Like all policy instruments, the Future Fund was created to manage the challenges the country was facing at the time. The government has every right and reason to adjust and adapt the mandate to manage very different political and economic challenges today.

The Future Fund (FF) was created by the Parliament at the time when the resources boom and exports brought into the country a huge trade and budget surplus. ‘To keep the bond market alive while eliminating net debt,’ the Parliament enacted the Future Fund Act 2006 (Castello and Coleman 2009). The decision to set aside budget surplus for an independently managed investment fund was neither natural nor exceptional. It was a political decision of the government at the time, as are the choices of all fiscal instruments.

The Treasurer, Jim Chalmers, on behalf of government, issued a statement on 21 November 2024, emphasising the primary focus of FF remains on its returns while requiring the fund to ‘consider Australia’s national priorities in its investment decisions, where possible, appropriate and consistent with strong returns.’ Three highlighted areas are: housing, energy transition, and infrastructure. The announcement was immediately criticised by Peter Castello, the former Treasurer and later the chairman of the FF Board of Guardians until 2024, saying government is using FF as a ‘political slush fund.’ The debate raises several questions: does government have a ‘right’ to change the investment mandates, requesting FF to invest in these three specific areas that represent the future rather than........

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