This Budget announced the establishment of the Federation Fund (FF). The purpose of the FF is to finance a number of major projects of national significance, in order to both mark the Centenary of Federation and contribute to the building of required infrastructure for the coming century. The FF will be established as a separate Trust Account within the Commonwealth Public Account with total funds of $1 billion.
The projects are to be well advanced but not necessarily completed by the Centenary of Federation in 2001, and will be selected on the basis that they will generate jobs in the construction phase and make a significant ongoing contribution to Australia and the Australian economy. For example, it has already been decided to draw upon the FF from 1998-99 onwards to finance the cost of constructing the National Museum of Australia and the associated building for the Australian Institute of Aboriginal and Torres Strait Islander Studies.
The FF will fully fund projects, augment existing funding or contribute on a matching basis with other governments and the private sector. There will be a reasonable spread of projects around Australia. Projects will be selected by the Commonwealth in consultation with State and Territory Governments. The Prime Minister will be writing to Premiers and Chief Ministers indicating the broad criteria that will apply for possible projects and seeking their views on possible projects that might be financed from the FF.
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