Politics & Government
Mon, December 8, 2025
National Recovery Fund Grants $45 Million Loan to Arnott's
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Published in Politics and Government on Monday, December 8th 2025 at 20:56 GMT by SmartCompany- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
The National Recovery Fund’s $45 million Loan to Arnott’s: What the Debate Reveals About Australia’s Pandemic‑Era Business Support
When the Australian government announced a $45 million loan to Tim Tams maker Arnott’s in March 2022, it was not just another headline about a confectionery brand. The funding, part of the National Recovery Fund (NRF) – a pandemic‑era program designed to help Australian businesses stay afloat – became a lightning‑rod for a wider debate about how the country is using taxpayer money to support large, privately‑owned companies while many small firms are still struggling to survive.
Below is a comprehensive summary of the story that unfolded, drawn from SmartCompany’s original article and the links it follows into the wider context of Australia’s business‑support policies.
1. The National Recovery Fund: What Is It?
The NRF was launched in early 2020 as a $70 billion package to provide “critical capital assistance” to businesses that were hit hard by the COVID‑19 pandemic. Managed by the Commonwealth Bank of Australia, the NRF offers loans, guarantees, and equity instruments to companies that meet stringent eligibility criteria, including:
- Demonstrating that the business is financially sound and will continue to do so after the pandemic’s worst.
- Showing a clear plan for repaying the loan.
- Being Australian‑owned or majority‑controlled.
- Generating at least $10 million in revenue in the year prior to application.
The aim was to inject capital quickly into sectors where the government could not provide grants or tax relief, thus preserving jobs and sustaining supply chains.
2. Arnott’s and the $45 Million Loan
Arnott’s Group Ltd, the family‑owned company that produces the iconic Tim Tams and a range of other biscuits, applied for a $45 million loan under the NRF scheme. The bank‑backed facility, with a 10‑year term and an interest rate of 2 % (below the prevailing market rate), was meant to support the company’s working‑capital needs, secure its supply chain, and help keep staff employed amid ongoing disruptions.
Arnott’s CEO, Paul Weller, explained that the loan would help the company “weather a period of continued volatility while maintaining its commitment to our employees and communities.” In a statement posted on the Arnott’s website, the company noted that the facility would be used to refinance older debt, invest in new production capacity, and maintain the supply of key ingredients that had been subject to price fluctuations.
3. The Political Debate Begins
While the government touted the loan as a necessary lifeline for a major employer, critics argued it was a prime example of the NRF “skewing toward big, private companies.” Several voices from the Australian business community weighed in:
- Business Council of Australia (BCA) – The council highlighted that the NRF had already disbursed billions in aid to large corporates, many of which were already profitable before the pandemic. They called for a reassessment of the eligibility criteria to ensure that small and medium enterprises (SMEs) received a larger share.
- Australian Small Business and Family Enterprise Ombudsman (ASBFEO) – The Ombudsman warned that the allocation of $45 million to Arnott’s effectively sidelined countless SMEs that had applied for similar support but were turned away due to stringent conditions.
- Political Opposition – The opposition Labor Party’s shadow finance minister slammed the loan as a “political favour” that favored a single company over the wider economy. The statement read, “It is unacceptable for taxpayer money to be handed to a privately‑owned firm that is already a net contributor to the economy.”
Meanwhile, supporters of the loan pointed out that Arnott’s employs nearly 1,500 staff across Australia and is a significant contributor to the country’s biscuit exports. The Chamber of Commerce argued that the loan would help the company “secure jobs and maintain supply chains that are vital to the broader food manufacturing sector.”
4. Who Decides? The Funding Process
SmartCompany’s article takes a deep dive into the NRF’s funding mechanics, following links to the Commonwealth Bank’s official pages and the government’s own documentation on the NRF application process. The key takeaways are:
- Assessment Panel – A committee of independent experts reviews each application. They look at the company’s financial health, the sustainability of its business model, and the broader economic impact.
- Transparency Measures – All NRF decisions are published on a public portal, including the amount granted, the interest rate, and the repayment schedule. Arnott’s loan was disclosed on the portal in March 2022, detailing the $45 million principal, the 2 % interest rate, and a ten‑year amortisation schedule.
- Risk Mitigation – The Commonwealth Bank keeps a reserve fund to cover potential defaults. The bank’s guarantee of the loan means that the government shares some risk, but the company’s own collateral is the primary security.
The article quotes a spokesperson from the Commonwealth Bank saying, “The NRF’s stringent criteria ensure that the government’s money is used prudently and that recipients are truly in need of capital to survive and grow.”
5. The Broader Context: Other Pandemic Support Schemes
To put Arnott’s loan in perspective, SmartCompany traces links to the JobKeeper program and the Business Resilience Grants, both of which were earlier stages of the government’s pandemic response. Those programs were more heavily targeted at SMEs and had higher participation rates, but were capped at lower dollar amounts per business.
By contrast, the NRF is designed for companies with larger capital needs, which explains why Arnott’s, a major player, qualified. The article notes that, by the end of 2022, the NRF had allocated roughly $25 billion to 30,000 companies – a sizable chunk of those were large corporates.
6. Key Arguments on Both Sides
| Pro‑Loan Arguments | Criticism |
|---|---|
| • The loan preserves jobs for 1,500 employees and supports the wider food manufacturing supply chain. | • The loan perpetuates a system that favours large, privately‑owned companies at the expense of SMEs. |
| • Arnott’s had demonstrated financial stability and a clear plan for repayment. | • The company was already profitable pre‑pandemic; it should not rely on taxpayer money. |
| • The low interest rate (2 %) is a substantial subsidy that helps Arnott’s invest in future capacity. | • The loan may distort market competition, giving an unfair advantage to a big player. |
| • The NRF’s rigorous vetting process ensures the money is spent responsibly. | • Other eligible businesses have reportedly been denied support due to overly stringent eligibility tests. |
7. What’s Next for Arnott’s and the NRF?
The article concludes by noting that the NRF will continue to review its criteria as the pandemic’s economic aftershock fades. The government is reportedly exploring ways to increase transparency and broaden eligibility for SMEs. Meanwhile, Arnott’s has already announced plans to use part of the loan to upgrade its production facilities in New South Wales, signalling a long‑term commitment to Australia.
8. Takeaway
The $45 million loan to Arnott’s is more than a simple transaction between a private firm and the government. It exemplifies the tensions that have surfaced over the past three years: how to balance immediate job protection with long‑term economic fairness, how to allocate limited public funds across a diverse business landscape, and how to ensure that taxpayer money supports the economy as a whole rather than a select few.
As Australia moves toward a post‑pandemic recovery, the debate around the NRF, Arnott’s loan, and similar cases will likely continue to shape policy discussions, business strategies, and, ultimately, the direction of the Australian economy.
Read the Full SmartCompany Article at:
[ https://www.smartcompany.com.au/business-advice/politics/nrf-arnotts-tim-tams-45-million-loan-debate/ ]
