The Australian government has invested in quantum computing, data centres, metal refining technology and aerospace — as well as meat pies and Tim Tam biscuits — as part of its drive to boost manufacturing and economic growth. The A$15bn ($10.5bn) National Reconstruction Fund Corporation was established by Anthony Albanese's Labor government in 2023 with a mandate to transform Australia's economy, which remains dominated by mining and agriculture.
This week the fund issued its second annual report pointing to a 7.7 per cent return on investments to date, well above its long-term target of about 6 to 7 per cent. Total operating income rose from A$5mn last year to A$54.6mn. The fund, part of Albanese's "Future Made in Australia" drive, aims to stimulate the industrial base by helping companies commercialise manufacturing technology.
The fund backed 22 companies last year investing A$1.7bn, with managing director David Gall expecting investment to exceed A$2bn this year. It has already backed shipbuilder Austal's domestic operations with A$245mn. Investments include quantum computing firms Diraq and Silicon Quantum Computing, aerospace company Gilmour Space Technologies, and high purity aluminium producer Alpha HPA.
However, the fund also loaned A$45mn to Arnott's (Tim Tams maker) and A$36mn to Patties Food Group (Four'N Twenty pies). Gall dismissed claims of bailing out foreign owners, stating the loans were made at commercial rates to protect jobs and boost export potential.
Source: Financial Times Companies · Summarized by HeadlinesBriefing