Opposition Accuses Labor of ‘Raiding the Nation’s Nest Egg’ in Future Fund Shift

Australian Treasurer Jim Chalmers speaks to the media during a press conference at Parliament House in Canberra, Australia on Nov. 21, 2024. AAP Image/Lukas Coch

The Albanese government’s decision to turn to the Future Fund to tackle the housing and climate crisis dominated Question Time in Parliament on Nov.21.

In his announcement, Treasurer Jim Chalmers said the Fund would be directed to invest in housing, infrastructure, and the green energy transition, but only where it can generate returns.

Federal Leader of the Opposition Peter Dutton questioned Prime Minister Anthony Albanese, who had just returned from the G20 summit, about the policy change.

Dutton reminded the chamber that the Future Fund was set up under the Liberal government in 2006 to strengthen Australia’s long-term financial position.

“For nearly 20 years, governments of both sides have respected the independence of the fund by not meddling with its investment mandate,” he said.

He accused the government of “reckless spending” and “raiding the nation’s nest egg” to cover its economic failures.

“Prime minister, why are Australians paying for the Albanese government’s economic incompetence?” Dutton added.

Albanese countered the attack, pointing out that the Liberals left office with a $78 billion deficit, which his government had turned into a $22 billion surplus.

He questioned the opposition’s credibility on economic matters and said inflation had come down several points.

When asked to reply more directly to the question, Albanese said the “independence of the Future Fund is very important,” and reiterated that the Fund’s mandate would remain focused on “maximising returns.”

Shadow Treasurer Presses Chalmers

Shadow Treasurer Angus Taylor also repeatedly cornered the government on the amendments, asking whether the decision to “raid” the Future Fund had been discussed with former Labor Treasurer Wayne Swan, now the chair of Cbus super fund.

Chalmers responded that the discussions had been with the Future Fund’s board and its chair.

“[Finance Minister Katy] Gallagher and I went to the board of the Future Fund in August of this year,” he said.

He added that the discussions were productive and that the board and the government had worked together on the announcement.

Taylor pressed Chalmers on remarks from David Murray, the first chairman of the Future Fund, to the Australian Financial Review.

Murray had told a media outlet that directing the Fund to prioritise housing and renewable energy investments risked wasting taxpayer money on “boondoggle projects.”

Chalmers dismissed Murray’s comments.

“Murray has a right to express his view but he’s factually wrong.”

He also pushed back Taylor for his repeated questioning.

“Every time the shadow treasurer asks me about this, what he is really telling everybody is he wants less investment in housing and energy and infrastructure,” Chalmers said.

Despite Chalmers’ defence, Taylor persisted, asking why the government was “making future generations pay” for Labor’s economic mismanagement.

Government’s Future Fund plan

Earlier in the day, the government clarified that it would also provide medium-term certainty to the $230 billion Future Fund by promising not to draw down on its holdings until at least 2032-33.

In a joint statement, Chalmers and Gallagher explained that the Australian economy faces major structural shifts, including the global net-zero transformation, technological changes, and demographic shifts.

They said the Fund could help steer Australia through these changes.

“The Future Fund has made clear it can play a prominent role in capitalising on these economic opportunities and supporting Australia’s prosperity,” the statement read.

They also insisted that the Fund’s primary focus would remain on maximising returns, while the changes would help it better serve future Australians.