The Turnbull government will overhaul the $5 billion Northern Australia Infrastructure Facility after an independent review found its investment mandate was too restrictive and was holding back financial support for big projects in Queensland, Western Australia and the Northern Territory.

Amid growing frustration about the slow pace of NAIF investments – it has only made one investment since it was created two years ago – federal Resources and Northern Australia Minister Matt Canavan will on Thursday announce changes to NAIF's investment mandate to open up more opportunities and create more jobs in Northern Australia.