A $15 billion manufacturing fund has cleared a major hurdle, paving the way for the government's signature investment vehicle to shore up domestic industry.
The government managed to get key crossbenchers onside to pass its legislation in the Senate on Tuesday after negotiations went down to the wire.
Minister Don Farrell said the fund would revitalise Australian manufacturing and increase secure work.
"Creating jobs that communities can build around, especially in regional, remote and outer suburban Australia," he told parliament.
"We are investing in businesses so they can invest in their workers, developing the skills we need to meet any challenges the future may have in store."
The fund will aim to drive investment in seven priority areas: resources, agriculture, transport, medical sciences, renewables and low-emissions technology and defence.
The coalition opposed the fund, saying it's inflationary and poorly designed but the Greens signed on after assurances money will not go towards coal or gas projects or be used to directly finance the logging of native forests.
Tasmanian senators Jacqui Lambie and Tammy Tyrrell supported the bill after amending it to ensure the fund's board members would be selected from a diverse range of professional backgrounds was successful.
"We don't want to see Labor stack it full of union officials. We don't want to see the Liberals stack it full of former Liberal politicians," Senator Tyrrell said.
"We thought it was important that the board reflects the skills it needs."
Independent senator David Pocock supported the fund after securing a guarantee there would be a sustainable pipeline of projects to be invested in.
The ACT senator also secured the government's commitment to explore additional policies to that would help startups get better access to investments before they commercialise.
"This commitment will help address one of the biggest challenges local firms raise with me around the need for more of that early capital to get them through the valley of death," he said.
Nationals leader David Littleproud said the billions pumped into the economy and would have an inflationary impact, while government borrowing for the fund and other policies, such as its housing fund, would pump up interest rates.
"These guys are borrowing like it's going out of fashion and that's putting pressure on your interest rate," he said.
Liberal senator Linda Reynolds said the government's deal with the Greens would ensure money would not flow into the sectors it needed to.
She also took aim at how it would be administrated.
"In this terrible model. It will take money far too long to start flowing to manufacturers," she said.
The legislation will head to the government-controlled lower house to be rubber stamped before being able to become law.
