National Reconstruction Fund: The story so far
National Reconstruction Fund: The story so far
This article was originally published 1 December 2023, last updated 24 April 2026.
Australia’s National Reconstruction Fund (NRF) represents a significant shift in how government supports industry investment. Rather than providing grants, the NRF is designed as a long‑term investment vehicle that partners with the private sector to strengthen domestic manufacturing capability, improve supply chain resilience and support Australia’s transition to a net-zero economy.
With funding now actively available to businesses, the NRF has moved from policy concept to capital deployment. This article outlines how the fund operates, where funding is being directed, the latest developments, and the key milestones since its establishment.
What is the National Reconstruction Fund?
The National Reconstruction Fund is a $15 billion Australian Government investment fund established to support projects that deliver long‑term economic and strategic value for Australia. It is intended to:
- Strengthen Australia’s industrial capability and sovereign resilience
- Support value‑adding manufacturing and production
- Crowd-in private capital alongside public investment
- Help Australian businesses scale, modernise and decarbonise.
The fund operates through the National Reconstruction Fund Corporation (NRFC), which makes investment decisions on an independent, commercial basis within a government‑set investment mandate. Unlike traditional grant programs, the NRF invests using loans, equity and guarantees, enabling it to take a longer‑term view and support projects that may not otherwise secure commercial finance at scale.
How the fund operates in practice
The NRFC is governed by an independent board and is responsible for assessing, negotiating and managing investments. Its mandate allows it to invest in projects that align with national priorities while still operating on commercial principles.
Key features of the NRF include:
- Flexible investment tools such as debt, equity and guarantees
- Risk tolerance beyond traditional commercial lenders to crowd in private capital
- Long‑term focus on productivity, resilience and industrial transformation
- Sector‑based prioritisation, rather than open‑ended eligibility.
The fund is intended to complement, not replace, private finance, particularly in capital‑intensive sectors where scale, risk or long lead times can limit investment activity.
Priority sectors and funding allocations
The NRF is directed towards seven priority areas of the Australian economy:
- Renewables and low emissions technologies
- Medical science
- Transport
- Value‑adding in agriculture, forestry and fisheries
- Value‑adding in the resources sector
- Defence capability
- Enabling capabilities.
Within these priority areas, the government previously identified $8 billion of the total $15 billion in NRF funds for the following:
- Renewables and low emissions technologies: Up to $3 billion
- Medical manufacturing: $1.5 billion
- Value-adding in resources: $1 billion
- Critical technologies: $1 billion
- Advanced manufacturing: $1 billion
- Value-adding in agriculture, forestry, fisheries, food or fibre: $500 million.
Latest update: $6.15 billion now available to businesses
As of 20 April 2026, Australian businesses can now access $6.15 billion in funding through the National Reconstruction Fund, following the government’s decision to fast‑track three funding streams to strengthen critical supply chains and accelerate investment. Applications are now open.
The funding has been made available across the following NRF sub‑funds:
- Economic Resilience Program – $1 billion
Provides zero‑interest loans to businesses operating in critical supply chains, including the production and transport of fuels, fertilisers, plastics and agricultural chemicals. The program is intended to help businesses manage global disruptions and maintain essential domestic production.
- Net Zero Fund – $5 billion
Supports new manufacturing investment and energy‑efficiency upgrades in hard‑to‑abate sectors. This includes building domestic clean‑energy supply chains and supporting the manufacture of low‑emissions technologies such as wind, solar and energy storage, as well as low‑carbon liquid fuels.
The Net Zero Fund will target large industrial facilities, enabling investment in new equipment, processes and technologies to reduce emissions while maintaining jobs in regional and outer-suburban areas.
This initiative complements broader government strategies, including the Future Made in Australia plan and the Capacity Investment Scheme, and reinforces Australia’s commitment to achieving economy-wide net zero emissions by 2050.
- Forestry Growth Fund – $150 million
Provides concessional finance to support timber processing and value‑adding investment, particularly for housing construction supply chains, including mills and processing facilities.
This announcement marks a material shift for industry, signalling that NRF capital is now moving into the economy rather than remaining in establishment phase.
Timeline of the National Reconstruction Fund – key milestones
The NRF has progressed through a number of key stages since its announcement:
- October 2022 – In the October 2022 Federal Budget, the Australian Government announced the establishment of the $15 billion National Reconstruction Fund in the Federal Budget
- May 2023 – In the 2023 Federal Budget, the government committed funding over four years to establish the National Reconstruction Fund Corporation (NRFC) and provide departmental oversight
- August 2023 – The Minister for Industry and Science announced the NRF’s independent board, to be chaired by Martijn Wilder AM
- September 2023 – The NRFC board held its first meeting
- November 2023 – The NRF investment mandate was registered
- February 2024 – The NRFC Board announced Martin Power as the inaugural Chief Executive Officer
- June 2024 – Dr Mary Manning was announced as Chief Investment Officer
- September 2025 - The government announced the creation of a $5 billion Net Zero Fund
- 2025–2026 – The NRF transitioned from establishment to active investment, with funding accelerated and applications opened to industry.
What this means for businesses
The release of $6.15 billion in NRF funding represents a clear transition from policy design to execution. For businesses operating in priority sectors, this increases the importance of:
- Understanding how NRF finance differs from traditional grants
- Preparing projects that meet both commercial and policy objectives
- Aligning investment proposals with supply chain resilience, manufacturing capability and net zero outcomes
As the NRFC continues to deploy capital, businesses with investment‑ready projects are likely to be best positioned to engage.
How BDO can help
BDO works with organisations across manufacturing, resources, energy, agribusiness and infrastructure to help navigate government investment programs and complex funding landscapes. This includes support with investment readiness, funding strategy, commercial structuring and alignment with policy priorities.
If you would like to understand how the National Reconstruction Fund may apply to your business or project, please contact the R&D and government incentives team.
