From the 2007-08 and 2008-09 Budgets, $5 billion from the surplus will be directed to the newly created EIF in addition to assets totalling
$6 billion from the Higher Education Endowment Fund (HEEF), with the potential for money from future surpluses to be channelled into the fund.

The EIF is the Government's investment in building a modern, productive Australian economy to meet future challenges.

The key priorities of the EIF will be capital expenditure and renewal and refurbishment in universities and vocational institutions as well as in research facilities and major research institutions.

Unlike the previous funds which allowed only for the interest earned to be spent, there will be no cap on yearly allocations from the EIF.

A statement from the Hon. Julia Gillard M.P, Minister for Education. Minister for Employment and Workplace Relations, explains that this means substantial investment can be made in educational institutions in order to improve their capacity to deliver education and training.

Annual disbursements from the EIF be decided through the annual appropriation process to ensure transparency and allow parliamentary scrutiny and the Minister intends to take into account the sectors’ needs and overall macroeconomic conditions.

There will be no disbursements from the EIF in the 08-09 financial year to allow for recommendations from the Higher Education Review and priorities of universities and vocational education and training sectors.

The Future Fund Board of Guardians will be responsible for managing the fund.

The EIF will have an appropriate advisory board to advise the Minister for Education, and the Minister for Innovation, Industry, Science and Research on research matters, on the relative merits of funding applications.

The pre-existing Higher Education Endowment Fund (HEEF) advisory board will be involved in the transition to the new EIF advisory arrangements.