Regional Australia to share in $20 billion future fund

The Nationals have pledged a regional Australian future fund worth $20 billion, if the coalition wins the May 3 election, with $1 billion to be set aside for projects each year.

The junior coalition partner has denied the money would be used for pork barrelling.

Nationals leader David Littleproud said the investment fund means regional areas won't have to squabble over general federal government money.

"We're always fighting in regional Australia to get that last mile of infrastructure spend that doesn't fit in the normal pots of money," he said.

"This is just about making sure that we have that reliable amount of funding that's there year in, year out, and then we're not having to fight for it every year."

The regional fund would be set up with $5 billion in funding sourced from Labor's program for green energy and transmission line construction, which the coalition plans to scrap.

The remainder of the money would be gathered from budget windfalls from higher commodity prices - which often boosts government coffers - until it adds up to $20 billion.

The coalition has also pledged to set up a second fund, called the future generations fund, which would be used to pay down government debt.

Shadow treasurer Angus Taylor said mining and commodity windfalls would be turned into assets under the funds.

"These funds will be about future generations of Australians and investments that are necessary for them to have the best possible life they can have," he told reporters in Sydney.

The opposition had previously pledged to scrap Labor's housing Australia future fund, as well with the national reconstruction fund worth $10 billion and $15 billion, respectively.

Nationals senator Bridget McKenzie said independent analysis would be used to determine how the money would be spent, rejecting claims it would be used to shore up support in seats held by the Nationals in parliament.

"You don't have to go very far outside of our capital cities to see the degradation of our road network," she said.

"That means every single Australian ends up paying more for their food, more for their goods because of the impact on our freight supply chain."

The coalition also plans to legislate the funds so they can't be easily scrapped by future governments.

The money would be distributed through a competitive grants process to not-for-profits for projects like expanding a childcare centre or boosting the number of regional Commonwealth-supported university placements.

Australian Associated Press