The Federal Government is moving to make it easier for projects to receive Northern Australia Infrastructure Facility (NAIF) funding and help kick along the country’s economic resurgence from COVID-19.

Minister for Resources, Water and Northern Australia Keith Pitt said the 2020-21 Budget would include NAIF reforms which would provide more flexibility, increased risk appetite and widen the scope of projects eligible for funding.

The changes are on top of July’s announcement of a five-year extension to NAIF operations until 30 June 2026.

“The reforms to NAIF will ensure the $5 billion facility will have more flexibility to bankroll investment in a wider range of projects across Northern Australia,” Mr Pitt said.

Assistant Minister for Northern Australia Michelle Landry said the reforms came off the back of a statutory review that found that while the NAIF was seen to be an important vehicle of investment in the north, more could be done.

“We are determined to open up further opportunities to strengthen northern Australia’s contribution to our economy by continuing to support infrastructure and development,” Mrs Landry said.

“NAIF has already invested $2.4 billion in sectors including health, education, resources, energy and agriculture, supporting $4.4 billion in total project value and more than 7200 jobs.”

The final report from the review will be tabled in Parliament soon.

Key changes to the NAIF will include an option to lend directly to project proponents in certain circumstances, rather than through the relevant state or territory jurisdiction.

While the NAIF was previously restricted to funding physical construction works only, the reforms will make NAIF finance available to additional elements of infrastructure construction, such as equipment purchases or leasing, training, and the expansion of existing business operations.

The definition of public benefit applied when assessing projects will be expanded to include consideration of factors such as jobs, regional income, and opportunities for local suppliers, Indigenous businesses and communities.