Pension Funds: Australia

Australian institutional investors view the UK as an attractive location for long-term capital, and they have already committed £71 billion into the UK economy since 2022. With Australia's superannuation funds projected to reach £4.1 trillion by 2035, there is a significant opportunity to deepen this relationship further. This Government signed an investment MoU with Australia to take advantage of that growth, providing the foundations for Australian pension investment in the UK to double to £99 billion by 2035.

The MoU commits both governments to identifying and reducing obstacles to cross-border investment. This work will be taken forward by both sides, building on existing forums such as the UK-Australia Joint Financial Regulatory Forum. The inaugural Forum took place on 24 September and aims to advance cooperation on financial regulatory matters. Further details of the discussions can be found in the Joint Statement.

The Government is also taking steps to address infrastructure constraints that can affect investment decisions, including through ongoing queue reforms to remove speculative projects and free up capacity for high-value investments. For the most strategically significant projects, the Industrial Strategy launched the Connections Accelerator Service, a joint DESNZ and Office for Investment (OfI) service providing bespoke grid access support, with a pilot launched at the end of 2025.

The Government will continue to work with Australian superannuation funds and other institutional investors to ensure the UK remains an attractive destination for long-term capital.