manufacturing Fund: $1.5 billion
A dedicated Medical Manufacturing Fund to work with industry to identify ways that government purchasing strategies can help build local medical manufacturing capability to create secure well-paid jobs.
Value Adding in Resources: $1 billion
A $1 billion fund to expand Australia’s mining science technology capability, create jobs and ensure a greater share of our raw materials are processed in Australia, through the Value Adding in Resources Fund.
Critical Technologies: $1 billion
A $1 billion fund to expand Australia’s critical technology capability, in areas like Artificial Intelligence, robotics and quantum computing by setting up a Critical Technologies Fund to deliver investment support through loans, equity and guarantees for businesses in critical technologies.
Advanced Manufacturing: $1 billion
$1 billion through grants will be invested in advanced manufacturing to rebuild our industrial base creating new capabilities and opportunities to innovate in transport, defence, resources, agricultural and food processing, medical science, renewables and low emission technologies manufacturing.
Agriculture, Forestry, Fisheries, Food and Fibre: $500 million
$500 million in grants will be reserved to encourage investment in value-adding and growing exports, help diversify the sector and open up new possibilities for trade.
This $15 billion fund is aimed at strengthening and diversifying Australia’s industrial capabilities and broadening the base of industry through investments in regional economies. The fund will provide capital to Australian projects to assist in capturing high value market opportunities.
National Reconstruction Fund Resources
- Source
- Investment Guidance
- National Reconstruction Fund Corporation’s Investment Mandate
- Register your interest
National Reconstruction Fund Recipients
| Recipient | Description | Sector |
| Harrison.ai 29 Jan 2025 | The NRFC has invested $32 million in Harrison.ai to advance its comprehensive suite of radiology and pathology diagnostics. | Medical science Enabling capabilities |
| Arafura Rare Earths Limited 15 Jan 2025 | The NRFC is committing $200 million to Arafura Rare Earths Limited, providing critical support for financing the Nolans Project in the Northern Territory. | Value-add in resources |
| Vault Cloud 20 Dec 2024 | With a $22.5 million investment, the NRFC will help Vault Cloud expand its existing offerings and develop new, innovative services. | Enabling capabilities Defence capability |
| Myriota 19 Dec 2024 | he NRFC’s $25 million investment in Myriota is aimed at scaling up Australian-based manufacturing of its advanced satellite communications modules. | Enabling capabilities |
| Quantum Brilliance 10 Dec 2024 | The NRFC has allocated $13 million to Quantum Brilliance, which will fund the creation of a quantum diamond foundry in Australia. | Enabling capabilities |
| Resource Capital Funds 19 Nov 2024 | In partnership with Resource Capital Funds, the NRFC has committed $100 million to drive forward the Resource Capital Funds Innovation Strategy. | Value-add in resources |
| Russell Mineral Equipment 19 Nov 2024 | The NRFC’s $40 million investment in Russell Mineral Equipment will support the expansion of its manufacturing operations across Australia. | Value-add in resources |
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