First Nations businesses to benefit from changes to the Indigenous Procurement Policy

The Australian Government has announced reforms to the Indigenous Procurement Policy (IPP) to provide more opportunities for First Nations businesses and advance First Nations economic empowerment. 

The changes to the IPP, which are coming into effect progressively in the next 6 -18 months, increase the Commonwealth’s Indigenous procurement targets, explore ways to increase transparency of suppliers’ performance against Indigenous participation targets contained in high value contracts and options to tackle ‘black cladding’. 

The eligibility criteria for the IPP will be strengthened to require that Indigenous businesses must be 51 per cent or more First Nations owned and controlled (or registered with the Office of the Registrar of Indigenous Corporations) to access the IPP. This will ensure First Nations business owners accessing the IPP are empowered to run their businesses and exercise their rights as majority owners. Transition to the new criteria will begin from 1 July 2026, with further details of the transitional arrangements to be determined in the coming months.

The strengthened IPP will help support economic empowerment for First Nations people and directly contribute to Closing the Gap and the Buy Australian Plan by providing more opportunities for First Nations businesses. 

These changes were informed by feedback received from the First Nations business sector and other stakeholders. They also align with recommendations made by the Joint Standing Committee on Aboriginal and Torres Strait Islander Affairs 2024 inquiry into First Nations economic self-determination and opportunities. 

For more information visit the NIAA website or you can read the Minister’s media release here.