Tim Ayres (NSW, Australian Labor Party, Assistant Minister for Trade) Share this | Hansard source

That same question could be directed to a range of these funds that are allocated for these purposes. That is why, indeed, the amount that the government has allocated to the fund is the $10 billion amount. It is designed to be an amount sufficient to meet the publicly stated purpose of the fund—that is, to disburse a minimum of $500 million every year. A significant upfront credit of $10 billion provides an enduring source of funding for social and affordable homes. You would anticipate that the nature of setting investment objectives is that the task of the fund is to meet the investment objectives. It is also true to say that no matter what the investment vehicle is, public or private, that investment objectives are not always met in any given year. That's why, in order to provide clarity here about the fund's capacity to meet its public policy objectives, a $500 million allocation is made.

The fund will leverage the Future Fund Board of Guardians to generate investment returns that can be used to improve housing outcomes for Australians. The existing investment funds have provided consistent and reliable annual disbursements. The Future Fund board has a proven track record of delivering long-term investment returns that have in fact exceeded its investment mandate. This has been delivered with acceptable, but not excessive, risk that can build sustainable investment funds into the future. The Grattan Institute senior economist Brendan Coates said in the Senate inquiry:

… other future funds have continued to disburse moneys even when the fund hasn't given a return in a year.

All of those funds that are disbursed will go to housing every year.