Regional Australia Future Fund pledged by Coalition

One of the biggest cash pledges this election cycle has a regional focus. But some say there’s devil in the detail.

One of the biggest cash splashes of the 2025 campaign has been aimed at rural Australia, with the Coalition unveiling its $20bn Regional Australia Future Fund.

Modelled on former treasurer Peter Costello’s Future Fund, Deputy Opposition Leader David Littleproud said the regional financial mechanism would be bankrolled by commodity royalties.

The federal Nationals leader said the proposed RAFF would be established with a quarter of the 80 per cent in windfall gains, until it grew to $20bn.

The Coalition expects the RAFF would provide a $1b dividend each year to pay for infrastructure and services that local councils cannot afford, such as roads, bridges and telecommunications infrastructure.

“Once established the fund will invest a fair share of the profits created through the hard work of regional Australians back into the regions,” Mr Littleproud said.

“It means we don’t have to fight for funding shortfalls to provide infrastructure in regional areas.”

However, a Labor spokeswoman said the fund was hypothetical as it was predicated on future earnings.

“The Coalition’s proposed $1 billion in funding to the regions represents a sneaky cut that would see billions ripped out of regional communities,” the spokeswoman said.

“Even worse — they can’t even guarantee the $1 billion will reach the regions, because it is based on hypothetical revenue.

“This is nothing short of a hoax.”

The Coalition pledge was welcomed by several lobby groups, including the Australian Local Government Association and childcare advocates.

ALGA president Matt Burnett said it was crucial the fund supported ‘formula-based, non-competitive funding’.

“Continued reliance on competitive funding programs hinders our ability to plan and budget for the long-term needs of our communities,” he said.

The Parenthood campaign director Maddy Butler said the Coalition pledge was a worthwhile step towards improving regional childcare access.

“While funding is an important piece of the puzzle, it alone won’t address all the challenges facing regional communities,” she said.

“We urge the Opposition to build on this fund with a commitment to and vision for universal early childhood education and care, so that every child can access some form of care, no matter where they live.”

Meanwhile, the federal Coalition also pledged $1.5m towards consumer awareness of ‘fake meat’ products.

Mr Littleproud said the package would implement the recommendations from the 2022 Don’t Mince Words: Definitions of Meat and Other Animal Products Senate Inquiry.

“The failure to fix inaccurate labelling is confusing for families who were already struggling with prices at the supermarket checkout,” he said.