Future Fund

Australia

Goals and objectives

The Future Fund Act 2006 (the Act) commenced on April 3, 2006, and established the Future Fund Special Account (the Fund Account), the Future Fund Board of Guardians (the Board) and the Future Fund Management Agency (the Agency), collectively referred to as the Future Fund.

The object of the Act is to strengthen the Commonwealth’s long-term financial position. The Future Fund will make provision for unfunded superannuation liabilities that will become payable during a period when an aging population is likely to place significant pressure on the Commonwealth’s finances.

The legislation quarantines the Fund, the balance of the Fund Account and other investments, for the ultimate purpose of paying unfunded superannuation liabilities and expenses associated with the investment and administration of both the Board of Guardians, and by direct transfer from the administered funds, the expenses of the Future Fund Management Agency.

How the fund is managed

The Future Fund is controlled by an independent Board of Guardians that is collectively responsible for the investment decisions of the fund and is accountable to the Australian Government for the safekeeping and performance of fund assets. The Future Fund Management Agency is responsible for the development of recommendations to the Board on appropriate investment strategies and for the implementation of these strategies. The functions of both the Board of Guardians and the Future Fund Management Agency are set out in the Future Fund Act. The Board of Guardians reports annually to the Australian Parliament on all aspects of the Fund’s performance, and the Fund is subject to independent external audit by the Australian National Audit Office.

In the 2008–09 budget, the Australian Government announced that the Future Fund Board of Guardians and Management Agency would be given additional responsibility for managing the investment of three additional specific purpose funds that the government proposes to establish to support expenditure on education, health, and infrastructure. In the 2008–09 budget, the Australian Government announced that the Future Fund Board of Guardians and Management Agency would be given additional responsibility for managing the investment of three additional specific purpose funds that the government proposes to establish to support expenditure on education, health, and infrastructure.

Contact Details

Level 43, 120 Collins St
Melbourne 3000
Australia

Read Self-Assessment Report