The Government today announces that Australia will become a founding member of the Asian Infrastructure Investment Bank (AIIB).
The decision comes after extensive discussions between the Government, China and other key partners around the world.
There is an estimated infrastructure financing gap of around US$8 trillion in the Asian region over the current decade.
The AIIB will be part of the solution to closing this gap.
Joining the AIIB presents Australia with great opportunities to work with our neighbours and largest trading partner to drive economic growth and jobs.
The AIIB will work closely with the private sector, paving the way for Australian businesses to take advantage of the growth in infrastructure in the region.
The governance of the AIIB will be based on best practice, ensuring that all members will be directly involved in the direction and decision making of the bank in an open and transparent manner.
We look forward to working with other members to lay the foundations for an effective new multilateral institution which is expected to be operational by the end of the year.
Australia will contribute around A$930 million as paid-in capital to the AIIB over five years and will be the sixth largest shareholder. The AIIB will have paid-in capital of US$20 billion ($A25.2 billion) with total authorised capital of US$100 billion (A$126.2 billion).
The Treasurer will attend the Articles of Agreement signing ceremony at the Great Hall of the People, Beijing on Monday 29 June.