The Northern Australia Infrastructure Facility (NAIF) was established on 1 July 2016 by theNorthern Australia Infrastructure Facility Act 2016 (NAIF Act). The NAIF is a corporate Commonwealth entity that provides financial assistance to the states and territories and other entities for the development of Northern Australia economic infrastructure.
Legislation
The NAIF Act gives effect to the following:
- Establishment of Government bodies: the Northern Australia Infrastructure Facility Board (NAIF Board), and the NAIF:
- the NAIF Board is responsible for ensuring the proper, efficient and effective performance of the NAIF’s functions and deciding the strategies and policies to be followed by the NAIF, within the scope of the Investment Mandate; and
- the NAIF is responsible for determining the terms and conditions of the financial assistance and providing financial assistance to the states and territories and other entities for the development of Northern Australia economic infrastructure.
- Funds to invest: the Consolidated Revenue Fund was appropriated $5 billion for the purpose of the NAIF providing financial assistance to the states and territories and other entities for the development of Northern Australia economic infrastructure. The NAIF cannot make investment decisions after 30 June 2026.
- Investment Mandate: the Minister for Finance and the Minister for Agriculture and Northern Australia, as responsible Ministers are required to issue an Investment Mandate (detailed below).
Investment Mandate
The Northern Australian Infrastructure Facility Investment Mandate Direction 2021 came into effect on 2 July 2021 and includes guidance on the following:
- the types of projects eligible for NAIF financial assistance (including new infrastructure or activities to grow the capacity of existing infrastructure);
- arrangements to support smaller projects through funding project proponents directly;
- what economic benefit may be considered a public benefit;
- types of concessions the NAIF can offer in its concessional loans products;
- the use of alternate financing mechanisms, including higher-risk instruments such as derivatives and equity investments; and
- the Government's expectations in regard to risk.
The NAIF Investment Mandate is a legislative instrument, which is not subject to disallowance.
For queries regarding financial assistance provided by the NAIF, or if you are seeking funding from the NAIF, please refer to the Northern Australia Infrastructure Facility website. Queries on policy matters regarding the NAIF should be directed to the Department of Infrastructure, Transport, Regional Development and Communications, which has primary portfolio responsibility for the NAIF.