One year ago, Treasurer Jim Chalmers and Finance Minister Katy Gallagher declared that the Future Fund, which is one-third the size of the Australian economy, would be directed to invest in housing and the green energy transition “where possible, appropriate, and consistent with strong returns”.
This was the first time the federal government imposed certain asset classes for the Future Fund, established in 2006 by then-Liberal Treasurer Peter Costello to support the pensions of federal employees.
The move reinforced Chalmers’ belief in “values-based capitalism”, which directs both public and private resources towards social goals. It also accords with the Future Fund’s new chair, former Labor Minister Greg Combet, who wants to increase investment in renewable energy.
