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Food security in remote First Nations communities

Good nutrition is essential to good health and a strong future

Food Security means having continuous access to a range of food, drinks and other essential groceries that are reasonably priced, safe and meet the dietary and cultural needs of the household.

The National Agreement on Closing the Gap commits all Australian governments to change the way we work to share decision-making and partner with Indigenous Australians to improve outcomes. The 2024 Commonwealth Closing the Gap Implementation Plan recognises remote food security as a national priority.

Higher costs in remote communities are broadly caused by two key factors: lower commercial purchasing power of remote suppliers; and higher operational costs, including freight and repair costs (HORSCIA Inquiry).

Price and availability of food in remote communities has been further stretched in line with national market trends impacted by the COVID-19 pandemic, supply chain interruptions, severe weather and rising fuel costs.

Through the Indigenous Advancement Strategy, the National Indigenous Australians Agency provides funding to First Nations communities and businesses for place-based projects to improve community nutrition outcomes.

 

2025 Closing the Gap Implementation Plan Food Security Initiatives 

The 2025 Closing the Gap Implementation Plan details the Government’s $71.4 million commitment to improving remote food security through a low-cost essentials subsidy scheme, dedicated remote store governance training and support package and an in-store Nutrition Workforce. 

Access to low-cost essentials for remote stores subsidy scheme

The Australian Government has committed to reduce the costs of around 30 essential items in more than 76 stores in remote First Nations communities. The reduced prices will be the result of a product ‘subsidy’ scheme that will grow to cover up to 152 remote stores. 

The aim is to reduce the cost of items in remote stores to be comparable to supermarkets in urban areas, to help address cost-of-living pressures and high rates of food insecurity experienced in remote First Nations communities. 

The subsidy scheme will be administered by Commonwealth company Outback Stores Pty Ltd to facilitate remote stores’ ability to purchase a range of essential products at a lower wholesale price, with freight costs also subsidised.

Further information on the subsidy scheme is available below.

What is the access to low-cost essentials for remote stores subsidy scheme?

The Australian Government has committed to reducing the costs of about 30 essential items in initially 76 remote stores, expanding to up to 152 remote stores. The reduced prices will be the result of a product subsidy scheme. 

The aim is to reduce the cost of items in remote stores to be comparable to supermarkets in urban areas. This will help address cost-of-living pressures and the high rates of food insecurity experienced in remote First Nations communities across Australia. 

The subsidy scheme will be administered by the not-for-profit Commonwealth company Outback Stores Pty Ltd. Outback Stores will make it possible for remote stores to purchase a range of essential products at a lower wholesale price, with freight costs also subsidised.

The scheme will be supported by additional warehouse capacity, which will be designed, located and operated in a way that improves the resilience of the remote supply chain; helping it withstand shocks such as weather events.

How will the essential items be chosen?

The NIAA with Outback Stores will use a process of consultation and consumer sales data to determine and regularly update the subsidised items that will provide cost-of-living relief to remote consumers.

The NIAA worked with the Remote Food Security Working Group to develop a list of 30 items to inform discussion at the Industry Roundtable on Affordability of Food and Essential items in Remote First Nations Communities, in November 2024. This list can be found on the Outback Stores website (https://outbackstores.com.au).

Is the subsidy covering just one size or quantity for the 30 items?

The subsidy will target 30 essential items. These items (for example flour and toilet paper) may be offered in various forms such as 1 or 2 kilograms of flour and 6 or 24 packs of toilet paper. This will increase choice to remote consumers.

Is this only for remote stores in the Northern Territory?

No. There are remote stores in South Australia, the Northern Territory, Western Australia, Queensland and New South Wales.

How many stores will be able to access the scheme?

The scheme will initially support 76 remote stores, expanding to up to 152 remote stores.

Is the scheme available to all remote stores?

Yes, provided they meet the eligibility criteria.

What are the eligibility criteria?

Eligibility criteria to access the scheme will be developed to ensure stores that are operating in remote First Nations communities and are critical to food security are supported.

Stores need to demonstrate a need to access the cheaper essential items, with a requirement for remote stores to sign up to the National Code of Practice for Remote Store Operations (currently being developed) to support oversight. 

How can a remote store apply?

Further information on how to apply will be available closer to the start of the scheme.

When can remote stores start accessing the subsidy?

The subsidy scheme will commence from 1 July 2025.

Is Outback Stores managing the remote stores?

No, Outback Stores will focus on assisting stores with the supply of subsided items.

Will Outback Stores be able to supply all the stores’ ordering needs?

No, Outback Stores will focus on supplying the items covered by the subsidy.

Why is Outback Stores administering the scheme?

Outback Stores is a Commonwealth company and is well positioned to administer a Commonwealth subsidy scheme.

Outback Stores currently administers a Commonwealth subsidy, which underpins the financial viability of remote stores that lack the sales volume to cover operating costs yet are important for food security. 

How will the subsidy stop prices of the items being inflated?

Eligible remote stores will need to sign up to the National Code of Practice for Remote Store Operations (currently being developed). There will be specific conditions on price monitoring and reporting.

What is the trial that Outback Stores is currently running?

Outback Stores is working with the Arnhem Land Progress Aboriginal Corporation (ALPA) to trial subsiding 9-10 essential items. The trial is the first step in preparing for the subsidy scheme and covers between 65-70 stores. Outback Stores will continue to expand the trial to include more products and stores leading up to 1 July 2025, when the subsidy scheme commences.

The trial subsidy has chosen its products from a list of items developed by the Remote Food Security Working Group. 

This list formed the basis of the Industry Roundtable on Affordability of Food and Essential items in Remote First Nations Communities, in November 2024. 

The list was developed on remote consumption patterns and designed to have a positive impact on the cost-of-living for remote First Nations residents.

For the Outback Stores managed locations under the trial, consumers have seen savings of 30-50% on subsidised items.

The trial currently consists of the following goods:

  • Flour
  • Milk – UHT 
  • Cereal Wheat Biscuits
  • Canned Meals
  • Dry pasta 
  • Rice meals
  • Toilet Rolls
  • Nappies
  • Shampoo 
  • Conditioner

A more detailed list of these goods can be found on the Outback Stores website (https://outbackstores.com.au). This list will be updated as the trial evolves.

How can I find out more?

Additional information and updates will be located on the NIAA and Outback Stores websites. 

Queries to NIAA can be made via remotefoodsecurity@niaa.gov.au

Dedicated governance training and support package

A dedicated governance training and support package for remote stores will be developed to build the governance and operational capability of remote stores. This will be developed with the Office of the Registrar of Indigenous Corporations.

Nutrition workforce

An in-store nutrition workforce will be established in over 100 remote stores. This will upskill a local First Nations workforce to support consumers to make healthier choices. This will expand on a successful model, where local First Nations nutrition workers use language and local knowledge to make positive behavioural change.

School Nutrition Program

The School Nutrition Projects (SNP) provides meal services to students in 73 schools across the Northern Territory. A key objective of the SNP is to improve school attendance and learning outcomes. Through the SNP, NIAA grant recipients provide a combination of breakfast, morning tea, lunch or afternoon tea to students attending school. Meals are prepared in accordance with the Northern Territory Department of Education’s School Nutrition and Healthy Eating Policy and National nutrition standards.

Remote Food Security Working Group

The Remote Food Security Working Group coordinates government and industry actions to identify and address issues with the remote supply chain. Through this Group, the Australian Government is working with state and territory governments, retailers, major wholesalers and distributors to ensure residents of remote First Nations communities have access to the essentials they need.

Outback Stores

The Commonwealth owned company, Outback Stores Pty Ltd (OBS), provides high quality retail management and support services to 56 First Nations owned stores across Australia (numbers can change slightly as management arrangements change). This includes providing financial support to a number of essential stores that may otherwise not be able to operate.

OBS was established in November 2006 and emerged from a need to improve the health of Indigenous people in remote Australia by addressing nutrition-related health problems, unreliable food supplies and store closures. Its purpose is to be a sustainable business that makes a positive difference in the health, employment and economy of remote First Nations communities by improving food affordability and availability, nutrition and community services.

OBS strives to enable and empower Aboriginal and Torres Strait Islander people to live healthy and prosperous lives and work towards Closing the Gap. OBS does not receive any of the profits from the stores it manages on behalf of the community. Any store profits belong to the storeowner.

For further information, including locations, please visit Outback Stores.

Remote Community Stores

Over 200 stores service remote communities across Australia. The HORSCIA Inquiry found higher on average prices in remote stores are a genuine and direct result of the significantly higher costs involved with operating in remote contexts. If your community store needs support, you can contact:

  • Outback Stores – provides retail store management and support services to Aboriginal owned community stores. Outback Stores does not receive any store profits; however does charge a fee for services.
  • Office of the Registrar of Indigenous Corporations (ORIC) – provides training in corporate governance for directors, members and key staff; advice on how to incorporate; and legal compliance oversight and advice. 

The Australian Government does not own any remote stores. Like commercial businesses nationwide, remote stores operate under a variety of ownership and management arrangements.

 

National strategy for food security in remote First Nations communities

Consultations on the National Strategy have closed. For more information, view the National Strategy for Food Security in Remote First Nations Communities page.

View the National Strategy for Food Security in Remote First Nations Communities page

In partnership with state and territory governments and First Nations peoples, the Australian Government is developing a national strategy for food security in remote First Nations communities. 

The Strategy responds directly to Recommendation 10 of the 2020 House of Representatives Standing Committee on Indigenous Affairs Inquiry into food pricing and food security in remote Indigenous communities (HORSCIA Inquiry). It will shape actions in response to the HORSCIA Inquiry and seeks to provide a coordinated national approach to improving the price, availability and quality of food and essential groceries in remote First Nations communities.

The Commonwealth is investing up to $11.8 million over two years (2023-24 to 2024-25) for Strategy development and early implementation of priority projects. 

  • $10.4 million for priority actions identified through Strategy development. 
  • $1.4 million for remote consultations and project management activities. 

 

Government response to HORSCIA food security inquiry

The Australian Government tabled its response to the HORSCIA Inquiry on 2 December 2021.

The report makes 16 recommendations, including a live price monitoring tool, national stores licensing, a focus on local distribution and food production, grants to support community stores, and other measures to address store governance and management. 

Many of the recommendations cut across Commonwealth and state and territory responsibilities. The Government has supported or provided in-principle support for 10 of the 16 recommendations.

The NIAA is leading the Government response including engagement across governments.

 

Community Stores Licensing – Northern Territory

The Stronger Futures in the Northern Territory Act 2012 (SFNT Act) Commonwealth legislation sunset on 16 July 2022. Stores licensing has transitioned to the Northern Territory Government.

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