Purpose
The purpose of the Australian Government Future Fund is to fully fund the future superannuation payments of public servants, which currently come from the federal budget.
In March 2007 the opposition Labor Party announced it would withdraw A$2.7 billion from the Future Fund to finance a broadband initiative across Australia if it won the 2007 election; this proposal prompted government ministers to proclaim that Labor intended to "raid" the Future Fund for their own means.
Labor later indicated that the use of any funds from the Future Fund towards a national high speed broadband network will have to comply and meet all requirements of any commercial investment. This included producing a commercial rate of return on the invested funds, with all profits being returned back into the Future Fund allowing further investment.
In the 2008–2009 Australian Government Budget, the Treasurer, Wayne Swan announced that the Future Fund would manage three new funds established by the Government:
- Building Australia Fund – An infrastructure fund to improve and create major infrastructure projects (including road, rail, ports and broadband) with an initial allocation of A$20 billion. At 30 September 2011, it was valued at A$7.9 billion, an increase of A$2.5 billion on the previous's value.
- Health and Hospitals Fund – A health infrastructure fund to provide increased spending on hospitals, medical equipment etc. with an initial allocation of A$10 billion. At 30 September 2011, it was valued at A$4.31 billion.
- Education Investment Fund – A fund to provide capital investment in higher education and vocational education and training, with an initial allocation of around A$11 billion; including A$6 billion from the Higher Education Endowment Fund, of which it absorbs. At 30 September 2011, it was valued at A$4.89 billion.
Read more about this topic: Australian Government Future Fund
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