Establishing an Asset Recycling Fund
The Government will establish an Asset Recycling Fund to facilitate the investment in new infrastructure. The Asset Recycling Fund will commence on 1 July 2014.
The Asset Recycling Fund will be used to make payments to states and territories under the Infrastructure Growth Package. These payments will be used to assist states and territories sell existing assets and recycle the capital into new productivity‑enhancing infrastructure as wellas expedite nationally significant infrastructure projects across the country.
The Fund will receive an initial contribution of $5.9 billion from the uncommitted funds in the Building Australia Fund ($2.4 billion) and the Education Investment Fund ($3.5 billion). Further contributions will be made from the sale proceeds from Medibank Private and from other privatisations.
The investments in the Asset Recycling Fund will be managed by the Future Fund Board of Guardians. The Asset Recycling Fund capital and net earnings from the Fund will be invested in infrastructure under the National Partnership Agreement on Asset Recycling, the National Partnership Agreement on Land Transport Infrastructure Projects and possible further agreements.
The Australian Government is putting in place the necessary plans to make incentive payments to states and territories from the Asset Recycling Fund from 1 July 2014 to get infrastructure funding moving.