Commonwealth continues to expand its purchasing from Indigenous businesses

Media release - Minister Wyatt

The Commonwealth’s Indigenous Procurement Policy (IPP) continues to create opportunities for growth with more than 200 Indigenous businesses winning their first contract with the Australian Government in the 2020–21 financial year.

Minister for Indigenous Australians, the Hon Ken Wyatt AM, MP, said the IPP has been a simple measure that is driving more of the Commonwealth’s annual spend into Indigenous businesses.

“The Australian Government is one of the biggest purchasers in the country and the IPP has helped make sure that Indigenous businesses are getting their fair share of that spend,” Minister Wyatt said.

“By actively increasing the number and value of contracts going to Indigenous business, IPP has seen more than $4.2 billion awarded since 2015.

“And because Indigenous businesses are also more likely to employ Aboriginal and Torres Strait Islander people, this has significant flow-on effects to families and communities across Australia.

“Despite COVID-19 challenging most sectors, many Indigenous businesses have successfully adapted and proven that, when given a chance, they are just as capable at presenting value for money and delivering goods and services that are fit for purpose.

“Companies like WV Technologies, who won their first two contracts with the Australian Government for IT hardware supply and removal, are achieving great results.

“With the assistance of the IPP, Indigenous businesses can expand into sectors in which they’ve previously been under-represented. In 2015, the Australian Government only had 19 contracts with Indigenous businesses in the IT sector worth $4.2 million. By 2019–20, this grew to 178 contracts worth $34 million.

“Claudine Thornton Creative is another example of an Indigenous business securing its first contract with the Australian Government this year, winning a tender to create promotional videos for the Department of Education, Skills and Employment’s ‘Career Revive’ program.

“Claudine demonstrates that Indigenous businesses can do much more than deliver Indigenous content and services – they can, and do, deliver mainstream services on a competitive basis.

“All Commonwealth portfolios have really taken the IPP forward to the point where we have been able to introduce value targets on top of the number of contracts targets that we started with.

“While the full data on outcomes under the IPP for the 2020–21 financial year is still being compiled, we do know that it will be another strong result Indigenous businesses.”

For more information, visit www.niaa.gov.au/ipp