Fund for north Australia infrastructure to cost $40 million

THE Turnbull government's proposed $5 billion northern Australian infrastructure fund will cost about $40 million to set up, with that cost borne by developers and state governments applying for the funds.

Resources Minister Josh Frydenberg introduced legislation into parliament yesterday to make the fund a reality.

A "draft investment mandate" was circulated for consultation.

The fund must not be the main source of capital in any project applications.

Northern Australia Minister Senator Matt Canavan said he expected the proposal would go before a parliamentary inquiry next month.