Coal, gas, and logging will not be banned under Labor's $15 billion National Reconstruction Fund, Industry Minister Ed Husic says.
The government's election pledge passed the lower house on Thursday after a deal was struck with the Greens, amending the legislation to prevent the fund being used to invest in coal and gas projects, or log native forests.
The manufacturing fund will provide finance for projects in key areas such as technology, transport and renewables to boost manufacturing in Australia.
But the decision to exclude logging from any funding has angered Tasmanian Senator Tammy Tyrrell who accused the government of breaking their promise to support her state's industry.
Mr Husic said logging will continue to take place where states and territories allow it.
"The whole notion that this will stop logging, it won't, it will continue," he told ABC radio on Friday.
"We're not banning coal and gas in the NRF (reconstruction fund).
"We are saying that the NRF is about a specific activity, where there's a value add component, we recognise that energy generation through coal or through gas ... is really important."
Mr Husic reiterated the manufacturing fund was never designed for coal and gas projects, but Labor was happy to provide the Greens with reassurance.
"We have expressed, emphasised, said a number of times this fund is about manufacturing," he said.
"It's not about extraction, it's not about logging either."
The government still needs the support of at least two crossbench senators in addition to the Greens for the bill to pass.
The coalition has promised to scrap the fund if they win government at the next election.
