Australian Industry Group welcomed the opportunity to contribute to the independent review of the National Reconstruction Fund Corporation Act 2023.

We strongly supported the establishment of the National Reconstruction Fund. The creation of the NRF represented an important step in Australia's industrial policy architecture by providing a mechanism to support industrial transformation, economic resilience and sovereign capability. The establishment of a statutory fund with legislated objectives and a dedicated funding allocation provides a durable foundation which prior industrial policy initiatives in Australia have lacked.

We propose the following recommendations to build on the strengths of the existing model while addressing areas for improvement.

1. Greater emphasis should be placed on investments that strengthen industrial capability, supply chains, and domestic value-adding, alongside support for emerging technologies.
2. Debt financing could be expanded through commercial bank partnerships to improve efficiency, reduce administrative burden, and achieve better alignment with industry financing preferences.
3. NRFC Board composition should be reviewed to enhance industry representation and ensure a balance between financial expertise and practical experience in manufacturing, supply chains, and industrial transformation.