The Indigenous Procurement Policy (IPP) is changing. The changes aim to increase the ambition of the policy and ensure that the economic benefits of the IPP are genuinely flowing to First Nations Australians as intended. The changes reflect feedback from consultations and recommendations from Parliamentary inquiries.
Key changes
- The IPP eligibility criteria: The eligibility criteria for the IPP will be strengthened to require that Indigenous businesses are 51 per cent or more First Nations owned and controlled (or registered with ORIC) to access the IPP. Transition to the new criteria will begin from 1 July 2026, with further details of the transitional arrangements yet to be determined. This will ensure First Nations business owners accessing the IPP are empowered to run their businesses and exercise their rights as majority owners.
- Commonwealth and portfolio procurement targets: starting 1 July 2025, the target for the Commonwealth and portfolios to buy from Indigenous businesses will increase to 3%. They will increase by 0.25% each year until they reach 4% by 2030. The Government will also review the methodology for the target calculation and measurement.
- Increase transparency: NIAA will explore the feasibility of increasing transparency of suppliers’ performance against Indigenous participation targets contained in high value contracts (Mandatory Minimum Indigenous Participation Requirements).
- Tackle 'black cladding': The Government remains committed to exploring options to tackle black cladding in other ways. The NIAA will work with relevant regulators and support services to identify opportunities to make it easier for First Nations people to report black cladding that might amount to unlawful conduct and provide targeted education, guidance and support for First Nations business owners.
This website will be updated over the coming months with further information about these reforms.
Consultations
On 18 December 2023, Senator the Hon Malarndirri McCarthy, the then Assistant Minister for Indigenous Australians and Indigenous Health, announced public consultations on how to strengthen the IPP.
Consultations occurred from December 2023 to March 2024 and gathered perspectives on reform options including changing the definition of a First Nations business, ways to increase opportunities for First Nations businesses, and ensuring benefits are genuinely flowing to First Nations people.
Stakeholders raised a lot of views and ideas about how to reform the IPP. They also suggested ways to improve Commonwealth procurement processes so that they provide more opportunities for First Nations business.
Stay in touch
For more information register your interest for email updates on the changes to the IPP. You can also contact IPPReform@niaa.gov.au.