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Consultation to strengthen the Indigenous Procurement Policy

19 December 2023
Media Release

Public consultations on how to strengthen the Commonwealth Indigenous Procurement Policy (IPP) have opened through until 1 March 2024.

Through the Buy Australia Plan, the Albanese Government has committed to providing more opportunities for First Nations Businesses and increasing sustainable employment. Strengthening the IPP will be key to delivering on this commitment.

Since it was introduced in 2015, the IPP has generated over $9 billion in contracts for more than 3,600 Indigenous businesses.

The policy has been key to recognising Indigenous businesses across Australia as critical delivery partners in major government projects.

The Albanese Government‘s priority is to ensure that the opportunities and benefits provided through the IPP are genuinely flowing to First Nations businesses as intended.

Reviewing the eligibility criteria to access procurement opportunities under the IPP is the first step.

The consultation will seek to gather perspectives around several priority reform areas, including a proposed shift to require that Indigenous enterprises be majority Indigenous owned, managed and controlled.

Consideration is also being put into the issue and perception of ‘black cladding’ - when a business unfairly uses policies not intended for them, like the IPP, to access markets.

For more information about the Indigenous Procurement Policy please visit the following website: https://www.niaa.gov.au/indigenous-affairs/economic-development/indigenous-procurement-policy-ipp 

For more information on how to participate in the consultation process please see: https://www.niaa.gov.au/indigenous-affairs/economic-development/indigenous-procurement-policy/strengthening-indigenous-procurement-policy-ipp-through-consultation-and-reform

Quotes attributable to Assistant Minister McCarthy

“The Indigenous Procurement Policy is about working in partnership with First Nations people and businesses to boost self-determination, economic empowerment, and employment opportunities.”

“The Albanese Government’s commitment to strengthening the Indigenous Procurement Policy will mean more opportunities for First Nations businesses and greater progress toward Closing the Gap.”

“Indigenous businesses across the country have demonstrated their ability to consistently deliver high-quality work for government.”

“This consultation process will provide valuable insight into ensuring economic benefits are flowing to First Nations people, businesses and communities.”